Short Sale Route for Sellers 4 Grand Rapids Short Sales

Exploring the Short Sale from Start to Finish. What sellers and buyers need to know:

Your home is now listed and active on the MLS. The agent has created a marketing plan and priced the home aggressively with in market value range. The offer and/or offers are coming in, you sit down with your agent and pick the offer that works the best. From there you submit the package below to start the process the bank.  

• Offer with all signatures
• Buyer Pre Approval Letter
• Copy of Buyer earnest check
• Buyer signed Short Sale Disclosure
• Seller Short Sale Package (already complete)
• Up to date financial Information from the seller
• HUD this is a form with all the numbers as related to the offer submitted

Off the file goes:

Once the lender has received all the information above they assign the file to a negociator. He or she  reviews all aspects of the file. All required paperwork must be complete without errors. 

Come on…You need what?

During the review process it’s not uncommon for the negociator to make request for additional information from both the seller and buyer. In most cases we’re asked to hurry up and produce the additional documents at lightning speed only to turn around and have the bank move at a snails pace. Unfortunately, it’s the nature of the business and it’s very important not  to get worked up about the requests and just keep moving forward.

Broker Price Opinion or BPO:

In most instances, once all the information above has been reviewed by the negociator, they order an opinion of price. They submit the opinion to the lender. From there, typically the process from BPO is 6 weeks to 3 months of waiting while the Loss Mitigation works  the file. You might wonder? What takes so long for the approval process to come? Most loss mitigators are working on hundreds,  if not more,  files at one time.

Hang on and why?

Often buyers become so frustrated with the wait they retreat. In most cases, if they only held on for a while longer the outcome could have been different. The benefit for the buyers to hang on is purchasing a great home at a very competitive price! It’s very important for a good buyers agent to coach their buyer clients as to exactly what they can expect in the short sale process. Buyers shouldn’t make any plans to move, and it’s very important to have a back up plan. Once the short sale approval comes the clock starts for the buyer and his or her financing. Most buyer financing is FHA, this processing can take 45 days to complete.

Next in this series:

Short Sale Approval to Closing.