Short sales represent a large part of the current sales of San Diego North County homes. Before we lists the steps in the short sale closing process, we will start by defining a “short sale.” A short sale is where the proceeds from the sale does not cover the cost of the sale and the underlying obligations. To have a sussessful short sale, the lender or lenders have to agee to take less than they are owed. Gary Harmon has a “100%” track record in getting lenders to approve his short sale listings. Gary also has a full time admin person to work on getting your short sale approve.
Main Steps in the “Short Sale Closing Process.”
- Before your agent can start working to get you a successful short sale closing, your agent must be approved to work with the bank. This takes a short sale authorization letter. The seller just writes a letter to the bank granting the lender permission to talk with the agent about items relating to the short sale.
- The next step for your agent is to get a preliminary title report. This preliminary report is the main tool your agent uses to learn what is recorded against your property. This report helps to verify ownership, confirm the correct legal and property address, and to identify any trust deeds, delinquencies, liens, taxes, and judgements against your San Diego home.
- Your agent obtains an estimated “HUD” for everyones approval. This it the primary document that says where all the proceeds are dispursed. This is prepared by the escrow officer (closing officer) and is usually revised many times.
- Your lenders will issue approval letters spelling out the conditions under which they will agree to do the short sale. Approval letters usually have very sensitive timelines and detailed conditions that are critical to the closing process. Approval letters usually expire within 30-45 days.
As you can see, there are a lot of details involved in getting your home through a short sale. That is why you should hire an experienced agent like Gary Harmon. Contact Gary Harmon today.
Content by Gary Harmon.