The Short Sale Process
Short Sale Facilitators have full-time short sale departments specifically created and dedicated to coordinating short sales for Realtors and their clients. The facilitator's process begins in the very early stages: once the property is listed, the facilitator starts corresponding with the short sale lender.
The short sale facilitator's team relies on the diverse professional backgrounds of it's members: mortgage, title insurance, real estate, marketing, and business that total more than three decades.
For the day-to-day tasks, the short sale team utilizes an innovative computer software system designed for short sales, it's extensive database of short sale lender contacts, and most importantly, the establishment of the relationships with individual short sale negotiators.
For each mortgage loan to be shorted, the coordination process involves the following steps:
1. Obtaining an O/E and name search (before listing).
2. Verifying foreclosure sale date and bankruptcy information (before listing).
3. Authorizing third parties (after listing).
4. Organizing and preparing systematically the short sale file (after listing).
5. Preparing the estimated HUD (after offer).
6. Submitting the short sale file. Because short sale lenders are inundated with short sale offers, many
files require several submissions until a complete file is confirmed by the short sale lender.
7. Confirming receipt of short sale file.
8. Monitoring the short sale file until assigned to a negotiator. Typically, this step usually involves phone
calls to the lender at least twice a week during the first 60-90 days (the actual length of time may vary,
depending on the individual lender).
* A processor ensures all of the documents are complete and up to date.
* The processor transfers the file to the 1st negotiator to determine if the offer is viable. Type of loan,
investor, and other specifics are identified in these early steps, as well.
* The 1st negotiator then transfers the file to the 2nd negotiator at the loan servicing company for
review to determine the amount the various parties will net. This phase also is when the file is
transferred to the private mortgage insurance company for its review and decision (if applicable) -
and then on to the investor for it's review and decision, as well as any additional mortgage lien
holders, again, if applicable.
* A decision on the required net for the investor, etc., plus approval of any seller concessions, real
estate commissions, closing fees, etc., all occur at this phase.
9. Facilitating the details of the transaction between the parties in the short sale. At this phase, communication with the
short sale lender intensifies to ensure the best scenario possible. Ultimately, the seller is the individual who decides to
accept or reject the offer from the short sale lender: a) A 1099 taxable-income status, b) An unsecured promissory note
for the deficiency amount, or c) A deficiency judgment for the deficiency amount.
