Overview of Short Sale Process By local expert.

1. Robbie McCarty
Keller Williams Realty
Robbie.YourKWAgent.com
Cell: (757) 374-0005
Office: (757) 673-7488
Fax: (757) 673-7499
robbiemccarty@gmail.com
– Home Selling Services Information –
Your Complete Guide To The
Short Sale Process – Selling
Your Home With No Equity

2. What is a Short Sale?
A short sale is when your lender allows
you to sell your home at a loss, and
accepts less than what you owe on the
property as a payoff
The reason lenders allow home owners
to do this is because they do not want to
foreclose on properties. They would
much rather allow the property to
transfer to a new buyer, without having
to take ownership.
A short sale is really a win-win for you
and the lender
General Short Sale
Information

3. Benefits of a Short Sale
 You avoid foreclosure or no longer have
to own a home that is a financial drain
 You avoid the negative affects that
bankruptcy or foreclosures have on your
credit
 You avoid the costs of selling a home
with negative equity
 Your lender recoups the market value of
your home
 Your lender no longer has an at risk
loan and does not have to take ownership
in case of foreclosure
 You can move on with your life instead
of feeling like you are stuck in your home

4. The Short Sale Process
Steps to Completing a Short Sale
1. Find an experienced short sale Realtor
2. Fill out listing paperwork with Realtor
3. Start collecting your financial
documentation for lender
4. Realtor will market home for sale
5. Receive an offer on your home
6. Agent reviews contract and structures it in
your best interest.
7. Agent sends offer to lender with your
financial package
8. Lender reviews package, order BPO’s and
terms of sale are negotiated.
9. Buyer completes inspections and closes on
home

5. Communication
The short sale process requires the buyer to
wait up to 60 days for bank acceptance
so proper communication is critical
 I will update you every time the home
is shown
 When we have an offer I will communicate
with the lender twice per week
 I will communicate each lender
correspondence to you
 I will communicate twice per week with
the buyer agent
 I will communicate with the BPO agents to
ensure we receive the right valuation

6. Documentation Needed
1. Hardship letter signed and dated
2. Paystubs from last month
3. Last two years of tax returns and
all schedule forms
4. Last two months bank statements
all accounts with name
(Not online statement)
* I will let you know as additional
documentation is needed

7. Short Sale FAQ
Why would my Lender want to allow a Short Sale to
help me?
The reason is simple; a short sale often has a better
return on investment to the lender than a
foreclosure. The average savings a lender sees from
a short sale property compared to a foreclosure
property is $14,000. Not only does the lender
receive this savings, they are also paid on the loan 6
months earlier than in the foreclosure process. This
allows them to collect and cash-out earlier than they
would in a foreclosure. Plus, lenders spend a great
deal of money with attorneys to complete the
foreclosure process. Lenders created the short sale
process as a foreclosure alternative for those
reasons. The incentives to perform a short sale on
your property are in place to motivate you to
participate.
When should I start my Short Sale? It is best to
begin a short sale when you realize you can no
longer afford the mortgage, so that your property
can be marketed properly and you can receive a high
offer. The earlier you start, the higher our likelihood
of success. Contact us to see if you have enough
time.

8. Short Sale FAQ
How long does it take for you to complete a short
sale once we fill out the paperwork? Typically
transactions are completed within three months. If
you have a foreclosure sale date approaching we will
attempt to complete it sooner. We have often found
buyers quickly and have used our relationship with
the banks to push back your foreclosure sale date.
Why should a lien holder accept less than the
outstanding debt? After the lender does an
appraisal on the property and discovers that the
value is less than the payoff, the lender will decide if
it is worth further legal actions and cost. A business
decision is made to either continue foreclosure
action or accept the short sale offer.
What is the difference between a Satisfaction of a
Lien vs. a Release? A satisfaction is a total release
from the debt owed. A release is when the lender
releases the lien from the property to allow the
home to be sold. (The borrower may still be required
to repay the balance of the debt.)