Despite their name, short sales are not short. However, as the number of short sales rises, the banks have begun to refine the process in hopes of simplifying and shortening them. It is important to note that your short sale can take anywhere from 30 – 120 days, and some can even take over a year to be completed. The below is an estimated time frame and simplified explanation of the short sale process.
What will LMS do for me?
Short sales bring obligations to all parties and we’re here to lighten that load. Our step-by-step approach for homeowners, real estate professionals and buyers makes the short-sale transaction occur in a timely and proficient manner.
What we do: assist in receiving a qualified buyer and ratified contract, review contracts, review full property title, document preparation, monitoring bank’s progress weekly, negotiate counter offers, update all parties weekly, assist with closing/settlement and every task in between.
What we don’t do: foreclosure prevention, assist in obtaining keys to get into vacant homes, credit repair, credit counseling, assist in power of attorney, draft estate documents, or pull title (as we are not a title company).
OUR STEP-BY-STEP APPROACH & ESTIMATED TIMELINE
- Qualify Short Sale Candidate
- Establish listing agent relationship and obtain listing agreement
- Short Sale Package sent to Seller for documentation gathering
- Initiate 3rd Party Authorization and begin authorization process with lenders
- Prepare 1st half of Short Sale Package while waiting for a sales contract
- Review all potential sales offers, upon acceptance, receive ratified contract
- Generate Preliminary HUD1 statement(s); Title Company pulls title to uncover all liens and judgments against the property.
- Prepare 2nd half of Short Sale Package and submit to lender(s)
- During the next 30 days, the file is monitored weekly until a negotiator is assigned and BPO/Appraisal has been ordered. File is under review at this point.
- Weekly updates are sent out to Realtors on both sides
- Communication is the key to our success
- Post 30-day period; Bank Negotiator is assigned and BPO/Appraisal is complete. Terms of the Counter Offer received from lender(s) within next 15 days.
- Discuss terms with all parties as to accept or counter lender(s) offer
- Adjust terms of short sale that is acceptable to all parties
- Duration to determine acceptable terms can take 3-15 days depending on the number of counter offers.
- After all terms have been accepted, 5-10 business days to receive Formal Written Approval from lender(s)
- Buyer’s are expected to close within 25 days after written short sale approval