Every short sale is a unique transaction, the following outlines the typical steps in a short sale.
Homeowner Defaults on Payments
- Homeowner misses payments
- Lender initiates collection efforts
- Homeowner consults with Short Sale expert and determines short sale is best option
- The earlier the short sale is started, the higher the success rate
- Homeowner works with expert& determines value of property
- If total owed is less than property value, short sale is best option
- Homeowner lists property for sale
Submit Short Sale Package
- Gather and complete necessary financial information called a short sale package
- Lender reviews package to determine eligibility
- Lender orders a Broker Price Opinion (BPO) to determine value of property and minimum sale price required
- Lender assigns a negotiator
Negotiate Short Sale/Complete Sale of Property
Lender agrees to accept offer, final details are negotiated
Lender reviews and agrees to final HUD-1
