The first step would be to meet with our trained short sale consultant. After this initial consultation, and provided you decide to proceed with the short sale negotiation, there is one document that must be signed in the State of California. This document is page 10 of the Notice of Default purchase agreement. This is what is called the 5 day right to cancel, meaning you have the right to cancel the short sale process up until midnight of the 5th day. We as the buyer of your property must allow you the seller 5 days to cancel.
No other documents or forms can be signed until this 5 day period has passed. At that time we will gather the necessary paperwork as required by the lender in order to process your short sale. The first of which is the Authorization to Release information. This will allow us to talk to the lender on your behalf with regard to the property. Other paperwork required include a hardship letter, financial information sheet, bank statements, tax returns and proof of income.
Once all of the necessary paperwork is gathered, we will submit your request to the lender. The process varies from bank to bank. This could take anywhere from 30 days to 4 months. During this time we will be in constant communication with the bank, utilizing our skills and experience in the field to achieve a successful outcome. At some point in the process the lender may order a “BPO.” This is similar to an appraisal which gives the lender an idea of the current value of your property.
After the lender approves the short sale, they will typically allow 30 days for the seller to vacate the property prior to the close of escrow. During the entire process you may remain in the house. Once the settlement statement is received from the bank you will be released from your obligation to the bank, have no foreclosure showing on your credit report, and be able to get the fresh start you and your family deserve.
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