HOW TO CLOSE A SHORT SALE

BY: LEE BARROLL

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What is a Short Sale?

Short Sale – is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan.

It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower.

Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.

What is the First Step in the Short Sale process?

Determine if the Seller is going to Qualify?Factors: Lender list of information, prove

inability to pay the balance.

Why is it a Short Sale instead of a Foreclosure?

Find out who the listing agent is and what Short Sale experience do they have.

Questions that need to be answered…

How many liens are on the title? ** All liens have to be cleared on title**

Have you been in touch with the lender about specific policies and procedures?

Has the seller initiated the process? **Gauge the buyers expectations**

What’s the next step?

Make an offer

Complete a Fully Executed purchase contract

The Mortgage Approval Process

The FCM Mortgage Process is the same as it would be for any typical purchase transaction.

**The Underwriter will want to see a Short Sale Agreement**

Closing

Normal Mortgage- need clear title at closing. *(All liens have to be released on the title)

Common Mistakes – Person who signs the sales contract (seller) is different than the Owner of Record..

Tips – Always best to pull Preliminary Title.

THANK YOU!