Listing or Selling a Short Sale

For property owners who can no longer afford to keep mortgage payments current, there is an alternative to bankruptcy or foreclosure...and that option is called a "short sale". When lenders agree to accept a short sale, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payments, however, most will with the correct set of circumstances.

But, whether you intend to take on listings selling property short or not, it’s important to have an understanding of the process. Because first and foremost, if you have a Buyer who wants to purchase a new home and be moved in within 30 days or less, than you can not sell them a home owned by someone who is trying to sell short since that process takes anywhere from 1 to 5 months and could be denied. So the first thing you should be asking the listing agent before you make arrangements to show the property is whether or not the Seller owes more than the property is worth and if they intend the existing lender to accept a short pay.

Now, if on the other hand, you have a Buyer who wants to take advantage of this market and find an excellent buy, you may want to target these short sales...and the first step for a Buyer or investor is to get their financing arranged. They need to be pre-approved, not just pre-qualified. This means, all income documents, signed application and other disclosures. So call your favorite mortgage broker and they’ll arrange to give you the documentation you will need to submit along with the Contract For Sale and Purchase.

For those of you who want to market "short" properties and rescue the Seller(s) - you have some extra steps to take at the listing appointment and thereafter:

  1. Obtain the Name of existing Lender(s) and the loan/account number(s), together with any correspondence the Seller has recently received from them.
  2. Locate the telephone number for the Loss Mitigation Department (we have prepared a list of the most common leders at the bottom) - Contact them to obtain an application form and a list of documents they will require to consider a short pay. Most likely they will require the Seller to provide the following:
    1. Financial Statement with proof of income and assets;
    2. Two years Tax Returns;
    3. Two current pay stubs; and
    4. Two most recent Bank Statements.
  3. Obtain an authorization letter from the Sellers giving you permission to contact the Lender. (It’s good idea to include  Highlight Realty and all it associates ,Title’s company name as well so we can assist you with follow ups).
  4. Obtain a "hardship letter" explaining whey the Seller must sell.
  5. Prepare a Comparative Market Analysis.(optional)
  6. Take pictures of any and all defects indicative of reduced value.
  7. Contact Title company to prepare a preliminary HUD-1 or net sheet.
  8. Copy the Contract For and Purchase (including a "short sale" disclosure), Listing Agreement and the proposed Buyer’s pre-approval letter.

If all goes well, the Lender will approve your short sale, however be prepared for the Lender to renegotiate commissions. GOOD LUCK!


Loss Mitigation Contact Information

ABN Amro Mortgage Loss Mitigation:
Customer Service: 800-793-8900
Web: http://www.mortgage.com

Aurora Loan Services Loss Mitigation:
Customer Service: 800-550-0508
Claims Department: 800-723-6578
E-mail: ccnmail@alservices.com
Web: https://www.alservices.com

Bank of America:
Loss Mitigation: 800-846-2222 or 716-635-2000
Authorization Fax: 716-635-7265
Short Sale Package Fax: 716-635-7255

Bank of New York Loss Mitigation:
Phone: 212-495-1784
Fax: 212-415-2035

Cendant Loss Mitigation:
Phone: 800-750-2518
Fax: 856-917-8334

Chase Hone Finance Loss Mitigation:
Phone: 800-848-9136 (Mortgage)
Phone: 800-836-5656 (Home Equity)
Phone: 510-652-0401
Web: https://chaseonline.chase.com

Chase Manhattan Mortgage:
Homeowners Assistance Department (foreclosure)
  Phone: 800-446-8939
  Fax: 614-422-7259
Additional numbers
  Phone: 800-981-3792
  Fax: 858-605-3006
  Phone: 800-526-0072
  Phone: 800-527-3040 ext. 533

Chevy Chase Bank Loss Mitigation
Customer Service: 800-933-9100
Web: http://www.chevychasebank.com

CitiFinancial:
Foreclosure: 800-424-3562
  or 800-423-8158
  or 800-848-7491
Dial by extension: 800-888-6001

