The Short Sale Process begins when you sign a listing agreement to list your home for sale. At this time, your real estate agent will collect a number of personal documents that will be sent to your mortgage lender as part of a short sale package.
There are several steps involved in the short sale process.
Step 1: Marketing your home
Your home will be shown to both investors and traditional buyers. During this process, your home may be shown several times a day in some cases.
The goal is to get the highest and best offer in the shortest time possible. Those viewing or calling to view your home are traditionally instructed not to bother you with questions regarding the short sale so as to not put any additional stress on you.
Step 2: The First Offer
Once an offer is received on your property, you must sign the Purchase Agreement (this should only take 5 minutes).
Although you do need to sign one offer, your property can attract multiple offers. Subsequent offers may be submitted to the lender(s) for their review and you will not need to sign each and every offer received. Towards the end of the process, when the lender accepts an offer, you may need to sign that offer in order for us to open escrow.
Step 3: The Negotiation Process
Once the offer(s) are sent to the lender(s), the actual Short Sale process can take anywhere from 4 weeks to 4 months. This timeline varies with each lender.
To keep you informed during the negotiation and processing of your transaction, your real estate agent will call you regularly.
After the lender reviews the Short Sale package, a BPO (Broker Price Opinion) will be ordered by the lender. This is similar to an appraisal and once the lender receives the report, they will usually make a final decision shortly thereafter.
The lender orders the BPO so they can figure out what their net proceeds will be (how much of a loss they will be writing off). Your property will remain ‘Active’ or ‘Contingent’ on the MLS until the lender accepts the offer.
Please be patient throughout this process. At times you may feel things are going slowly, but remember this is not a regular transaction and can take longer to complete.
Step 4: The Accepted Offer
Once an offer has been approved by the lender, your real estate agent will notify you that we are going to proceed to close the transaction.
The lender may demand to close escrow anywhere from 10-30 days, so be prepared to move. If the buyer does not close by the lender’s deadline, the next highest bidder in line may be accepted.
** If the buyer(s) cannot perform and close on time, the lender may decide to proceed with foreclosure thus severing the opportunity for all parties involved to complete a successful transaction. **
Step 5: The Close of Escrow
You, as the seller, will be instructed to sign seller documents at the escrow office. Please bring with you your I.D., all keys, garage door openers, and a good attitude. You and your agent will celebrate your new freedom from this financial burden and stress.
Step 6: Your Financial Freedom
Keep all of your copies of the documents pertaining to this sale in a safe place. Call your real estate agent with your new forwarding address so s/he can keep in touch with you throughout the year and offer you assistance in preparing yourself for future success.
We can help sellers throughout San Diego North County and beyond to avoid foreclosure and walk away from their home without having to pay a penny, and without having their credit ruined by foreclosure or bankruptcy.