The Short Sale Process
1. Offer Submission
Offer is submitted to short sale lender after being negotiated with seller. Included in the offer are:
- Seller Docs:
- Financial Statements
- Authorization
- Do Not Call
- Listing agreement and Associated listing documents
- MLS Print Out
- BPO
- Buyer Docs:
- Purchase agreement
- Pre-approval letter
- Proof of funds to close (if applicable)
- Copy of Deposit Check
- Buyers Short Sale Addendum
No package shall be considered complete without the items listed above plus some additional items not listed.
2. Appraisal
Buyer can wait until acceptance by lender is received to proceed with their appraisal and home inspection. Contingencies will need to be released as per contract.
3. Verbal Decision
Lender will accept or decline offer verbally with agent. This process can take anywhere from 90 to 120+ days. The lender may or may not counter the price and terms. The offer is sometimes either accepted or declined. EXPECTATIONS NEED TO BE SET AND UNDERSTOOD BY ALL PARTIES.
4. Acceptance Letter
If offer is accepted, lender will send an acceptance letter based on agreed terms and set a close of escrow date. The terms usually cannot be altered after the fact and most transactions are as-is with a 30 day or sooner close date given.
5. Release Contingencies
Buyer is to release contingencies as per contract and escrow is to close as soon as possible after acceptance or by close of escrow date set forth by the bank.
6. Late Fees
If the agreed upon close of escrow date is late due to any fault of buyer, a fee set by the lender usually will be assessed as well as our negotiation fee schedule (see negotiation disclosure).
7. Resubmission
If offer is declined, buyer can re-submit a higher offer for consideration. This process should take considerably less time, usually within 5 to 10 business days.
8. Patience
With the entire process possibly taking up to 90 to 120 days or longer it will be essential that we have patience and cooperation from all parties. This can help make the process considerably shorter and smoother.
9. Contributions
There is a possibility the banks will ask for contributions from the seller(s) to help facilitate the closing and offset some of their loss.