3 step: Find a buyer
Find a Buyer-without a buyer there is no short sale.
I will put up the home for sale, just like a regular real estate listing. The price will be set very aggressively, as time is working against your financial situation. Besides the regular real estate listing agreement, some information pamphlets and a power or attorney to discuss the loan(s) with your lender(s) need to be signed. Then clutter up your property to put it in the best showing condition possible. You can start packing things up as you will move out sooner or later anyway. So do it as a courtesy for any prospects looking at your home. Maybe this also helps you getting in the mood of sorting things out. You just started to take your future back in your hands and regain your personal freedom again! Congrats!
Banks won’t negotiate a short sale without a substantial offer on the table, so in order to get started, we need an offer. Once an purchase offer comes in, you have to accept that offer “contingent to bank(s) approval.” Practically any price should be accepted by the seller, however the terms need to be checked to make sure we are having an “arm’s length transaction”. Leave it to the bank if they like the price or not. Don’t waste your thoughts about them, they don’t care about you!
At this point all documents mentioned in step 1 need to be updated and complete, so the offer can be submitted to the bank instantly. Once the bank receives the package and it is complete (our packages are always complete), they start their process which brings certain time frames:
1.) Within 30 days a negotiator is assigned
2.) A BPO (Broker price opinion) is ordered. This is like a small appraisal (you don’t have to pay for that).
3.) Within 15 days the offer is accepted, countered or rejected or they require additional documents.
Some banks require for short sale approval to be late in payments, some even don’t. So don’t think you don’t qualify per se because you used your savings in the past. Depending on your situation, it can never be too soon to start a short sale.
By the way: Realtor commission will be paid by the bank, not you. If you qualify for the government run program HAFA, you might even be entitled for financial moving assistance. If you qualify for this program even better, if not, don’t worry, a short sale is still possible.
The Home Affordable Foreclosure Alternatives (HAFA) short sale program was developed to give homeowners a way to settle their mortgage debt without going through a foreclosure.
The goal of this program is to help you sell your home in a short sale and settle your mortgage debt if you owe more on your mortgage than your house is worth and are unable to qualify for a home loan assistance program.
This federal government program streamlines the short sale approval process and offers financial assistance to help you with relocation.
You may be eligible for the Home Affordable Foreclosure Alternatives program if:
the property is your current principal residence, OR the property has been vacant or rented out for less than 12 months, and you have not bought another principal residence during that time.
the amount you owe on your first mortgage for your property is equal to or less than:
- $729,750 for 1 unit
- $934,200 for 2 units
- $1,129,250 for 3 units
- $1,403,400 for 4 units
you owe more on your home than it’s worth
your current mortgage was taken out on or before January 1, 2009
you are experiencing a hardship (such as a job loss, divorce or medical emergency) and are unable to afford your current home loan
To check if your loan is owned by Fannie or Freddie:
1.800.7FANNIE (8am to 8pm EST) www.fanniemae.com/loanlookup
1.800.FREDDIE (8am to 8pm EST) www.freddiemac.com/mymortgage
Have you already setup your appointment for a free short sale consultation? If not, it’s really time to do so now:
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