The short sale process can vary, but it will generally work as follows:

1) The lender is contacted, typically by a Realtor or third party negotiator hired by the Realtor to discuss the possibility of a short sale and to determine the lender’s process for completing the sale.

2) The seller issues a letter authorizing the release of personal information about the loan and the property to the Realtor.

3) The lender will review a settlement statement provided by the Realtor, which will indicate the proposed selling price, remaining loan balances and itemize all expenses, including fees and expenses associated with the closing.

4) The seller will complete a "hardship letter," which will detail and explain all financial difficulties. Lenders will usually want to validate the seller’s financial situation by looking at bank statements, investment accounts, along with examining pay stubs and other financial records.

5) The lender will then look to the Realtor to provide a price opinion by examining the condition of the house and the market value of comparable properties.

6) The lender will then want to scrutinize the purchase agreement to determine if all amounts are agreeable and the purchase agreement has been completed properly.

Because of the documentation required, the short sale process can be lengthy. But if done correctly, it can work well for all parties involved. The more experienced the Realtor is with the process and preparing all the required documentation the faster and smoother the process will be. The lender avoids the uncertainty of the foreclosure process, the seller avoids a foreclosure on his or her credit report (along with potential bankruptcy).

Considering the complexity of the short sale process, you must be educated. If you are considering a short sale, make sure that you discuss your situation with a competent Realtor.  The more educated you are on the process, the easier the transaction will be.

Short Sales will:

• Help remove your mortgage debt obligations
• Protect further credit damage
• Stop the foreclosure process within days
• Present a solution to the lender

Why Short Sale?

A short sale is the best option for all homeowners who are upside down on their mortgage, unable to make their mortgage payments, facing foreclosure and looking for a way to stop the foreclosure process on their home. Many homeowners believe that the only option is to let the bank foreclose and then try to begin rebuilding a new life with a foreclosure on their credit report, this does not have happen to you. We are here to help you prevent foreclosure and get you on the road to recovery.