How do I complete my portion of the short sale gets asked a lot by homeowner who are having trouble moving forward on their short sales. There are many reasons for hang ups but one of the number one reasons is the incomplete filling out of the Customer Portal. There is a need to convert documents in to electronic formats. The homeowner is expected to fill out several forms and balance their finances in the system for the negotiator. Painting the correct portrait is very important at this point in time because it might differentiate whether or not the lender may try to seek a difficiency on the remainding balance or if they want some sort or promissory note which could also include a cash contribution at closing. It is important that everything be managed with care and homeowners finding assistance from a short sale company in most cases is recommended. Many times companies such as Absolute Consultant Group (ACG) do not charge anything at all while earning on the back end through the close of escrow through fees approved by the bank themselves to be paid out of the net of their proceeds.
Below we have gotten a hold of a brief run down as to what needs to be done on the homeowner’s side of the Equator portal.
Image via Wikipedia
Short Sale Processing Help
Tutorial
Initial Offer: By providing information about the offer, specifically the offer amount and the listing date, an initial response can be provided to inform you if the stated offer amount is sufficient to enter into the short sale process. Please note that no more than 3 offers can be submitted for review in any 7 day period.
Select Agent: All potential short sale properties must be listed with a licensed real estate agent. Use this section to either activate your agent’s access for this system or to select an agent from an area search. Please note that your agent will be required to access the system to update additional information regarding the short sale offer.
Contact Info: Please provide your updated information to reflect how we can best reach you regarding your short sale request. This contact information is required in order to schedule the necessary interior valuation of the property, if needed.
Hardship Reason: Questions related to the Hardship Reason you provided the customer service team will be presented for your response via the system. A comment box is also provided to allow input of specific details you have experienced with this Hardship Reason. Please also upload all of the supporting financial documentation that is requested, including current Bank Statements, Pay Stubs and the past 2 years’ Tax Returns. If the Hardship Reason that is listed does not accurately describe your situation, please contact a short sale representative at 1-866-880-1232.
Financials: The required information provides an overview of your current financial situation. Please answer all of the questions within this section which will include information regarding your income, expenses and debt.
Borrower / Agent Status: The status provides a reference as to what stage of the process the short sale offer is in. Utilize the Tutorial section as well as the Glossary to determine what steps need to be completed in order to advance to the next stage of the process.
Library: This section stores the imaged documents that have been provided for the short sale offer. Please review the Tutorial to determine what documentation is required for the short sale review.
Messages: The “Messages” section will provide brief communications from Bank of America regarding the review of your short sale. For the most expedient decision of your offer, any message should be reviewed and responded to (if applicable) within 24 – 48 hours of receipt.
Financials Page
Glossary Definitions
Unemployed
Not currently working; not receiving a paycheck.
Severance Package
Compensation received from employer for sudden job loss; usually related to layoffs.
Curtailment of Income
Currently employed but has experienced a reduction in the amount of income.
Short-term / Long-term
Long-term: Time period lasting 6 months or longer Short-term: Time period lasting less than 6 months
Excessive Use of Credit
Over extended on lines of credit which has dramatically increased monthly minimum payment amount.
Outside Advice
Debt Counselor, Local HUD Office, Government, Family
Family
Spouse, Child, Parent, Life Partner
Marital Difficulties
Separation, Divorce, Incarceration
Voluntary Funds
Amount of money that can be contributed to the short sale offer
Government Benefits
Unemployment, Disability, Social Security, etc.
Rental Income
Money received from tenant as payment for rental property.
HOA Dues
Home Owner’s Association Dues
Union Dues
Employment Union Dues (meaning that employment is through a Union)
IRA / Keogh Accounts
Contributions to retirement accounts
Status Definitions
Borrower Status
Initial Offer: Awaiting borrower to submit information about the offer, specifically the offer amount and listing date, in the “Initial Offer” section.
Collect Documents: Borrower must complete all four sections including: Select an Agent, Contact Info, Hardship Reason and Financials.
Borrower Docs Complete: All of the Borrower required information has been submitted. The short sale review is now awaiting the agent to submit additional information about the offer.
Agent Status
Accept Assignment: The Borrower has completed the “Select an Agent” task. The agent must now accept the assignment and submit the “Limited Power of Attorney” document.
Verify Docs: Agent must upload the required offer related documentation, specifically the Purchase Agreement and initial Settlement Statement/HUD-1, for our short sale representative to review. Additionally, the agent must enter the itemized closing costs that are being submitted for review.
Borrower Docs Complete: All of the information submitted by the Borrower and Broker must be reviewed by the short sale representative to verify the data and documentation.
Borrower/Agent Status
Collecting Values: The short sale review is pending receipt of the requested property value (s) and/or payoff information for any property liens.
Negotiate: A final decision of the short sale offer is pending with the Investor, Insurer and/or management. Please respond to any correspondence from the short sale representative, which may include a request to adjust the listed closing costs or the offer amount.
Decline: The short sale offer that was submitted could not be approved at this time. If a new buyer or new offer is received for the property, please submit it for consideration.
Closing (Qualified): The approved short sale offer is pending close of escrow and/or receipt of the sale proceeds.
Closing: The short sale proceeds have been received and are being processed.
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Jonathan Katz started in the Loss Mitigation industry in early 2000's. He worked for the one of the largest loan servicers in the US in their loss mitigation/foreclosure department. Speaking with approximately a work flow of 600 cases a month and several years of experience he created an organization dedicated to helping homeowners. Our Goal here is to increase the accuracy of the information found on the internet amidst a sea of nonsensical logic about a business that is anything but outside of the box. 
