Short Sale Basics: What is a Short Sale and What Happens Next

What is a Short Sale?

A short sale is an alternative to foreclosure that can be beneficial to you as a borrower by allowing you to avoid a more negative impact on your credit report. It is simply a sale of real estate in which the proceeds are less than the amount owed on the property's loan.

Due to this fact, the lender(s) have to approve the sale of the property. When hired, we are asking the lender(s) to write down their investment. Our goal is to complete the short sale with little or no monies from the owner.

Additionally, we are seeking no further action from the banks (i.e. a deficiency judgment).

What we offer:

• We collect the all necessary documents that the bank requires for the short sale.
• We help you with the hardship letter.
• We refer a local realtor.
• We manage the realtor.
• We assemble the financial package with the purchase contract and submit to the banks to begin negotiations.
• Throughout the process, we keep all parties updated on a weekly basis on the progress of their sale.
• We refer you to a CPA for a free consultation on tax consequences.
• After close we refer you to a reputable credit repair company.

What are the criteria for a short sale?

Property has to have a current market value of at least $200,000.

If you have refinanced and/or taken cash out, be aware that the bank may require a promissory note of a small percentage of the cashout amount at closing.

Homeowners do not have to qualify for a short sale as they do for a loan modification.

What happens next?

Here are the basic steps to the short sale program. Knowing time frames and chronology will help you in understanding what is happening with your sale.

1. Owner submits full short sale package to eHomeConnect.
2. eHomeConnect confirms receipt with owner and answers any new questions.
3. A local Realtor is assigned to property.
4. A market analysis will be done on the property and a sales price will be determined.
5. Owner signs listing agreement and assigned agent send listing agreement to EHC.
6. Property is listed on the MLS and is for sale.
7. The property is shown to prospective buyers.
8. Buyer and Buyer's Agent submit contract to Assigned Agent.
9. Owner accepts and ratifies contract.
10. Assigned Agent submits contract to eHomeConnect.


Steps 1-10 generally take 30-45 days


11. Full package including owner's financial package and ratified sales contract submitted to Negotiation Team.
12. Negotiation team review short sale package and submits to bank(s) and negotiations begin.
13. If one bank is involved, it may take 45-60 days for bank to counter or approve offer. If two banks are involved, 60-90 days to counter or approve offer.
14. Closing usually must take place within 30 days of receiving offer from bank.

All parties involved will receive an update every 7-10 business days from EHC. A Short Sale generally takes 60-180 days depending on the banks involved.

Please contact us at (888)-444-4090 or info@ehomeconnect.net

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