Short Sales: The Road to Easier Navigation & Successful Transaction

Many recent indicators I’ve seen, heard, and experienced seem to point to more positives regarding the conducting of Short Sale property transactions. They’re fitting the pieces of the Short Sale puzzle together a bit faster and better.

     Major servicers (big banks) finally seem a bit better equipped, more willing to avoid foreclosure expenses, and more adept at handling Sellers looking to sell their properties “short”.


     I say, “it’s about time”, right?  It’s been a long, painful, and slow process getting to this point.
     Like everything else in the real estate business revolving around this housing recession, there’s been a learning curve for all involved regarding Short Sales.  Whether Seller, Agent, Buyer, Mortgage Lender, or otherwise … we’ve all had to educate ourselves about what works best and what doesn’t.  Refine the process.

     Banks have finally and seemingly beefed-up their staffing to better handle the flood of requests for these transactions, as well … at least in some small part.  That’s definitely helped facilitate business.

     As a mortgage lender  to Buyers considering the purchase a Short Sale property, my #1 recommendation is for them to start their mortgage application sooner than later.  Don’t wait.  Take action!


     Gather your financial documents needed  (Income and Asset Documents) and complete a Loan Application  right away.  Actively pursue your Loan Approval while waiting to receive the decision of the property-holding bank.  Yes, I know, that means “hurry-up and wait”.  But better that, than the opposite.

    By pursuing loan application,  you take the stress (as much as possible) out of the loan processing.  You complete as much of the process as possible … right up to appraisal and title search.

     Yes, the financial commitment of your loan application fee is fact, there is no denying that.  But try to remember, an application fee is a minimal investment to make versus the larger savings of buying a distressed property.  Don’t forget your overall goal.

    With my company, we do not appraise the property you are hoping to buy until the bank has accepted the Short Sale contract.  That limits the cost of your initial loan application, as the the biggest expense of the loan application (Appraisal Fee) has NOT been incurred, should the bank deny the Short Sale scenario.

    Once your loan is submitted to Underwriting (subject to Short Sale Agreement and Appraisal), and your purchase scenario is approved by the bank, moving forward and Closing in 30 days or less can be easily and successfully achieved.

   Take Note:  Buyers may have to provide updated pay stubs, bank statements, or have a new credit report run as the remaining process unfolds, (fairly routine these days).  But your early preparation will greatly lower your stress level at this point … and of all others involved within the transaction.  And that typically proves greatly beneficial to the overall success of the transaction.


     All in all, the Short Sale process seems to have been improved and streamlined as everyone involved has become more educated and fluid in conducting this business.  All good news for Buyers, Sellers, and real estate professionals, as we move forward into summer, our most busy real estate sales season nationwide.

2 thoughts on “Short Sales: The Road to Easier Navigation & Successful Transaction”

  1. I think it’s ironic that now the banks are starting to understand how to get short sales sold, just as the market has turned and most of the fairly priced homes are selling quickly. Hopefully within a short period of time, short sales will be very unusual.

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