Hi Guys,
I am new to this forum, but very happy I found it. I would like to know in depth steps to start a short sale. I have already done two medications, and I still cannot afford to keep this house. The house was rented out through a property management company, the tenants are moving out this month. The house was never intended to be rented out, but I got a new job in another state so I had no choice. I just need to know how I can start the short sale process. I am one month behind now. I have a real estate agent that deals with short sales, so I think we could get this house sold. Please help me with the steps for this process. Should I send a letter first or do I call them and request a short sale? Im so lost! Im getting pretty DESPERATE, please help!
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Thanks
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Pocahontas,
Peace be with you. You are on the right tract. There's a lot of Short Sale steps that Moe has put together in this site and there's a lot of Countrywide Short Sale Seller Success story in this site and also there's one in Walking Away, there's also a Short Sale tips there on page 2.
Let me just summarized to you on how short sale worked for me as a seller.
I have hired a real estate agent that knows Short Sale. Thanked God he lead me to this loansafe.org, for Moe, Cat, Profesfor Shays and Andrew that gave me tips, information and tricks how to email Countrywide.
I have given authorization letter to my lender authorizing my agent to talk to them. You need to price your home right to attract a buyer. If you go to realtors.com and zillow.com to find out the selling prices of your homes and to give you an idea the selling prices in your area. For example, if the selling prices in your area is $300k, you have to lower it down to $290k to attract a buyer. Once a buyer made an offer, your agent will make a Short Sale package, including HUD1, listing contract, and other requirements of your lender to be sent to your lender. You need to write a financial hardship letter to your lender explaining why you are in hardship, an example of hardship letter is to your left, see Homeowner's Tool Box and click on Example of Hardship letter.
It takes 4 months to 10 months before a short sale is approved by the lender depending on the lender. Countrywide is my lender and it took me 2 listings, 7 buyers backed out and 10 months before Countrywide Home Loans approved my short sale and waited another 1 month and 10 days for escrow to close.
Make sure your agent and you keeps emailing, talking, mailing and calling your lender or negotiator. When your lender receives your request, they will assigned a Negotiator and he will order an appraiser called BPO, Broker's Price Opinion. Make sure that your agent negotiate to your lender that there is no cost to you and that your buyer pays their own closing costs. Your agent can ask your agent's buyer to make additional offer specifically for the buyer's closing cost and make sure that the lender's knows and agrees to it.
Let's say that their offer is $290k, the buyer will make additional offer of $8k to cover his closing costs. The seller does not pay the agent's commission, the lender pays the commission, Countrywide Home Loans pays 5% commission to the agent.
I hope this helps.
Thanks and God bless.
Faith
