If you have any questions regarding the short sale process call me today (585) 721-3010 or email me at thejeffscofieldteam@gmail.com

Short Sale FAQs

1. The sale is subject to written approval by the mortgage servicer, as well as the seller and mortgage lender’s approval.

2. Approximately how “short” the sale will be based on the estimated total mortgage debt through the sale closing (include anticipated past due amounts), minus the estimated sale proceeds.

3. A short sale is a workout, and the seller owes the entire short amount.

4. They may be required to participate financially in exchange for an approval of the short sale.

5. They must demonstrate that a financial hardship exists.

6. They have the right to negotiate or decline participation if the servicer’s approval terms are not acceptable.

7. A person’s credit rating is a powerful measurement in today’s society, and a short sale is a better outcome than a foreclosure from a credit perspective.

-What can an agent do to increase the likelihood of a successful short sale after a purchase offer has been made?

1. The servicer must comply with various third-party requirements, so it’s important to follow the servicer’s instructions carefully for submitting documentation, and do so in a timely manner.

2. Follow up with the servicer often, but keep in mind they are dealing with unprecedented volumes of requests.

3. Keep a log of all activities related to submitting and finalizing the sale, including dates, results of communications, and names, titles and contact information for everyone you deal with.

4. Retain copies of all documents submitted and received.

5. Upon receiving the servicer’s written approval, review all terms and conditions promptly to ensure they were as negotiated and can be met. Some key terms to review are:

a) The authorized net proceeds figure, since the sale will likely be rejected if the servicer does not receive this amount.

b) If the seller is required to contribute cash at closing.

c) The specified settlement date.

d) If the seller is to net zero, since this means no funds can go to the seller.

e) If a promissory note is involved, to be sure it’s executed and delivered as needed and remains unaltered.

f) If the formal, written approval letter matches any pre-negotiated sale terms. If it does not, promptly outline to the servicer why the terms are not appropriate and provide supporting documentation.

6) Communicate the servicer’s approval terms to participants, but only share necessary information relative to the sale.