What Steps are needed to complete a Short Sale in Phoenix?
Welcome back good people of Arizona as we continue our series of articles concerning the complexity of a short sale in Phoenix Arizona to include the responsibilities of the listing agent and lender and their subsequent steps where full details are provided by Cash Now Homes as we have the experience and expertise on how to successfully complete short sales in Metro Phoenix and beyond.
Let’s start off with the Steps that the Listing Agent will need to do so please see below for details:
- When setting up (the short sale) the listing agent has the following tasks to do:
- The listing agent has to initiate the short sale process and with a sense of “extreme urgency.”
- The listing agent also has to submit a completed short sale application package (as it is commonly referred to) to include the listing agreement which has to be signed.
- Now it’s time we talk about processing the short sale itself which is wholly dependent on the receipt of offer and the documents that are required from the following parties (listing agent, seller and the buyer.)
- The listing agent has to work and truly help the homeowner to gather the needed documents (everything that has been requested by the lender) to include contacting any junior lien holders if necessary.
- After all the requested documents have been collected, it is time to submit them.
- Now it’s time to Negotiate which along with being experts in Short Sales in Phoenix Arizona is Cash Now Homes area of specialization but of course, the negotiation is dependent on all required approvals from the investor (will write a very detailed article on the definition of who the Investor is in a short sale) to include the mortgage insurance (MI) company so please see below for further details:
- The listing agent has to submit the highest and best offer for the seller.
- A fully executed purchase contract has to be submitted as well.
- The estimated net sheet also has to be submitted.
- Now comes the part that we enjoy at Cash Now Homes and that is working with the lender and the homeowner on the offer negotiation.
- Now we are headed to Closing so we will continue to work with the lender, homeowner, the buyer’s agent as well as the buyer in order to make the closing happen.
- Now comes the Settlement and this is where we coordinate the home transfer with the homeowner, buyer and the buyer’s agent to include collecting the real estate agent commission. Wow!! As you can now tell, there sure are lots of tasks that the listing agent has to go through to make the Phoenix Short Sale close successfully so let’s move on to the responsibilities of the lender.
So now that we have defined the responsibilities of the listing agent, it’s now time to define the actual tasks that the lender has to do although it can change from lender to lender but the basics are the same and that is what I will outline in this article so let’s get started.
- As far as the setup is concerned, the lender has to check for HAFA eligibility and by the way, HAFA stands for Home Affordable Foreclosure Alternatives and it’s a wonderful program that can save the seller from losing their property to include having the property valuation ordered at this point.
- When it comes to processing, the lender begins to review the investor and mortgage insurance company requirements. Furthermore, this is where the lenders requests and obtains all needed required documentation.
- Now comes the negotiation part for the lender and they do the following:
- They review and analyze the offer when it is submitted by the seller.
- The estimated net sheet is verified to make sure it is absolutely correct.
- The lender also facilitates an offer negotiation with the investor if needed.
- A request is also made for the investor, junior lien and mortgage insurance company approval.
- Once approved (if approved), the lender will send the approval letter and the closing instructions to the listing agent to continue working towards completing the short sale process.
- This part of the process is where the lender confirms the closing date after having verified all documents and made sure that all approvals have been obtained. Furthermore, they have received the buyer and seller Closing Disclosures which needed to be sent to the lender at least 48 hours prior to closing as time is needed to review this.
- Last but not least as far as the lender responsibilities are concerned, we find ourselves at the settlement phase so please see below for more details:
- The lender verifies the wire amount and confirms that all steps have been met and completed.
- The lender processes the payoff and closes out the foreclosure system as the short sale is now complete.
Okay good people of Arizona, I believe that this is a good place to stop as I have outlined the step by step process that the listing agent and lender to include all parties have to work towards in order to complete a successful short sale in Phoenix.
Last but not least, Cash Now Homes looks forward to you coming back for more detailed information as we continue our short sale series and beyond. Please know that if you need assistance and are facing foreclosure, all you have to do is contact us and we will be there to lend a helping hand.
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