What is a Short Sale? A short sale is the sale of real estate where the proceeds of the balance falls short of the balance owed on the loan. Not everyone can sell their home as a short sale. Your first step is to contact your lender and ask them if your home would qualify to be sold as a short sale. If the lender will approve the home to be sold as a short sale then your next step is to choose a Realtor® who is familiar with the short sale process to market your home and negotiate on your behalf with the lender. Ask if your Realtor® is experienced with the Short Sale process. Your Agent must stay in constant contact with the lender throughout the short sale process to make sure things are progressing. Steps to a Successful Short Sale 1. Contact your lender for short sale approval 2. Choose a Real Estate Agent that is familiar with the short sale process 3. The lender will require 6 months of bank statements, last year tax returns, pay stubs and a hardship letter explaining the reason you are requesting a short sale. 4. Your Realtor® will need a 3rd party autorization form completed to speak with the lender on your behalf 5. If you have a first and a second loan or an equity line then you will also be required to provide them with the information in step 3. Your Realtor® will then submit all the paperwork to the lender and once an offer is received then the process will start. Short sales can take at least 3 months from the time the offer is received to closing. The lender will review all the initial information that is received and once an offer is made they will then review the offer and assign a negotiator to the file (this step in the process is taking around 30-45 days). If there is a first and second mortgage or an equity line then it will also be necessary to negotiate with them as well. Even if the first mortgage in willing to accept the offer the second mortgage must be willing to accept it as well or they can block the sale. Another thing to keep in mind is if your home has PMI (Private Mortgage Insurance). If it does then you may also be asked to negotiate with them to proceed with the sale. Expect that the lender may ask you to make a contribution to the the second mortgage/equity line/PMI. If you are unable to make a contribution then they may ask you to sign a note to pay a portion back monthly. There is nothing short as far as timeframe is concerned when it comes to a short sale. If you are considering purchasing a short sale then bargains are out there but prepare yourself for the time constraints and be patient. A lot of short sales in the Nassau County, FL area are receiving multiple offers which is something else you should ask your Realtor® about when searching for short sales. Waiting three months to find out that you have been outbid could be frustrating so go into the transaction prepared and informed. Please contact me for more information about the short sale process or if you would like a list of short sales for sale in the area. Brandi@WatsonRealtycorp.com (904) 382-5256 
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