Ocwen Short Sale Application, Forms And Packages

Finding The Right Agent

Short Sales are complicated and as much as they are common place there are few professionals that really specialize in the practice. That is why finding the right expert to work with is crucial; There should be few if any surprises. If you don’t know where to turn to we’ve got access to a set of elite professionals nationwide. Click here to request a call from a short sale pro or call 888-934-3444. 

Get The Property Listed!

Part of the first steps in doing a short sale is getting the property listed. The lender will expect that you work with an agent so that it gets a fair review. They will not allow you to just bring an offer. The may ask for documents such as the MLS Listing and MLS History to show proof that the short sale has been properly marketed.

Nothing can move forward until this step has been completed and the Listing Agreement will be amongst the first of the documents required to get your short sale going.

What is a short sale?

A sale is only a short sale if the offer isn’t enough to pay off all the liens against the property. Ocwen cannot review your home for a short sale without an offer. Furthermore, they need to see what the Net of the offer is that you’re making them after all the short sale closing costs have been deducted. This includes past due taxes, non-recurring closing costs, attorney fees, settlement fees, title fees, and anything else that may apply.

Find The Right Buyer For Your Short Sale

Strong Short Sale Buyers

Buyers for a short sale need to be prepared to wait; Patience is key. A patient buyer is more important than an all cash buyer or even a buyer that is offering more than everyone else. Your broker needs to interview the potential buyers to make sure they are a good fit. Not just the buyer is important but the broker representing the buyer is important.

Previously Approved Ocwen Short Sale

Brokers will often advertise that their short sale was previously approved to make it seem like the short sale process with Ocwen will be fast. Even if Ocwen previously approved the short sale and all the same terms were met the short sale will take in most cases a full review.

Submitting Your Short Sale Package to Ocwen To Get The Process Going.

What is in the Ocwen Short Sale Package?

All lenders, including Ocwen, generally require the same documents. They require 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.

As a short sale seller they require 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.

The only way a short sale lender like Ocwen Loan Servicing LLC knows if your offer to them is acceptable is by completing a value. The value in most cases is completed by a real estate agent who reviews the comparables in the area. They review the properties that are currently listed but more importantly they review the properties that are sold generally within the last 3 to 6 months. They consider the homes 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.

They will also consider market conditions and how fast homes are selling in the area. There are many factors they take into consideration.

Short Sale Appraisal Values

The mortgage investor that Ocwen is representing is already taking a loss so in most cases they will hire a local agent or broker to do a value referred to as a BPO or Broker’s Price Opinion. In certain cases, though the investor requires a deeper review to be completed 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

What happens when a value returns too high? This happens all too often to rookies and experts alike. As much as you try to meet with the BPO Agent or the Appraiser and provide them information that they may use in their report often they are not from the area and compare properties that don’t have anything in common with the subject property.

Ocwen’s Short Sale Time Line Coming To An End.

Once the value has returned and they have a complete package this is where Ocwen’s short sale negotiator or underwriter will make a decision if you meet the minimum criteria to be submitted to management or the investor for approval. Usually, there is an auditing process before the submission to management and if approved there is often another auditing process the occurs before an approval letter is issued.

Ocwen Counters Short Sale

This is also the time when Ocwen may issue a counter or a decline to your short sale offer. Combatting either one of these takes a special set of skills that can only be gained through experience. Anyone can get the easy ones done but it’s the difficult transactions that separate that experts from the wannabees.

Short Sale Escrow.

Closing a short sale is not unlike closing a typical real estate transaction. Once all lien holders have approved the terms of the short sale you can move forward with the typical escrow process. By now a title search should have been completed to ensure all parties with interest in the property have been addressed.

Ocwen Issues Short Sale Extension

What happens if we aren’t able to close the short sale in time and the approval letter expires? This is a question we get all the time and there isn’t a simple answer. It depends on the 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 Ocwen’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 cannot paid from the real estate commissions awarded to the agents involved and paid out of Ocwen’s net).