City of Fontana

What is a Real Estate Short Sale?

A Fontana real estate short sale is when the your mortgage bank/servicer’s investor has agreed to take less than what is owed.

A short sale is a foreclosure alternative.

The Short Sale Process (6-steps)

1. An owner or the agent negotiating on their behalf contacts the existing lender. The lender then lays out how to obtain their specific short sale forms, instructions and requirements.
2. This group of documents, which typically include the purchase agreement and the lender’s financial forms can consist of one hundred plus pages, are sent to the lender for review.
3. The lender receives the short sale package and it is assigned to a specialist within the lender’s loss mitigation department. This stage of the short sale process can last anywhere from two weeks to several months.
4. After reviewing the short sale package, the loss mitigation department contacts the owner or their agent to request any additional items that may be required and missing from the initial short sale package.
5. A broker’s price opinion (BPO) or an appraisal of the property is then requested by the lender. Once the BPO or appraisal and a complete short sale package is obtained, it is submitted for final review.
6. When the final review is completed, the lender then approves the offer or requests changes. The changes can include items such as purchase price or the amount of commission for the real estate agent. At this stage, it is also possible for the lender to determine that their client, the seller, may not have a reasonable reason to short sale, and could then deny the request.

Choosing the right Realtor

What’s important is that you choose a Realtor who understands the short sale process. There are many Realtors who have educated themselves through various seminars, courses & programs…These Realtors have the necessary experience & knowledge to help you navigate the maze of a short sale, allow them to help you understand the short sale process.

IMPORTANT DISCLOSURE in compliance with the FEDERAL TRADE COMMISSION (“FTC”) MORTGAGE ASSISTANCE RELIEF SERVICE (“MARS”): Before using this service, consider the following information – Tri County Residential Real Estate Associates are not associated with the government and our services are not approved by the government. Seller acknowledges that the Broker/Agent is not qualified to provide financial, legal or tax advice regarding short sale transactions. Therefore, the seller is advised to obtain professional tax advice and consult independent legal counsel immediately regarding the tax implications and advisability of entering into a short sale agreement with their lender/servicer. If you stop paying your mortgage, you could lose your home and damage your credit rating.