You’ve submitted your short sale application, and now eagerly await your approval. This can be the most frustrating part of the process – waiting. Depending on the short sale program you are working under, the wait can range from as little as 10 days to several months. An experienced Short Sale Realtor will be able to give you an estimated timeframe for your wait.
The Short Sale Approval letter is the most important document in the Short Sale process for both the Seller and the Buyer. The Short Sale approval letter will not only indicate that the short sale has been granted by the lien holder, but will also include other critical information, including:
- The Approved Gross Sales Price
- The acceptable settlement charges
- The minimum net proceeds required by the servicer
- The date by which the Short Sale must close
- Any Borrower Incentive that may be awarded
- Any Borrower responsibilities, including seller contribution and/or promissory note
It’s important to read the details of the Short Sale approval letter with both your Realtor and Attorney to make sure that you fully understand the implications of the Short Sale agreement. Among other key items, it is crucial that borrowers carefully review how the deficiency is being handled. Too often homeowners assume that the Short Sale approval means an unconditional waiver of the deficiency, but this is not always the case.
An experienced Short Sale Agent can also negotiate on your behalf if the Short Sale approval’s terms are too onerous. This is a key question to ask your prospective Short Sale agent when interviewing potential Realtors for your Short Sale.