STEPS TO A SHORT SALE
- Provide a Letter of Authorization
for The Nazaroff Team, for permission to speak with your lender on your
behalf. The letter should specify the property address and loan
number. We will also need the last four digits of your social security
number for verification with your lender. You or we will ask the lender
if they will consider a short sale before beginning.
- We will place the property on the market
for fair market value. Most lenders will only consider offers that are
at least 80%-95% of what the property appraises for, based on their
independent appraisal, and the criteria of the end-investor on your
loan.
- When we get an offer, we will ensure that it states it is "contingent on seller's mortgage holders' approval".
- You may counteroffer the buyer at this step, as we don't want to send an offer to the bank that we think will be rejected.
- We will package up the offer with the following documents and fax or express mail them to your lender:
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Buyer's pre-approval letter
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Hardship letter which explains why you need a short sale
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Financial worksheet itemizing your income and expenses
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Most recent tax returns
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Most recent pay stubs or quarterly profit and loss if self-employed
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Most recent bank statements
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Copy the listing agreement
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HUD-1 Settlement Statement and other documents
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Expect to wait 60 to 90 days for
a response from the bank. They will be ordering an independent
appraisal or Broker Price Opinion on the property to ensure the offer
is for fair market value. If the value is higher than the offer
amount, they will counter-offer at the appraised price. The buyer may
choose to comply, to stay firm, or to come up at this point.
-
If
there are two lenders involved, or a Private Mortgage Insurance company
(PMI), then we will facilitate the negotiations between them focusing on
a fully approved sale on your behalf.
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A lot happens behind the scenes, rest assured, we will be following up on a successful sale for you every step of the way.
Note:
Different lenders have different procedures for short sales, thus the
required documentation may vary slightly from one lender to another.
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