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Short Sales in CT > Blog > Short Sale Myth: Faxing in a Complete Short Sale Package will lead to an approval in less than 30 days.

Short Sale Myth: Faxing in a Complete Short Sale Package will lead to an approval in less than 30 days.

June 5, 2013

     There is a rumor floating around for a long time that there are secret tricks or 'ins' to get a short sale approved in 30 days.  Usually these folks will tell you that by submitting a 'complete short sale package' with all your financial documentation will result in a short sale that is approved in less than 30-days.   This is simply untrue.


     Short Sale Financials typically include ..
  • Bank statements (last 2 months, all accounts, all borrowers) *continuously needs to be updated
  • Pay Stubs (last 30 days) * continuously needs to be updated
  • Tax Returns (2 years)
  •  Financial Worksheet of all your income/expenses

     For starters, yes there are streamlined short sale programs (those not requiring any financial documentation) that can be approved in less then 30 days, but the approval time has nothing to do with submitting a complete short sale package, it has to do with the lender not having to review the financials, period.  These short sale programs that require little or no financial documentation include the Bank of America Cooperative Short Sale, HSBC Short Sales, some Short Sales with smaller banks, some 2nd Lien Short Sales, and short sales initiated after bankruptcy (some lenders).  So why would you generously collect, scan and send all of your financial records to a creditor who could potentially be looking to sue you in the future if the property ends up in foreclosure?   This is one reason why a 'complete short sale package' should never just be blindly faxed over to a lender to initiate a short sale.

     Secondly, many of the large lenders use an online system called equator to process their short sales.  With this system the lender will request some or all of the financials in specific tasks at certain times during the short sale process.  As long as the seller can quickly come up with these documents, then everything can continue to move forward on schedule with little or no down time.

    Third, the lack of a 'complete short sale package', is not the main reason short sales take so long.  The reason they take so long is because the bank takes a long time to review all the financial documents and because they have too many short sales to process at any given time.  Additionally, some lenders take a long time to even look at the financial documents that it surpasses their guidelines for document expiration and they require updated documents.  Of course some lenders won't tell you this until someone calls in to get the status.  Factor in the issue of high employee turn-over (hired and fired), and you can quickly see why short sales really take so long.

     If you have any other questions about Short Sales or are considering selling your home short sale, please feel free to contact me any time.


     Phil Zimbardi
     Real Estate Broker / Realtor
     Short Sale Specialist

     TOP END Properties

     Phone: 203-936-7776

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