What is the short sale process?


If you owe more on your mortgage than your home is worth, the debt you owe to the bank can be forgiven through a short sale. To obtain a short sale in California, you must use a licensed real estate agent or brokerage. This must be someone who has experience and knowledge in short sale negotiations. The good news is that we have a team of agents and negotiators at California Short Sale Solutions that are licensed and will do this for you at no-cost. How is this possible? The lender pays the listing commissions when your property is sold, which includes all Title and Escrow fees. You are allowed to stay in your home while the short sale process is occurring.

Step 1: Determine if a Short Sale is Right For You.
Give us a call at 1‑800‑760‑9156 and we can determine if a short sale is your best option. Your other options may include refinance, modification or deed-in-lieu.

Step 2: Obtain Required Documentation
Most lenders require specific documentation, and they don't all require the same thing or use the same forms. Normally the first required document is a hardship letter, which is sent to the lender and explains why a borrower can no longer afford their monthly mortgage payments. The documents are gathered and prepared to be sent to the lender. This step usually takes between 7 and 14 days.

Step 3: Market the Property
We market the home to potential buyers through various channels, including California's Multiple Listings Services (MLS). You are allowed to live in the home during the short sale process. This step usually takes between 20 and 60 days.

Step 4: Negotiation of the Short Sale
Once there is an offer on your property, we submit the offer and paperwork to the lender and negotiate the deal. Negotiations can be tedious and take time. It is best practice to continue marketing the home to get backup offers. If the first offer was not high enough, the lender will counter and tell us they need a higher offer. An ideal offer is one that is close to the appraised value of the house less the consideration of any repair work or time involved for the transaction. During this time we also request monetary funds for relocation assistance from available government and lender programs. This step usually takes between 10 and 30 days.

Step 5: Finish the Transaction We receive approval from the lender to proceed with the short sale. The next and final step is to begin escrow and close the transaction. Traditional escrow time is 30 days. The total time to process a short sale is normally between 3 and 6 months.