Short Sale - Overview
A short sale enables you to sell your home for less than the total amount owed on the mortgage. If eligible, we would accept the short payoff in full satisfaction of the total amount due on the mortgage loan. If there is not yet an offer on the property, or the property is not yet listed for sale, we will also consider an agreement that will allow time to list the property for sale. Upon completion of the sale, the occupant (homeowner or tenant) is eligible for payment of relocation assistance, which may be up to $10,000.
For Accounts with Active Assistance Options at the Time of Service Transfer: If you were working with your prior servicer on account resolution options at the time of the transfer, SPS will continue working with you to reach a resolution. SPS will work with your prior servicer to process active assistance options. If you previously submitted documents to your prior servicer, SPS will work with your prior servicer to review your documents and process your assistance request. Please contact SPS if you have any questions on how the service transfer impacts your account, including pending resolution options.
If you are interested in pursuing a short sale, please call (888) 818-6032 to speak with one of our experienced Loan Servicing Representatives.
Please submit the following documentation for verification purposes (please use the links below to access the required documents):
- A copy of the executed purchase contract including all addenda.
- A completed and signed Third party authorization will be required for SPS to speak with any third party involved in the sale of the property.
- The approval letter from any subordinate lien holders. The approval letter must confirm that they will release their lien including a full release of borrower liability.
- A complete Request for Mortgage Assistance (RMA) form signed by all customers. This form, or an attached letter must contain a detailed explanation of the hardship, including information on when the hardship began. For a copy of this form, please log in to your account and select Request for Mortgage Assistance from the menu.
- Buyer’s pre-approval, commitment letter, or proof of funding.
- If the property is non-owner occupied and you wish to request relocation assistance on behalf of a non-owner occupant, you must ensure the Non-Owner Occupant Certification is executed by each eligible non-owner occupant that is to receive relocation assistance.
- A copy of the proposed HUD-1 Settlement Statement that shows all anticipated expenses involved with the short sale transaction, including closing costs, commissions, taxes, relocation assistance, and amounts paid to all lien holders.
Establishing Property Value
The current value of the property will be evaluated by obtaining an appraisal or a broker price opinion (BPO), this may include an interior review of the home. If an interior review is required, you or your agent will be contacted to schedule a time for the review to be conducted.
In the event that the licensed real estate agent listing the property disagrees with the property value, SPS will request additional information from the real estate agent to support any disputed value. Documentation may include repair estimates and / or comparable sales. Information can be sent via email to firstname.lastname@example.org or faxed to 801-270-7833. SPS will review the documentation and provide a verbal response within approximately 15 days.
The property must be listed with a licensed real estate professional that is regularly doing business in the community where the property is located. The listing price should be fair market value for the property. SPS reserves the right to review the list price and work with the customer on a price reduction strategy.
Payments During Marketing Period
Eligible customers may be offered a ($0.00) zero dollar payment plan during the marketing period. SPS will not reject the customer’s payment if they chose to make their full contractual payment. The marketing period may last no less than one hundred twenty (120) calendar days, and extensions to the original term may be offered upon discretion of Management. The customer may be required to provide a listing agreement and evidence that property is actively listing for sale.
The following timelines should be used as a guide for returning documents:
- Submission of required income / eligibility documentation – Income / eligibility documentation should be received within 14 calendar days of the date that the request for assistance is received.
- Acknowledgment of receipt of request for short sale or deed-in-lieu of foreclosure – SPS will acknowledge the request for assistance or receipt of the signed Hardship Affidavit within 10 business days.
- Eligibility Review to Issuance of Short Sale Notice – SPS has 30 calendar days from the date of the request for assistance or receipt of the signed Hardship Affidavit to determine eligibility.
- Marketing period – Eligible customers may be offered a ($0.00) zero dollar payment plan during the marketing period. The marketing period may last no less than sixty (60) calendar days, and extensions to the original term may be offered upon discretion of Management. The customer may be required to provide a listing agreement and evidence that property is actively listing for sale.
- Submission of purchase contract – All required documentation including the purchase contract, listing agreement, HUD-1 Settlement Statement, subordinate lien approvals, buyer’s proof of funding, and occupancy documentation required for relocation assistance (hereinafter referred to as the "Offer Documents") must be received within 14 calendar days of the submission of an offer on the property.
- Servicer’s approval of purchase contract – SPS has 30 calendar days from receipt of the Offer Documents (10 calendar days if the offer is consistent with pre-approved terms) to issue an approval or denial.
You may also mail, fax, or email your documentation to:
- Select Portfolio Servicing, Inc.
- P.O. Box 65250
- Salt Lake City, UT 84165-0250