There are many reasons a person would need to or want to do a short sale. This is good information from Markve and Zweifel, the law firm I use to assist me with my short sale listings to make sure the files are kept up and worked on every day. This information is helpful to sellers, buyers, and realtors alike. Please contact me if you are considering a short sale. Amy Kerber 952-844-6062, 952-210-4414 or Amy@amykerber.com.
Standard procedure for your entire short sale process is:
1. List the property for sale. If you are not entirely sure if you want to do a short sale you could meet with the attorneys first or discuss your situation with a law firm staff member.
2. Appointment Set- Client/Seller schedules an appointment with our law office for legal counsel regarding short sale, creditor and debtor rights, possible tax consequences,etc.
3. A Purchase Agreement is accepted by the seller.
4. Legal Assistant – The legal Assistant will review and package the short sale for the lender.
5. Attorneys- The attorneys supervise the work of each legal assistant through their process, answer questions, develop negotiation strategy, etc.
6. Legal Assistant sends file to the lender
7. Set-Up (3-5 days)-The file is received at the lender, imaged into their systems under the proper loan number,then scheduled to be assigned.
8. Processor Assigned- They will have the file for 2-4 weeks.
9. Negotiator is Assigned- The negotiator also has the file from anywhere between 2-4 weeks. The negotiator review sellers financials, hardship or lack thereof, and determines terms under which this seller would be acceptable for short sale. Once the negotiator determines seller eligibility, he/she will then review the buyer’s offer in comparison with the valuations to determine if the buyer’s offer meets the investor requirements. If the offer is acceptable and meets the investors and Mortgage Insurance Company’s guidelines, the negotiator will submit the file to the Mortgage Insurer( If applicable) and/or investor for final review and decision. If the negotiator finds the buyer’s offer does not meet the investor’s guidelines,the negotiator will counter the offer and send the counter offer to our office. At that time the legal assistant will refer the counter offer back to the listing agent for negotiations with the buyer.If the buyer accepts the lender’s counter offer,the negotiator then submits the file to the MI company and/ or investor for final approval.
10. Mortgage Insurer- An acceptable offer is the first submitted to the MI Co if the loan has Mortgage Insurance. There are many different MI Companies and they all have different guidelines and different time frames which is why no short sale is ever the same. Time frames typically vary from 10-30 days with MI depending on which company it is. Once the MI approves the short sale, the file is sent back to the negotiator & submitted to the Investor for final review and decision. Please note that both MI Co & Investor may request/require a cash contribution or promissory note at closing in order to approve the short sale. If so,negotiations then continue with the seller and/or buyer regarding those settlements. If those settlements are required and/ or agreed to by all parties, the MI company approves and the file is transferred to the investor.
11. Investor – The file is submitted to the Investor for final review and decision. Their process takes typically one to two weeks. Once the investor approves the short sale, the file is sent back to the negotiator for the approval letter to be drafted. When the file is with the investor, it is out of our hands and there is nothing either we or servicers negotiator can do to escalate or speed up their process. The investor reviews the files in the order in which they are received.
12. MZ Law- Once we receive the lender’s offer for approval, it is reviewed by the attorney and the seller.
13. Closing- Most short sale approval letters require closing with in 30 -45 days.
For short sales to be successful, it is imperative that all parties to the transaction,( sellers, buyers, loan officers, and Realtors) are knowledgeable in the process so expectations are reasonable and premature cancellations are avoided.
Please call me to discuss specific situations further or to set up a free consultation.
Amy E. Kerber, Realtor, Graduate Realtor Institute, Certified Relocation Specialist
Coldwell Banker Burnet
7550 France Ave. S. Suite 100
Edina, MN 55435
Minneapolis St. Paul & Twin Cities Business Magazines 2009 Super real estate agent