It depends mostly on how quickly your lender reviews your package. Plan on months, not weeks, and start before a foreclosure sale date is set.
It depends mostly on how quickly your lender reviews your package. Plan on months, not weeks, and start before a foreclosure sale date is set.
The stages
Hardship package. You submit financial documents and a hardship letter.
Listing and offer. The home is listed, or you find a buyer, and you accept an offer subject to lender approval.
Lender review. The lender evaluates the package, orders a valuation, and decides. This is the longest and least predictable stage.
Approval letter. The lender approves a price and terms, including whether it waives the deficiency.
Closing. It usually has to happen within the lender’s approval window.
What speeds it up
A complete package the first time
A realistic price backed by comparable sales
A strong, well-documented offer
One point of contact who follows up with the lender
Starting before a foreclosure sale date
What slows it down
Missing documents or an outdated package
A price the lender’s valuation does not support
More than one lien, such as a second mortgage or HOA
A buyer whose financing falls through
A switch to a new loan servicer mid-process
Should you wait for approval to move?
No. Start early. Lenders move on their own schedule, and a foreclosure date does not wait for a short sale.
What to do this week
Gather proof of income, two months of bank statements, your last tax return, and a hardship letter. I have closed 400+ short sales with deficiency waivers secured, and I will tell you where your file is likely to get stuck. Send me the address and your lender’s name.
General education, not legal, tax or investment advice. Discuss your circumstances with a licensed Florida attorney or tax professional. Yoganand Ganeshram PA, licensed Florida real estate agent with eXp Realty. Equal Housing Opportunity.
Originally published on Equity Edge Orlando. Reviewed for this Substack edition.