Q: Stage #1 Approval and Contract Set up

Possible Duration: 3-7 business days At this stage, Bright Horizon aims to get your documents approved and set up everything for the short sale transaction. You can be sure that after we’ve received all your documents relating to a short sale, we shall file the “Third Party Authorization to Communicate” to all the applicable lien holders. Approval of this document will enable us to discover important information like foreclosure status, delinquency status, taxes owed, HOA amount due, and loan payoffs. At this stage, we will also determine if you are eligible for any special short sale program offered by institutions like, FHA, and HAFA. Our short sale experts will also do a complete title search to ensure that the property is free of any encumbrances like unknown judgments, liens open taxes , violations or the existence of other mortgages with maybe preferential rights.

Q: Stage #2 Soliciting Offers

Possible Duration: Depends on when an offer is submitted At this stage, we are patiently waiting for the listing agent to get hold of a lucrative offer for the property. This is where follow-ups are important. Waiting can be stressful, especially when you don’t get updates from those responsible. That’s why at Bright Horizon, we won’t just fold our arms waiting for a lucrative offer; we will follow up on the file approximately every 3 days. During these follow-ups, we will be looking to identify any changes concerning each mortgage account; or any foreclosure actions that the bank may have taken. If anything changes, be sure that our experts will notify all stakeholders and act accordingly if necessary.

Q: Stage #3 Bank Review

Possible Duration: 15-20 days We only set this stage in motion when we receive an executed contract with all necessary documentation. We will immediately submit it to the applicable lien holder. Then, and only then, will the bank start its review process? You should note that the review process and the time it may require will depend on the bank, investor, and type of short sale. Most banks at this stage are doing their final due diligence. They will want to ensure that the homeowner is eligible for a short sale, that they have submitted all relevant documents, and perform property valuations. However, this stage may take a considerably short time if this is a pre-approved FHA or HAFA short sale or we’ve had offers in the past. It may take as little as 7 to 14 days if you fulfill any of these requirements.

Q: Stage #4 Negotiation and Due Diligence

Possible Duration: 10 to 15 days Once we complete the valuation and the mortgage bank assigns the file to a negotiator, then the status changes immediately. At this stage, the negotiator will do an in-depth review to ensure that there are no missing files and that there are no problems with the transaction. Also, they will review the valuation to know if the bank/investor will accept the offer or not. In doing so, they will need to evaluate your price and also the bank’s minimum price. If your price meets the minimum requirement of the bank, they will accept your offer. The bank will either reject your offer, or you may receive a counteroffer if it doesn’t meet the bank’s minimum requirement. However, if the buyer, seller, and the bank agree, the negotiator will forward the file to the investigator for final approval.

Q: Stage #5 Final Review

Possible Duration: It depends If you are at this stage, it means you’ve gained verbal approval for a short sale. But the short sale transaction is far from over. The secret to going through this stage is patience. Don’t get frustrated and lose your composure. Just trust us and we’ll make it the most stress-free short sale transaction you’ll ever have. It is also important to note that transactions that get to this stage have a 98% chance of getting Final Approval. But you should be diligent and patient. Stick with Bright Horizon, and you’ll navigate this stage effortlessly. Now, let’s highlight two aspects that may unduly prolong a final review. First, several additional reviews from 3rd parties may make this process very frustrating. The time this takes will depend on the number of 3rd parties doing a review. Transactions involving, for example, Mortgage Insurance Companies or Government agencies will usually take longer than usual. Second, there may be a problem with the offer amount. The bank/investor evaluates a property at a certain amount and makes an initial approval. But when you submit your offer, they may feel it doesn’t amount to the value of the property as accessed by them. If the bank feels the offer amount is too low, the final approval may equally take longer than usual. In this light, we may have to dispute the bank’s appraisal of the property. Such disputes may take longer, but it may ensure that you have a very lucrative offer that the bank/investor will accept. But like I earlier said, you need to be patient and trust the short sale experts at Bright Horizon. We will get you over the line.

Q: Stage #6 Transaction Approval and Conclusion

Possible Duration: At least 30 days following short sale final approval A short sale transaction gets to this stage when we receive a final approval letter. This letter must be error-free and acceptable to the homeowner. Going through all these stages, especially stage 5, it’d be negligent for you to relax at this stage. We know how long it takes to get a loan from a bank, but any delays at this stage may cause unforeseen changes. Therefore, you MUST make the bank aware of the urgency of the matter so that they can approve your loan fast and you can conclude your short sale. You can trust Bright Horizon to always give you the best guidance, and orientate you towards concluding a hinge-free short sale.

Question 1

Stage #1 Approval and Contract Set up

Accepted Answer

Possible Duration: 3-7 business days

At this stage, Bright Horizon aims to get your documents approved and set up everything for the short sale transaction.

