Short Sales - The Closing

Short Sales - The Closing

Steps to Close

1. The Agent/Title company recieves the approval/demand letter. The Agent must forward it to the Title company in most cases. Demand letters or release letters must be submitted for all loans.
2. Title company works up the settlement statement exactly as stated on the approval letter. None of the numbers can be changed at this point.
3. Line 603 must net ZERO woth NO money to the seller. The demand letter must be revised in order to change the figures on the HUD-1.
4. The HUD-1 is faxed back to the lender(s) to review and approve. The second lien holder who has issued a release must also be sent the final HUD-1 to review and approve ( This is in BIG BOLD PRINT on every letter.
5. ONLY after the lender(s) has approved the final HUD-1 are you authorized to close !

Reminder:

The foreclosure process will continue while the property is listed and even during negotiations of a short sale. Please ask for a postponement of the foreclosure sale if a legitimate offer is pending. Do not assume the negotiator is aware of the pending foreclosure sale.