SHORT SALES

SHORT SALE FAQS

Q: What forms do you require to present an offer to your Seller with a short sale property listed?

A: In addition to the Purchase Agreement and other forms you would normally submit, also include a Short
Sale Addendum (SSA) and Lender pre-approval letter for the Buyer. For cash offers, proof of funds

will be required and forwarded to the Lender in the Short Sale Package. When completing the SSA, the
“Short-Sale Contingency Date” (paragraph A.) should be at least 30 days from the contract date.

Additionally, make sure the appropriate checkboxes in paragraph B. are not overlooked.

Q: How do you handle multiple offers on a short sale property?

A: As in any other transaction, all offers will be presented to the Seller, however, only the offer initially
accepted by the Seller will be forwarded to the Lender. In accordance with the SSA, despite acceptance

of a Buyer’s offer, any additional offers received on the property will be presented to the Seller and the

Seller will decide if they want to; 1.) forward the offer to the Lender, 2.) hold the offer as a backup offer,

or 3.) reject the offer.

Q: Once an offer is accepted by the Seller will you leave the listing Active on the MLS?
A: No. According to MLS rules, once an offer is accepted and submitted to the Lender for short sale
approval, the status of the listing on the MLS will be changed to “Pending - B.”

Q: At what point should escrow be opened?
A: As in any other transaction, once an offer is accepted escrow will be opened immediately so a preliminary
title report can be ordered. It is important to review the prelim as soon as possible to determine if there are

any liens against the property that need to be dealt with.

Q: How soon after accepting a Buyer’s offer is it submitted to the Lender?
A: As soon as the HUD-1 and all the Seller’s financial information required for a short sale package is
received, the complete Short Sale Package will be faxed and/or mailed to the Lender. Usually this can

be accomplished within 2 to 3 business days.

Q: When will you look at backup offers?
A: Once a cancellation of escrow is signed by both the Buyer and Seller of the previously ratified contract,
backup offers will once again be presented to the Seller for review and acceptance. The newly ratified

purchase contract, along with a new HUD-1 and other documents required by the Lender, will then be

submitted to the Lender for review. Escrow will be opened and the review process will begin.

Q: How often do you check with the Lender.
A: The Lender will be called for a status update at least once each week, usually on Tuesday or Thursday
mornings. After checking with the Lender, the Selling Agent will be notified of any updates by email

Note: Once approval letters are received from all lien holders, a copy of the approval letters will be
forwarded to the Buyer’s agent with an addendum stating the Buyer accepts the terms and conditions of the

Lender’s approval. This same addendum will be presented to the Seller. Once signed by both parties,

the Addendum will be forwarded to the Escrow Officer and escrow will proceed as normal.

SHORT SALES

Darren Stevens