Short Sale CASE STUDY: 001

The Anatomy of a Short Sale

This is the 1st post in a series that will document the short sale process step by step. I have identified a new short sale that I have just started and will post in this CASE STUDY every time I touch the file.

There are a few different reasons I am doing this:

#1 – To Teach

Over the past 7 years I have acquired a vast amount of knowledge on short sales. I have recently begun teaching credit hours for agents in my local market and find it very rewarding to help others be successful.

#2 – To Learn

Although I have worked on over 200 short sales, each one is different in some way.  The variables are endless and the process is always evolving.  New programs are being rolled out, lenders are developing new ways to improve the process internally and homeowners are facing new hardships.  By committing to documenting the process on this short sale, I hope to learn how to become more efficient, anticipate pitfalls and try and get an approval as quickly as possible.

#3 – To get organized

As my business grows, I am at the point that I need to develop a system that can be followed by a growing processing staff. This system needs to be scaleable, universal, and easy to learn. This presents a huge challenge since each file is unique.  I believe that documenting a short sale step-by-step will help me to identify universal truths in the anatomy of a short sale. These universal truths will be used in future education material.

Of course I will need to keep the names of the sellers and the property address confidential but I will try and use as much information as possible without giving away confidential information.  I will spell out who the lender is, what the sellers hardship is and if they qualify for any of the short sale programs that are available today (HAFA).

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It is important to note that this short sale is located in Oregon and so the process may be different depending on your state.  You can visit to check out some important laws in your state.  I say this because Oregon has recently passed laws that affect the way a lender can foreclose on a property.  There are also certain situations where the deficiency balance can be eliminated through foreclosure and other instances where it remains.  Each state has different laws around this and that can affect the way you and the lender negotiate a short sale.

Feel free to comment if you would like to join me in this process.

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