Ormond Beach Short Sale - a Brief Explanation

A Short Sale is an option for a seller who must sell their home when the value of the property is just not sufficient to cover the balance owed to the existing lender. To "sell short," their existing lender(s), and any other existing lien holders, must approve the sales price, the sale terms, and payoff of their loan to be at a reduced amount.

The Short Sale process is as follows:
*The owner or their agent/negotiator must contact the existing lender.
*The lender will direct them to their website, or will advise how, to obtain specific forms, instructions and lender requirements.
*This group of documents, along with the lender’s financial forms (Short Sale Package*) is then sent to the lender as per the lender’s instructions.
*After the lender receives the package, it is assigned to a contact person in the lender’s Loss Mitigation Department. This process can take anywhere from two weeks to two months and sometimes longer.
*At this point the Loss Mitigation Dept then reviews the package and will contact the homeowner to request any additional items that may be required by the lender. This request is usually made verbally to the homeowner or negotiator but can sometimes be found via the lender’s website.
*The lender will then request a Broker’s Price Opinion (BPO) from an agent chosen by the lender.
*Once the lender has received the BPO as well as the Short Sale Package, they submit it for final review. When the lender has completed their final review, they may give approval "as is" or their approval may be subject to changes, such as sales price or terms. Or the lender at this time may decide that the seller did not have ample reason for the short sale, and therefore deny the request.

*Short Sale Package can consist of 100 to 200 pages including, but not limited to, the following items:
1. Listing Agreement
2. Short Sale Addendum
3. Offer to Purchase
4. Proof of Buyer’s funds
5. Owner’s Tax returns
6. Paystubs
7. Owner’s Bank Statements
8. Hardship letter from owner (explaining why the short sale is needed)

Remember that every lender and every situation is a different story. You need a Realtor proficient and experienced in short sales, who will stay in touch with the lender constantly throughout their process.

I have special training and education, plus experience, in Ormond Beach short sales. Contact me with your questions. Don't wait until your only choice is foreclosure.

Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
www.sherryarmstrong.com
www.daytonabeachscene.com