SPS Short Sale Application, Forms And Packages

Finding The Right Agent

The process of Short Sale is very complicated. The short sale is common but there are very few professionals that know how to deal with it properly. This is the reason it is imprtant to fing the right professionals. There should be a very few surprises, if any. If you can’t figure out where to turn to, we have got a great team of elite professionals nationwide. Click here to request a call from a short sale pro or call 888-934-3444. 

Get The Property Listed!

Getting the property listed is included in the first steps of the short sale process. It is expected by the lender that you work with an agent so that it gets a fair review. The lender will not allow that you just bring up an offer. Documents such as the MLS Listing and MLS History as a proof that a property has been properly listed.

There is no going forward untill this process has been completed and the First of the documents that you will need for the process to go forward will be the listing agreement.

What is a short sale?

A sale will be called a short sale only when that offer is not enogh to pay off all the debts in the name of the property. It is not possible for SPS to review your home for short sale without an offer. Moreover, they will see that what is the net amount that you are making them from the offer after all the costs have been deducted from it. Past due taxes, non-recurring closing costs, attorney fees, settlement fees, title fees, and anything else that may apply are all included in it.

Find The Right Buyer For Your Short Sale

Strong Short Sale Buyers

The interested buyers of a short sale should be ready to wait; Patience is important. A buyer that is patient is more important than the all cash buyer or even the buyer whose offer is higher than the others. Your broker will need to interview the potential buyers to make sure that they are solid. Only the buyer is not importnat but the broker representing is also very important.

Previously Approved SPS Short Sale

It will be often advertised by the brokers that their short sale process was previously approved to make it seem like that the short sale process with SPS will be fast. Even if the short sale was previously approved by SPS in most cases a full review will still be required.

Submiting Your Short Sale Package to SPS To Get The Process Going.

What is in the SPS Mortgage Short Sale Package?

Generally same documents are required by all lenders, including SPS. The documents required are: a listing agreement, a purchase agreement, proof of the buyer’s ability to perform such as proof of funds or a prequalification letter from the buyer’s lender. That’s only the beginning.

It will be required as a short sale seller that you provide your financial information such as a monthly budget, your tax returns for the last two years along with a 4506t to show the returns were actually filed, pay stubs or proof of income like a profit and loss, bank statements, reason for requiring to do a short sale, and a hardship letter.

Getting The Right Value Goes A Long Way.

A lender like Select Portfolio Servicing can only know if you are eligible for a short sale when they complete a value. In most of the cases the value is completed by an agent who reviews the comparables in the area. The properties that are listed in the area are reviewed but more importantly the properties that were sold in the area in the last 3 to 6 months are reviewed by the agent. They consider many conditions like home’s perceived condition, the size of the living space, the size of the lot, how many stories it has and whether or not it has a pool.

Market conditions and how fast homes are selling in the area are taken into consideration. There are many factors that are taken into consideration.

Short Sale Appraisal Values

A loss is already being taken by the investor that SPS is representing so in most cases they will require to complete a Broker’s Price Opinion (BPO). Although in some cases the investor may require to consider a deeper review by an appraiser. Appraisers have specific licenses that are for valuing properties. Some investors such as Fannie Mae (FNMA) complete two appraisals. The type of value completed varies from lender to lender and investor to investor.

Filing Value Disputes and Variances

If value returns too high the what? This often happen to the rookies and experts alike. You may try your best in meeting the broker and appraiser regularly and give the valuable information that they will use in their report but it often happens that they are not from the area and often compare properties that have nothing in common

Select Portfolio Servicing’s Short Sale Time Line Coming To An End.

Once they have got the complete value and the complete package that is when the negotiatior or undersigned will decide that you meet the criteria and that your file is to be presented to the investor or not. Usually an auditting process occurs before presenting the file to the management and then there is a another before issuing the approval letter.

SPS Counters Short Sale

This is also the time when it is possible that SPS may issue a counter to your short sale or decline your request. To compete with either of this one needs a special set of skills that comes only with experience. Easy tasks can be done by anyone but it is the difficult tasks that are hard and seperate the experts and rookies.

Short Sale Escrow.

Closing a short sale is very similar to the closing of typical escrow transactions. You can move forward with the typical escrow process once all debt holders have given their approval. A title search should now have been completed to assure that all the parties affiliated with the property have been addressed.

SPS Issues Short Sale Extension

What happens if the approval letter expires and we are not able to complete the short sale process? This is a question we get all the time and there isn’t a simple answer to it. It depends on delinquency of the mortgage, whether the value they have expired, and many other details. Consult one of our professionals if you need more time to see what we are able to get approved with SPS’s Management. Results may vary greatly but the best part of our services is we only get paid if the transaction successfully closes (we are generally paid from the real estate comissions awarded to the agents involved and paid out of SPS’s net).