Short Sale Expectations and Timeline
Marketing your home:
Your home will be shown to both investors and traditional buyers. During this process, your process may be shown several times a day in some cases. The goal is to get the highest and best offer in the shortest time possible. Those viewing or calling to view your home have been instructed not to bother you with questions regarding the short sale so as to not put any additional stress on you.
The First Offer:
Once an offer is received on your property, we will schedule an appointment for you to come in and sign the Purchase Agreement (this should only take 5 minutes). Although, you do need to sign one offer, your property can attract multiple offers. All offers will be submitted to the lender(s) for their review and you will not need to sign each and every offer that we receive. Towards the end of the process, when the lender accepts an offer, you will need to sign that offer in order for us to open escrow.
Once we have sent the offer(s) to the lender(s), the actual Short Sale process can take anywhere from 4 weeks to 4 months. This timeline varies with each lender. Some lenders can approve a short sale in a week. To keep you informed, I have developed a system which will enable you to get updates from me on a regular basis without actually having to call me. First, you will be able to call any time day 916.480.8371.
The second way to get an update is to send me or my partner an email with your property address and question in the subject line. (YuriMR@Kw.Com or CSaizan@Kw.Com). Due to the high volume of calls from prospects, clients, agents, escrow offices and lenders, it is almost impossible for us to respond/return calls same day. In many cases we are not able to return calls personally, since I’m spending most of my time negotiating a successful transaction with your lender(s).
Please understand that we arenot intentionally waiting to return phone calls and we are not ignoring your messages, it is simply not humanly possible for us to return all my own calls in a timely manner and still move forward to a successful transaction. Know that we will return all calls within 24hrs to give you an update.
After the lender reviews the Short Sale package, a BPO (Broker Price Opinion) will be ordered by the lender. This is similar to an appraisal and once the lender receives their report, they will usually make a final decision shortly thereafter.
The lender orders the BPO so they can figure out what their net proceeds will be (how much of a loss they will be writing off). Your property will remain ‘Active Short Sale Contingent’ on the MLS until the lender accepts the offer. Please be patient throughout this process. At times you may feel things are going too slow, but remember this is not a regular transaction and can take longer to complete. Also, please note that weeks may go by before the lender gives us any real updates.
The Accepted Offer:
Once an offer has been approved by the lender, we will notify you that we are going to proceed to close the transaction.
The lender may demand to close escrow anywhere from 10-30 days, so be prepared. If the buyer does not close by the lender’s deadline, the next highest bidder in line may be accepted.
** If the buyer(s) can not perform and close on time, the lender may decide to proceed with foreclosure thus severing the opportunity for all parties involved to complete a successful transaction. **
The Close of Escrow:
You, as the seller, will be instructed to sign seller documents at the escrow office. Please bring with you your I.D., all keys, garage door openers, and a good attitude. We will celebrate your new freedom from this financial burden and stress.
Your Financial Freedom:
Keep all of your copies of the documents pertaining to this sale in a safe place.
Call us with your new forwarding address so that we can keep in touch with you through the year and offer you assistance in preparing yourself for future success. Try not to incur any new debt and try to keep low balances on any credit cards you may have. Maintain good consumer credit by not paying late on your currently active accounts. Pay your rent by check or some other way that can be tracked to show evidence that you are paying on time. This will help you should you choose to purchase a new property in the future.