WHAT IS A SHORT SALE.A short sale is the sale of a home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds and avoid foreclosure. If Fannie Mae is the first lien holder, we work with the mortgage company that services your loan (i.e. collects your mortgage payments) to communicate with you throughout the short sale process. We provide guidance to the servicer on who is eligible for a short sale, the property listing price, and acceptable contract terms and closing costs.
In addition to avoiding foreclosure, short sale benefits include:
- Eliminate remaining mortgage debt.
- Assistance for relocation may be available up to $3,000.
- Start repairing your credit sooner than if you went through a foreclosure.
- May be able to get another Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (up to 7 years).
- Avoid foreclosure.
LISTING AGENTS RESPONSIBILITIES IN THE SHORT SALE PROCESS
| Determining Eligibility | Assisting homeowner in determining who owns their loan.Contacting the mortgage servicer to express the homeowner’s interested in pursuing a short sale.Working with homeowner to gather and submit all required documents. |
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| Listing the Property | Requesting list price guidance and listing the property as “Active” in the MLS based on the listing price guidance.Marketing the property to receive the highest exposure for the listing. |
| Submitting an Accepted Contract | Submitting “highest and best” accepted contract to the servicer or to Fannie Mae (if applicable).Providing a fully executed purchase contract with required contract clauses for a short sale.Submitting estimated net sheet or HUD-1 settlement statement. |
| Negotiating and Counter Offers | Negotiating offers on behalf of the homeowner including sending out and responding to counter offers.Providing any additional or supporting documentation requested by the servicer and/or Fannie Mae. |
| Closing and Settlement | Work with lender, the homeowner, the buyer’s agent and the buyer to facilitate the closing.Coordinate the home transfer with the homeowner, buyer, and buyer’s agent. |
