The document provides information on the steps to close a short sale. It begins by defining a short sale as a property sale where the sale proceeds are less than the loan balance and requires consent from both the borrower and lender to avoid foreclosure. The first steps are to determine if the seller qualifies for a short sale by providing financial documents to prove inability to pay, and finding an experienced short sale listing agent. Key questions that need answers include how many liens are on the title and if the seller has contacted the lender about their short sale policies and procedures. The next steps are making an offer, signing a purchase contract, and going through the typical mortgage approval process where the underwriter will want to see a short

1. HOW TO CLOSE A
SHORT SALE
BY: LEE BARROLL
Exit Realty
WELCOME

2. What is a Short Sale?
 Short Sale – is a sale of real estate in which the sale proceeds fall short
of the balance owed on the property's loan.
 It often occurs when a borrower cannot pay the mortgage loan on their
property, but the lender decides that selling the property at a moderate
loss is better than pressing the borrower.
 Both parties consent to the short sale process, because it allows them to
avoid foreclosure, which involves hefty fees for the bank and poorer
credit report outcomes for the borrowers.

3. What is the First Step in the Short Sale process?
Determine if the Seller is going to Qualify?
Factors: Lender list of information, prove inability to
pay the balance.
Why is it a Short Sale instead of a Foreclosure?
Find out who the listing agent is and what Short Sale
experience do they have.

4. Questions that need to be answered…
How many liens are on the title?
** All liens have to be cleared on title**
Have you been in touch with the lender about
specific policies and procedures?
Has the seller initiated the process? **Gauge the
buyers expectations**

5. What’s the next step?
Make an offer
Complete a Fully Executed purchase contract

6. The Mortgage Approval Process
The FCM Mortgage Process is the same as it would
be for any typical purchase transaction.
**The Underwriter will want to see a Short Sale
Agreement**

7. Closing
Normal Mortgage- need clear title at closing.
*(All liens have to be released on the title)
Common Mistakes – Person who signs the sales
contract (seller) is different than the Owner of
Record..
Tips – Always best to pull Preliminary Title.

8. THANK YOU!