SHORT SALE: What is a Short Sale Process?

Short Sale Process

If you owe more on your mortgage than your home is worth, and have some kind of hardship (although not mandatory) you can qualify to Short Sale. In California, you must use a licensed real estate agent or broker. Short Sales are complex and you should use someone who has experience and knowledge in Short Sale negotiations.

Step 1: Is a Short Sale is Right For You?
You have other options which may include refinance, loan modification or deed-in-lieu. Give us a call at 1-800-246-4969 so we can help determine if a Short Sale is right for you. 

Step 2 and Step 3 happen at the same time. Short Sale Package
Lenders require specific documentation, and each lender is a little different. Normally the first required document is a hardship letter, along with an authorization form which allows us to speak with your lender. At this time we will start marketing your property on the MLS (Step 3). There is other documentation that we will be asking for during this time per your lenders “Short Sale Package” requirements. 

Step 3: Market the Property
We market the home to potential buyers through various channels, including California’s Multiple Listings Services (MLS). You are allowed to live in the home during the short sale process. This step usually takes between 15 and 60 days. 

Step 4: Negotiation of the Short Sale
Once there is an offer on your property, we submit the offer and all of the paperwork (Short Sale Package) to the lender and negotiate the deal. Negotiations can take time but remember you are allowed to live in the home until the entire deal is complete. During this time we also request monetary funds for relocation assistance from available government and lender programs. This step usually takes between 10 and 30 days.

Step 5: Finish the Transaction We receive Short Sale approval from the lender to the next step is to open escrow and close the transaction. Escrow time is usually around 30 days. The total time to process a short sale is normally between 2 and 6 months.

Now that you have a better understanding of the short sale process.  The next question is: Do you qualify for a short sale?  Click here to read the article.