You can be sure that after we’ve received all your documents relating to a short sale, we shall file the “Third Party Authorization to Communicate” to all the applicable lien holders. Approval of this document will enable us to discover important information like foreclosure status, delinquency status, taxes owed, HOA amount due, and loan payoffs.

At this stage, we will also determine if you are eligible for any special short sale program offered by institutions like, FHA, and HAFA.

Our short sale experts will also do a complete title search to ensure that the property is free of any encumbrances like unknown judgments, liens open taxes , violations or the existence of other mortgages with maybe preferential rights.

Question 2

Stage #2 Soliciting Offers

Accepted Answer

Possible Duration: Depends on when an offer is submitted

At this stage, we are patiently waiting for the listing agent to get hold of a lucrative offer for the property.

This is where follow-ups are important. Waiting can be stressful, especially when you don’t get updates from those responsible.

That’s why at Bright Horizon, we won’t just fold our arms waiting for a lucrative offer; we will follow up on the file approximately every 3 days.

During these follow-ups, we will be looking to identify any changes concerning each mortgage account; or any foreclosure actions that the bank may have taken. If anything changes, be sure that our experts will notify all stakeholders and act accordingly if necessary.

Question 3

Stage #3 Bank Review

Accepted Answer

Possible Duration: 15-20 days

We only set this stage in motion when we receive an executed contract with all necessary documentation. We will immediately submit it to the applicable lien holder.

Then, and only then, will the bank start its review process? You should note that the review process and the time it may require will depend on the bank, investor, and type of short sale.

Most banks at this stage are doing their final due diligence. They will want to ensure that the homeowner is eligible for a short sale, that they have submitted all relevant documents, and perform property valuations.

However, this stage may take a considerably short time if this is a pre-approved FHA or HAFA short sale or we’ve had offers in the past. It may take as little as 7 to 14 days if you fulfill any of these requirements.

Question 4

Stage #4 Negotiation and Due Diligence

Accepted Answer

Possible Duration: 10 to 15 days

Once we complete the valuation and the mortgage bank assigns the file to a negotiator, then the status changes immediately.

At this stage, the negotiator will do an in-depth review to ensure that there are no missing files and that there are no problems with the transaction.

Also, they will review the valuation to know if the bank/investor will accept the offer or not. In doing so, they will need to evaluate your price and also the bank’s minimum price. If your price meets the minimum requirement of the bank, they will accept your offer. The bank will either reject your offer, or you may receive a counteroffer if it doesn’t meet the bank’s minimum requirement.

However, if the buyer, seller, and the bank agree, the negotiator will forward the file to the investigator for final approval.

Question 5

Stage #5 Final Review

Accepted Answer

Possible Duration: It depends

If you are at this stage, it means you’ve gained verbal approval for a short sale. But the short sale transaction is far from over. The secret to going through this stage is patience. Don’t get frustrated and lose your composure. Just trust us and we’ll make it the most stress-free short sale transaction you’ll ever have.

It is also important to note that transactions that get to this stage have a 98% chance of getting Final Approval. But you should be diligent and patient. Stick with Bright Horizon, and you’ll navigate this stage effortlessly.

Now, let’s highlight two aspects that may unduly prolong a final review.

First, several additional reviews from 3rd parties may make this process very frustrating. The time this takes will depend on the number of 3rd parties doing a review. Transactions involving, for example, Mortgage Insurance Companies or Government agencies will usually take longer than usual.

Second, there may be a problem with the offer amount. The bank/investor evaluates a property at a certain amount and makes an initial approval. But when you submit your offer, they may feel it doesn’t amount to the value of the property as accessed by them. If the bank feels the offer amount is too low, the final approval may equally take longer than usual.

In this light, we may have to dispute the bank’s appraisal of the property. Such disputes may take longer, but it may ensure that you have a very lucrative offer that the bank/investor will accept.

But like I earlier said, you need to be patient and trust the short sale experts at Bright Horizon. We will get you over the line.

Question 6

Stage #6 Transaction Approval and Conclusion

Accepted Answer

Possible Duration: At least 30 days following short sale final approval

A short sale transaction gets to this stage when we receive a final approval letter. This letter must be error-free and acceptable to the homeowner. Going through all these stages, especially stage 5, it’d be negligent for you to relax at this stage. We know how long it takes to get a loan from a bank, but any delays at this stage may cause unforeseen changes.

Therefore, you MUST make the bank aware of the urgency of the matter so that they can approve your loan fast and you can conclude your short sale.

You can trust Bright Horizon to always give you the best guidance, and orientate you towards concluding a hinge-free short sale.

Stages of a Short Sale