After reviewing all of your options, going over the short sale process, the paperwork involved, and the time frames you are working with, you have decided to apply for a short sale on your Irvine home. You have chosen an experienced short sale realtor to work with so that you gather all of the necessary paperwork to submit to your lender, market your home for sale, and ultimately obtain an offer at “market value”!
If you have been reading my previous short sale post (Part 1 & Part 2), you know that meticulous collection of the necessary paperwork is crucial. If you haven’t read this post, please take a moment to refresh your memory.
Once all the paperwork has been submitted to your lender(s), the lender will open the file and you will be in Phase 1 of the short sale process. Assuming that your realtor has maximized the exposure of your home and priced it aggressively, you should be receiving an offer within the first 2 weeks of the home being listed for sale(there is really no time to over price your home as time is of the essence). Your realtor should know at this point what additional/supporting documentation to send to the lender so they can begin review. Once the lender receives the offer for purchase and all supporting information, they will assign your file to a short sale negotiator.
Once you have been assigned a short sale negotiator, you are in Phase 2 of the short sale process. This process requires minimal work on your end, however it is recommended that your realtor follow up at least once a week to see if things are moving forward smoothly(pick a day in the week and call that day every week). In addition it is a good idea to make sure that the short sale department has your realtors contact information just in case they need any new or updated documentation. Through out the phase 2 process, the negotiator will analyze the offer andpackage the information in a neat package to send to the investor for final review. Throughout this process, you may be required to provide updated financial information. In addition, during the 2nd phase of this process, the bank will order their own Broker Price Opinion (BPO), as supporting information to ensure the bank is recieving true “market value”. Once the BPO is in, the negotiator passes this file over to the investor and you are now in Phase 3!
Phase 3 also requires minimal work on your end, however the realtor should continue to follow up with the short sale department to ensure the process is moving forward smoothly. If the investor likes what he/she see’s, congratulations you will receive an approval. 9 times out of 10 you will receive a counter offer. There are many fees that the lenders are not willing to pay for, therefore you will have to negotiate with the buyer and come to an agreement.
Although it sounds easy enough, don’t be fooled, this process usually takes an average of 6-8 months. All you can do is be as cooperative as you can, make sure you send complete packages when required, and aggressively follow up…..oh and a positive attitude doesn’t hurt:)
For specific questions on the short sale process or if you are considering applying for a short sale, please email Robert for more information or to set up a free private consultation.
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