HOW TO CLOSE A
BY: LEE BARROLL
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.
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.
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
What’s the next step?
Make an offer
Complete a Fully Executed purchase contract
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
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
Tips – Always best to pull Preliminary Title.