A 10-step process
usually taking from
60 to 180 days
Call us if you would like to learn more about the process and how, together, we will work towards stopping the foreclosure process and finding the best solution to your situation. The days listed on the following timeline are estimates. In most cases they are accurate. The wildcard in the timeline is Step Seven, the bank negotiations which, as noted, is hard to predict.
1. Initial Consultation Day 1 (20-30 minutes)
Usually over the phone, a Relogic Short Sale Specialist will help you determine if you qualify for a short sale after learning more about your situation. Almost all homeowners who call, who are underwater on their mortgage, qualify for a short sale.
2. Relogic Prepared Comparative Market Analysis (CMA) Day 2-5
In order to determine the current value of your property, Relogic will prepare a comparative market analysis (CMA). This will show us the values of the active and sold properties in your neighborhood and provide us with a better idea of how to successfully market your property.
3. Meeting with a Relogic Short Sale Specialist Day 3-7 (2 hour meeting) Includes steps 3-6
We will meet with you to discuss your situation in more depth. This will help us determine the best path toward avoiding foreclosure for you personally and helps us pin point your best course of action. We may also have a better idea of what to expect from your lender and how much time we have before the set foreclosure/auction date. When working towards a solution with your lender, sales dates can most often be postponed.
4. Paperwork Completion Timeframe included in Step 3
Our short sale team will guide you through every step of the process in completing a short sale package that will be submitted to your lender. This package will most likely include a hardship letter, financial statements, recent pay stubs, bank statements and tax returns.
We will also walk you through all listing documents needed in order for us to list your property for sale.
5. Listing the Property Timeframe included in Step 3
Relogic may add your property to the Multiple Listing Service (MLS) where thousands of agents will be able to see your property. Your property may also be listed on dozens of real estate websites for searching buyers. We may also place a For Sale sign in your yard.
6. Offer from Essence Homes Timeframe included in Step 3
Relogic’s sister company, Essence Homes, may place an all cash offer on the property. Essence Homes buys distressed properties, completely renovates and revamps the property and then releases it back into the market. Most short sales cannot be started without an offer. This offer will start the bank negotiation while likely suspending the foreclosure date on the property.
7. Bank Negotiations Day 30-120
Relogic employs full-time bank negotiators who have relationships with lenders. The time frame to hear back on approval varies from lender to lender. It can take weeks or months for lenders to respond with an approval or counter to our offer. This delay can give you more time in the property, while pushing out the foreclosure date.
8. Broker Price Opinion (BPO) Day 30-120
The lender will send a representative to the property to do a Broker Price Opinion (BPO), before they respond with a counter or acceptance to our offer. This will allow the lender to assess what the property is worth in today’s market.
9. Offer Response and Lender Approval Up to Day 30
The bank will respond to Essence Homes’ offer, informing us whether they have accepted the offer or are countering with a bank approved sale price. If they come back with a counter that Essence Homes cannot match, we may then be able to list the property at a bank-approved price. This should bring in a new offer that we know the bank will accept.
10. Closing Day 60-180
Once we have an offer that the bank has approved, the closing process begins. The buyer’s agent discloses to their clients that short sales are sold ‘as-is’, and it is unlikely that the lender will agree to any inspection items. You can plan on closing your property within 30-60 days of lender approval.