: the short sale process
STEP 1 - The Decision: The decision to sell your unit, engage our services and move on with your life must be made by you! We appreciate that this may be an emotional situation, however, the only way to have closure and gain peace of mind, is to make the decision that you have done all that you can and that the circumstances of this investment are not within your control.
STEP 2 - Engaging Our Services: You will engage SSS National to complete all aspects of the Short Sale on your behalf by signing our Engagement Agreement which details all of the terms and conditions of our relationship, including the scope of our services and our compensation.
You will then provide us with the documents that are required by your lender:
Click on this Link for a list of required documents
Lenders have strict requirements and a rigid system for processing a Short Sale. Think of a Short Sale as a Mortgage in Reverse. The same documents needed to secure a mortgage are needed to unravel one. Once you provide us with your documents, we will process all of the paperwork and handle all of the negotiations with your lender
Some of the documents are unique and most likely, unfamiliar to you. One such document is a Hardship Letter. There are several ways to discuss the hardships of your situation. For some it might be financial hardship, for others, an investment that is so far underwater there is no way to recover. We will assist you with the Hardship Letter
In addition, you will sign a Power of Attorney so that SSS National can negotiate with your lender and the condominium association on your behalf
STEP 3 - How We Process Your Short Sale: From this point forward SSS National will handle all of the paperwork and negotiations with your Lender.
- We will submit your Power of Attorney to the lender so that we may negotiate on your behalf.
- We then submit a package including a Listing Agreement and Purchase Contract. At this time we also submit a Settlement Statement, or "HUD-1" that includes all costs that will need to be paid from the proceeds at the closing, including but not limited to, Association Dues, Taxes, Title Fees, and Realtor Commissions.
(Please Note: the Listing Agreement we submit is between yourself and the Florida Real Estate Broker. This is required by the lender to list the property and reflect such as a posting on the Multiple Listing Service or "MLS". The commission is paid from the proceeds of sale).
The unique aspect of this is that the Listing Agreement and the Sales Contract are posted simultaneously.
The Sales Contract is what distinguishes SSS National from all others in our field. We not only negotiate your short sale with the lender, we begin with a Sale Contract that provides for an All Cash Purchase! This is great for the lender and for you!
STEP 4 - The Lender's Process: Now the lender process begins. Please note that here are certain time frames where we are just waiting the allotted time the lender allows for the loan to be reviewed.
At this point the calls and letters you are used to receiving will begin to diminish. You can answer the calls and clearly state to whomever is calling, "We have chosen to pursue a Short Sale"
- The lender will continue to require updated pay stubs and bank statements throughout this process as this is required for the lender's procedures and protocol.
- The lender orders what is called a Broker's Price Opinion or "BPO". Like an appraisal, a BPO helps the lender establish the current market value of your unit.
- Once the BPO is complete with the lender, they respond to SSS National regarding the Short Sale request. The lender can accept the price as it is, or request a counter offer. A counter offer is usually only requested if the purchase price and BPO are not compatible.
(Please Note: because the purchase price for your unit under the Sale Contract from our investor is based upon comparable BPO data that we reviewed and analyzed prior to submitting same during STEP 3, the lender's BPO and our offer are typically compatible).
STEP 5 - The Short Sale Closing:
- During the entire process, the title company has been preparing your file for closing. That way, when the lender accepts your short sale and the title company is given your closing information, they can act quickly.
- At this point, the title company will send you a specific form of Power of Attorney so that you can authorize SSS National to close on the Short Sale of your unit.
Then, closing funds and your life begins anew. No more phone calls, letters, mortgage payments or association dues!
STEP 6 - Relief: Now that your MORTGAGE IS SETTLED IN FULL and the balance is ZERO, you can move on with your life with peace of mind.
Please Note: Individual results may vary based upon your circumstances. We do not guarantee the outcome of our efforts. We do not guarantee that the debts related to your property will be lowered by a specific amount or percentage, or that a Short Sale of your condominium unit will be effectuated within a specific period of time. We do not assume your mortgage debt, make monthly payments to your lender or provide tax, bankruptcy, accounting or legal advice or credit repair services. Please contact a tax professional to discuss the tax consequences of a Short Sale. Read and understand all SSS National Short Sale Solution Program materials prior to enrollment.