Short Sale Process

The Short Sale typically begins like any normal real estate transaction, by listing the property and accepting an offer from a qualified buyer. It is important to agree to a sales price that the lender(s) will agree to (i.e. fair market value) in order to ensure that there are no foreseeable delays. If the contract has a sales price that a lender does not deem to be fair market value, they can deny the Short Sale or demand that the buyer increase their offer. Either way, it can cause an unnecessary delay in the Short Sale process.
Once there is a contract to purchase the property, the required documents and a hardship letter are sent to the lenders(s). Many lenders have their own forms that they want submitted in order to consider a Short Sale, but typically the following items will be required at a minimum:
  • 2+ months paycheck stubs
  • 2+ months bank statements
  • most recent tax return
  • hardship letter
  • completed IRS Form 4506-t
  • completed “RMA” form
  • completed “Dodd Frank” form
  • completed financial statement
  • Third-Party Authorization from

Over the coming weeks, the Short Sale request is processed by the lender(s) to obtain the approval of the Short Sale. The approval letter from a lender will contain the conditions the lender requires in order for the Short Sale to proceed. Once the approvals from all lenders are received and all conditions are agreed to and met, the transaction can close.  In addition, in some instances the pre-approval of the Short Sale may be able to be obtained from a lender.

The entire process of obtaining the approval of a Short Sale may take weeks or months. The time period varies amongst the different lenders. In addition, one of the keys to obtaining the approval letters from the lenders is by having regular and constant contact between the lender and the seller’s representatives. Without this diligence, the Short Sale process will usually not move forward as the lender(s) will not respond to the Short Sale request in a timely manner.

We Have Short Sale Approval From
Most Major Lenders, Including:
-Bank of America (Countrywide)
-Bank of America Home Loans
-Wells Fargo Home Mortgage
-Wells Fargo Home Equity
-JP Morgan Chase
-First Franklin
-First Tennessee
-National City Mortgage
-Greenpoint Mortgage
-1st Horizon
-Banco Popular
-Provident Funding
-and more