Are there Any Important Steps I Need to Know to Complete a Successful Short Sale?
Hello there, I’m Shawn Polston with Keller Williams Realty and one of Tucson’s leading short sale teams. One of the things that I wanted to go over today is just a general overview of the short sale process. The way the short sale process begins can differ based on your situation. Sometimes the bank reaches out to you by giving you a call or sending a letter recommending a short sale as the right thing for you to do.
A short sale is when someone owes more on their house than it’s worth and they need to sell the property. It could be a job loss, divorce, death in the family, or job relocation. It’s good to communicate with your bank, but one of the first things you are going to want to do first is find a competent real estate agent to help you with that transaction. There always seems to be issues or hurdles that arise in the short sale process so it’s best to find someone who knows how to navigate that maze.
The next step after identifying that agent is to set up an appointment and meet with the agent. They should be able to tell you if you should also meet with a CPA for other financial advice. The next step in the process is to get your financial package together. There are certain documents a lender is going to want to see when you are doing a short sale. It is typically two months bank statements, two years tax returns, a month of paystubs for all borrowers, any letters proving unemployment or a letter about any government benefits received. They will also want a form with income vs. expenses and a hardship letter explaining what is going on in your situation.
Once you get the paperwork complete it’s a good idea to put the house on the market. The sooner you have an offer, the better the situation is. Depending on the bank, it can take anywhere from a month to three months to process that information. It varies by lender and loan type. After the processing time, the bank comes back and gives the approval letter. It is important to look over the approval letter to make sure the numbers match and they agree to the same amount the buyer’s offer. It’s good to get the title company involved at this point to check all the numbers. Then you will want to look at what the approval letter says about the debt. The lender is either waiving the right to pursue a deficiency balance. If it doesn’t say that, your agent should go back to the lender and ask them to waive the deficiency.
Again, I’m Shawn Polston with Keller Williams Realty, one of Tucson’s leading short sale teams and I’m here to help answer any questions you have about the short sale process. Please contact me today. Thanks and have a great day.
