In order to avoid the costs and consequences of a foreclosure, the banks allow a property to be purchased for less than the loan amount while the property is in a pre-foreclosure state. A pre-foreclosure state means the lender has not yet foreclosed.
These are the typical steps of a short sale:
- Sign a listing agreement with Focus Commercial Group to sell your property.
- Focus Commercial Group markets your home for sale at the current market value. At the same time, you submit a financial package to Focus Commercial Group so that we may begin communicating with your lender.
- Focus Commercial Group obtains an offer from a qualified buyer and presents it to you, the Seller, for approval or rejection.
- If you accept the offer, Focus Commercial Group submits the offer and your financial package to your mortgage company for short sale approval.
- If your mortgage company approves of the offer and your hardship, they will issue a short sale approval letter. If you have assets, the lender may require that you make a cash contribution or sign an unsecured note to pay a portion of the outstanding balance as a condition of the short sale approval letter.
- Upon receipt of the approval letter, we strongly advise you present the letter to an attorney for review. if you do not have one, we can recommend you one.
- If both the Seller and the Buyer accept the short sale approval letter, the Buyer works to obtain final loan approval (if using credit) and the transaction proceeds to closing.
- The Seller, the Buyer sign their final escrow documents. The short sale lender approves the final documents. The transaction closes when the Buyer delivers the funds into escrow, the short sale lender releases the lien, and the Seller delivers the Grant Bargain Deed.