Overview of Short Sales
If you are concerned that your home may go into or is in foreclosure, and you have not qualified for another option or do not wish to retain your home, a short sale is an option to consider.
A short sale allows you to sell your home for less than the remaining balance on your loan. The agreed upon net sale price of the home must be acceptable to the owner of your loan. The debt may be satisfied at the agreed upon sale price and terms. If the short sale is completed, you will not be responsible for the costs of sale (e.g., broker fees). Relocation assistance may be offered.
Is a short sale right for you?
You may be eligible for a short sale if:
- You have a financial hardship, such as a job loss, divorce or medical emergency
- You owe more on your mortgage than your home is worth
- You are unable to afford your current monthly mortgage payment
- You are unable to modify your current loan or do not want to retain ownership of your home
It is advisable to contact Rushmore before beginning a short sale process. We will work with you to determine an appropriate selling price and to start obtaining the necessary approvals from your loan owner.
If you are interested in a short sale, call us at 888-504-7300. If your loan is owned by Fannie Mae or Freddie Mac, you may reach customer service for your loan by calling 888-616-5400. If you do not have a Home Retention Specialist (your single point of contact) already assigned to you, we will assign one. Your Home Retention Specialist will work with you through the entire process.
Your Home Retention Specialist will ask you some basic questions about your income, expenses, your home and your intentions about your home. You should have the following information available when you call:
- The reason why you cannot or expect not to be able to make your loan payments.
- The total amount of your income from all sources.
- An itemized list of your monthly expenses
- All outstanding debts or liens against your home.
You can also update your financial information (income and expenses) through our website. Just log in with your personal pin, click on “Home Loan Assistance” and the link to “Update Your Financial Data.” Once there, follow the on-screen instructions.
Your Home Retention Specialist will review this initial information and determine if a short sale is the best solution for your situation. You may be asked to provide documentation substantiating your income and certain expenses, as well as to submit a customer assistance application. We will also need to confirm the value and condition of your home. Therefore, you will have to provide access to your home for this purpose.
If your loan is owned by Fannie Mae or Freddie Mac, you will be evaluated for a short sale in accordance with their specific program guidelines. Please call customer service, toll-free, at 1-888-616-5400 for more information regarding Fannie or Freddie short sale guidelines.
The Sale Process
Before Receiving an Offer on Your Home
If a short sale seems to be the best solution, you should list your home for sale with a licensed real estate agent who has experience in short sales. The agent can guide you through the sale process.
In order to apply for a Short Sale, please submit the following documents:
- Offer letter outlining the sales price and buyer information.
- HUD1 Settlement Statement or Closing Disclosure.
- If the offer is a cash offer, proof of funds from the buyer.
- If the offer is a financed offer, pre-approval letter from the buyer’s bank or loan officer.
- If the loan has Mortgage Insurance, approval from the Mortgage Insurance Company. If approval is needed, additional documents may be required by the Mortgage Insurance Company. Please work with your SPOC to determine what additional items may be needed.
- An executed “Occupancy Certification” may be required, depending on the requirements of the owner of your loan.
Upon receipt of all required documents, Rushmore will work to obtain approval for your short sale from all necessary parties, including the owner of your loan. However, if you have a second mortgage with another lender or there are any other outstanding debts or liens against the property, it is your responsibility to get approval from those parties.
Once all necessary parties have approved the short sale, we will provide you with a Short Payoff Agreement releasing your home for purchase. Your agent will help you set a closing date. The approved short sale and Rushmore’s receipt of the agreed upon funds must occur within the timeframe set forth in your Short Payoff Agreement unless otherwise agreed.
After Your Home is Sold
Your loan and any other loans against your home will be paid from the proceeds of the sale or otherwise released. If the funds from your short sale do not cover the amount owed on your loan, you may be responsible for the difference, depending on the owner of your loan and if permitted by the laws of the state in which the property is located. Your responsibility for the remaining balance will be clearly disclosed up front in the Short Payoff Agreement.
Processing time for a short sale is generally 5 business days from the time we receive all required documents.