What is a Short Sale?
A short sale is a sale in which the lender agrees to accept a payoff which is less than what is currently owed on a given property. The seller has to qualify for a short sale with their lender by providing proof of hardship.
What’s the procedure?
- The seller signs a listing agreement subject to selling as a short sale. Third-party approval is required.
- We market the property to find a buyer who makes an offer (which will be less than the amount of the mortgage)
- The seller accepts the buyer’s offer to buy the property (subject to lender approval).
- The seller completes a short sale package that includes detailed financial information about the seller’s hardship. We present the offer and short sale package to the seller’s lien holder (mortgage company, bank, etc.). It typically takes 45-60 days to get a Short Sale Approval from the lender once the offer and package are submitted.
- About 30 days from Lender Short Sale Approval, the transaction closes when the buyer delivers the funds, the lender then releases the lien, and the seller delivers the deed (transaction completed).