Even in these confusing times and with all the programs in place, this timeline has not changed. Although in some cases it is stretched out by technicalities – the servicer can always fall back to the Foreclosure Timeline. Even if they are ones that is delaying the process!
Hire an agent that knows this and will keep a watchful eye on the timelines and deadlines.
QUESTION: How long does it take to get a short sale approval?
ANSWER: It depends on the following (and more…)
- The Servicer/investor and their short sale process
- The offer verses what the servicer and their investor is expecting to get from a short sale
- The buyer and their patience with waiting…. * if buyer walks, this could delay the process
- The agent and how they present the short sale request package
- The homeowner * if they provide the necessary documents that the service require
- The hardship
- Where the homeowner is in the pre-foreclosure/foreclosure process (if you only have a few days until the Trustee sales date)… this could cause problems
- And again, the Service and their investor * and their workload & process issues
QUESTION: Is it necessary to supply documents that I have already submitted?
ANSWER: Yes. Always make sure you cover yourself and give updated and complete documents to the servicer. Never assume they have the document already. There could be several reasons why they will need you to submit a complete package.
Lost the first one you submitted when trying to get a loan modification or a short sale
Different person working on your file… what they see is an incomplete file (avoid them having a reason to put your file in the round file).
Documents have a time restraint on them – usually it is 90 days, but never assume this – if they ask for a certain document provide it and always submit a complete package
I cannot list all the reasons you should always make sure your servicer have all the documents and if they ask for one that you have already submitted --- just do it and give it to them again.
QUESTION: What if we get more than one offer on my property?
ANSWER: This is common in this market. You and your agent should review the offers you have on a given date and you decide which offer you want to submit the mortgage servicer along with the required document to complete the short sale request package. Your servicer will have a list of documents that they require (Copy of the listing, offer, buyer information, estimated HUD, listing agreement, your financial documents: pay stubs, W2, bank statements, financial worksheet, hardship letter, letter of authorization, etc.)
It is wise to select the highest and best offer and also have a backup.
QUESTION: What can we do to make sure the buyer DON”T WALK before the Short Sale approval is received?
ANSWER: There is no special thing you can do, just make sure your agent has as firm and offer and buyer as possible. They will all say they will wait and then keep looking at other properties and if another offer comes up first… they will walk on your short sale. It’s a promise.
It is equally important that the buyer does not walk away. This all can cause delays.
QUESTION: What if my agent forgets to ask to postpone the Trustee Sale – with my Servicer automatically postpone that date if they are working on the file?
ANSWER: NO, NO, NO. Never forget to ask. And don’t be assume to ask more than once to be sure it is registered in the system and that you have an answer as to the new Trustee Sale date. There is no going back and correcting this…. If the trustee sale happens, it’s like the heartbeat that stopped. Its over!
QUESTION: What do you mean "my servicer purchased the property" at the Trustee Sale?
ANSWER: What this means is that the trustee sale was held and no outside bids were received or they were not high enough and so the mortgage servicer placed the winning bid on the property. Either way, the property is foreclosed at that sale.