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Short Sale

Considering short selling your home?

If you are currently behind on your mortgage payment, not sure how you will make it up, or facing possible foreclosure, you need to know you have options.

The biggest step you must take is to inform your lender of your situation. There are steps they can take, which may include:

  • Loan Workout: This is where your lender may temporarily reduce or suspend your payments, giving you some time to get back on your feet.
  • Refinance: Many times, a simple refinance can give you that month break you may need to catch up.
  • Loan Modification: Your lender may be able to change some of your terms and modify your current loan into a more manageable one.
  • Short Sale: Your lender can sell your home for less than what you owe but it's their call as to how they sell.
  • Other ways to avoid foreclosure: Consider partial bankruptcy, or renting space in your home for additional income.

Have you decided to short sale your home?

You will need to contact a short sale agent to help you through the process.

  • Letter of hardship: You will need to write a letter of hardship to your lender describing the situation and why you can't pay your mortgage. This may include something along the lines of unemployment, divorce, death in the family, bankruptcy, medical emergency, or relocation. 
  • Proof of income and outgo: You may need to include your proof of income and outgo, typically for the last couple of years.
  • Short Sales can last for months: This may be called a short sale but it typically is anything but. Short sales can last for months, and buyers and sellers need to be prepared for the long haul.
  • Once the bank approves the short sale, the home will be listed and it will be up to the bank to decide on the buyer and the offer. As a seller you can relax at this point and start to pack knowing your debt is taken care of and you can move on shortly.

What happens after the Short Sale offer reaches the bank?

  • Bank acknowledges receipt of the file: This can take 10 days to a month.
  • A negotiator is assigned: This can take 30 to 60 days.
  • A BPO is ordered: The bank will probably refuse to share the results of the BPO (Broker Price Opinion).
  • A second negotiator may be assigned: This can take another 30 days.
  • Arm's Length Affidavit: The bank may request that all parties sign an Arm's Length Affidavit which promises the bank that the parties do not know each other and that there is no pre-existing relationship between the seller and the buyer.
  • The bank issues a short sale approval letter.


Contact us, or your lender immediately. We can help you get back on track and on with your life. We are experts in short sales. Call us anytime at 360-687-3183 or fill out form below so we can better asses your situation.