Communication is the number one most critical component of reaching a successful short sale closing.
We speak with the seller to discuss their situation. We like to set expectations that reassure them how we are going to handle their file until it closes.
Part of this discussion will prepare them for gathering their financial documents, but also understanding how your offer works for them.
Before we work on the seller/borrower's documentation, we will have them fill out our short sale application. Your Short Sale Support rep will provide you one for each transaction.
Our application package contains explanations of the short sale as well as our contracts to engage on their behalf.
We will work with your sellers to prepare their documentation. There will be several requirements that each lender will review, and now is the time to understand their financial situation.
Each seller is required to provide a hardship letter, and to provide evidence of their hardship. We will handle all of this for you.
Each lender may have their own Letter of Authorization (LOA) form for all borrowers to sign.
After we have the offer contract, all the necessary short sale documents, all the forms the lender needs signed, combined with the hardship letter, we will polish it as a short sale package. This might sound redunant, but properly presenting all the information is critical to an efficient short sale process.
Typically, each lender will review that the borrower has a hardship. Once their file is accepted in the short sale processing, an appraisal is ordered to determine the properties current as-is value.
We spend a lot of energy working with local appraisers on each file. Understanding the appraisal process and how to talk their language saves them time and energy.
When the offer submitted falls into the lender's guidelines for approval, a letter is sent back to us. This approval letter states the requirements, restrictions, terms, price, timing, and everything related to the sale and transfer of the deed.
One of the most important aspects is our ability to protect you from tax consequences, or future liability. Negotiating the approval letter is critical for a successful short sale.
We manage all the issues with the title and each lienholder. Sometimes there are multiple issues with multiple mortgages. You may stumble upon HOA liens, Tax liens, violations, utilily liens. It is our job to have a clean closing for you.