Instructions: Submitting Offers on Short Sales (handled by Short Sale Connections)

It may help to reference this illustrated timeline when reading the following. Rather, it will help if you are a tactile, visual person like I am.


Short Sale Connections Fee
Short Sale Connections (Oregon Home Savers, LLC) is the professional short sale company that does all the negotiation and processing for this short sale, and it charges a $3,999.00 fee for its services (the “Consultant Fee”). The seller has agreed to use its services, and this fee is charged to the buyer. Understand that if the transaction on the property is not closed, no fee will be charged to either the buyer or the seller.

Purchase Agreement
The Consultant Fee will need to be included on the Purchase Agreement, payable by the buyer. On page 2, Line 55, in the Earnest Money Agreement under Additional Provisions, include “Buyer to pay $3,999.00 to Oregon Home Savers, LLC.”

Short Sale Addendum & Summary
Download the most current forms from RMLS and have your buyers sign them at the time of writing an offer to avoid having to obtain these signatures later. Please submit the Short Sale Addendum with the offer.

Closing Date
To avoid having to submit extensions while waiting for the lender’s response, please write the contract this way: “Upon written lender approval, buyer has 30 days to close”.

Contingencies
Short sales have a third party contingency already, so contingencies from the buyer, such as requiring sale of a home, are generally not acceptable to financial institutions.

Escrow & Earnest Money
A promissory note is an effective tool in short sales and is recommended. Until you have written lender acceptance on your offer, not just the seller’s acceptance, you should not deposit earnest money or open escrow.


Important: the following documents must be included when submitting an offer:

• RMLS Short Sale Addendum (download the most current version from RMLS)
• Buyer’s Pre-Approval letter or proof of funds

Loan Documents / Loan Locks / Financing:
Buyer’s financing should be completed up to inspection and appraisal so that closing can move quickly. Loan documents, appraisal, and inspections should not be ordered until ALL approvals are obtained from all lenders/lien holders. If a buyer chooses to lock in their interest rate prior to third party approvals, Short Sales Connections is (are?) not responsible for rate extensions, expirations, or costs that may occur to the buyers regarding rate/fees.


Nick.