CitiMortgage:
Loss Mitigation: 800-682-2286
Foreclosure: 877-202-3846
Loss Mitigation: 866-357-6015
Loss Mitigation Fax: 248-488-7727
Workout Fax: 248-488-8357
Loss Mitigation: 866-357-0614
First American: 800-511-1278
Workout Fax: 636-256-2884

Countrywide Loss Mitigation:
Phone: 800-669-6607
Fax: 800-658-0395
Loss Prevention and Workout Department
  Phone 1: 800-262-4230
  Phone 2: 800-669-4576
Web: http://www.countrywide.com

Ditech Funding Loss Mitigation:
Phone 1: 800-852-0656
Phone 2: 800-449-8582

EMC Mortgage Corporation Loss Mitigation:
Phone: 800-723-3004
Web: http://www.emcmortgageservicing.com

Fairbanks Loss Mitigation:
Phone: 888-818-6032
  or 801-270-7713
Fax: 904-232-4607

First Horizon Home Loans Loss Mitigation:
Phone: 800-707-0139 -- ext. 17305

GMAC Loss Mitigation:
Phone: 800-850-4622 ext. 54424
Phone: 866-974-4622 (subprime loans)

Home Side Loss Mitigation:
Phone: 904-281-3900

Homecomings Loss Mitigation:
Phone 1: 800-206-2901
Phone 2: 858-874-7417

HSBC Mortgage Corporation Loss Mitigation:
Collection Counselors (if short term problem)
  Phone: 800-338-6441
Default Resolution Team (if long term problem)
  Phone: 888-648-3124
  Fax: 732-352-7519
Web: http://www.us.hsbc.com

Indymac Bank Loss Mitigation:
Loan Resolution Department: 877-736-5556
Web: http://www.indymacbank.com

Irwin Mortgage Corporation
Phone: 888-444-6446
Pre-Foreclosure: 888-218-1988
Web: http://www.irwinmortgage.com

Litton Loan Servicing Loss Mitigation:
Phone 1: 800-548-8665
Phone 2: 713-966-8803
Fax: 713-966-8820
Web: http://www.littonloan.com

National City Mortgage Loss Mitigation:
Phone 1: 800-523-8654
Phone 2: 937-910-3563
Web: http://www.nationalcitymortgage.com

New Century Mortgage Loss Mitigation:
Phone: 877.206.9904
Web: http://www.newcentury.com

Ocwen Loss Mitigation:
Phone: 800-746-2936

Option One Mortgage Loss Mitigation:
Phone: 888-275-2648
Web: http://www.oomc.com

PHH Mortgage Loss Mitigation:
Phone: 800-257-0460
Web: http://www.phhmortgage.com

Saxon Loss Mitigation:
Phone 1: 262-502-6724
Phone 2: 817-665-6537
Phone 3: 414-278-8068

Select Portfolio Servicing Loss Mitigation:
Loan Resolution Department: 888-818-6032
Fax: 801-293-3936
Web: http://www.spservicing.com

SunTrust Mortgage Loss Mitigation:
Phone: 800-634-7928
Web: http://www.suntrustmortgage.com

Wachovia Mortgage Loss Mitigation:
Phone: 866-642-8608

Washington Mutual:
Loss Mitigation: 800-496-9633
Collections Department: 904-281-3900
Foreclosure Department: 866-356-5789
Fax: 818-775-2010

Wells Fargo:
Phone: 888-231-0757
Loss Mitigation: 877-216-8448
Borrower Assistance: 800-551-9808
Borrower Counseling: 866-261-5642 or 800-766-0987
Payment Assistance: 800-678-7986
Foreclosure: 800-868-0043 or 800-352-7654
Web: http://www.wellsfargo.com

Wendover Financial Services Loss Mitigation:
Phone: 888-934-1081
Phone: 800-436-1022
Web: http://www.wendover.com

Whitney National Bank Loss Mitigation:
Phone: 800-347-7272