For Sale By Owner’s are do it yourselfers and although it’s not recommended you can do a short sale by yourself. Here at Short Sales Atlanta we believe in the “do-it yourselfer” attitude. So here’s a check list of the things that we usually take care of.
Each potential short sale is reviewed on a case by case basis.
The approval of a Short Sale in a specific case can only be discussed between the homeowner (seller), or their agent (us or whoever you sign an agreement with) and the lender.
Steps to Receiving Approval for a Short Sale.
- The borrower or their authorized Agent must contact lender. You may have to wait up to 2 weeks to get your file re-assigned to the LOSS MITIGATION department.
- May take numerous calls and long wait times.
- The lender explains the Short Sale process and requests needed documentation that must be faxed to begin the process. Typically, that includes:
- A Hardship Letter
- Proof of Actual Hardship
- Typically the lender would prefer to talk to you AFTER you have a buyer. Need one? Visit ShortSaleBuyers.com
- A Pre-liminary HUD on what you would like the bank to take (instead of what you owe)
- Typically the lender would like to see that the home is listed. You might contact the short sale expert in Atlanta, Joshua Jarvis (me).
- Fax Documentation by to the Lender
- In up to 2 weeks to 20 days, lenders receipt of the faxed documents, the Short Sale Department orders the interior appraisal and provides the Agent with a confirmation of receipt.
- Upon receipt of the appraisal, the lender will conduct an analysis to determine if the Short Sale Offer is aligned with Market Value.
- Negotiations ensue:
- May be asked to sign a promissory note.
- May be asked to change the fees on the HUD statement.
- May be asked to provide more personal financial information.
- Typically at the close of negotiations, you will still have to wait a few days or weeks to get a WRITTEN approval.
- Upon Approval, make sure that your home “closes” on or before the actual closing date. Closing after the proposed closing date will cause the process to start over to step 5.
It’s worth pointing out that most banks won’t talk to you without an offer of some sort. It’s also worth noting that the collections department may be asking you for small amounts of money. That’s a clear tip off that you are not talking to the right department.
