Step #1: Authorization to Release Information
This first step gives us the authorization to contact your lender(s), to discuss your situation with them, to notify them of our progress, and to attempt to delay any foreclosure activity on your file.
Step #2: Short Sale Package
At the time of accepting an offer and opening an escrow, we must submit a complete package to your lender for review. That package includes, but is not limited to:
- Purchase Agreement, including proof of buyer’s ability to purchase your home
- Completed Financial Package supporting your need for short sale
- Hardship letter explaining your need for short sale
Step #3:BPO (Broker Price Opinion)
This is a critical step where your lender(s) sends independent, uninterested broker(s) or appraiser(s) to give an opinion of the value your property.
Step #4: The Approval Process
At this point in the process, your lender(s) has all the information the need, but must negotiate the many levels of investor and mortgage insurance requirements to determine if approving your short sale makes the best financial sense for them.
Step #5: Closing
Upon receipt of the approval, your lender will layout acceptable terms of the sale and a deadline to for it all to happen. At this point, the title company and escrow officer will handle the actual transfer of title, disperse funds, record the sale, and close the transaction.