Cooperative Short Sale

If you already applied for a loan modification and did not qualify, you may be able to start the short sale process right away. However, in most cases, we are required to evaluate whether you are eligible for a loan modification or other home retention options before we can proceed with any requests to pursue a short sale.

If you are eligible for a short sale, during the initial call, we'll discuss your current financial situation, confirm your eligibility and make sure we have all the needed documentation. You'll also be connected with a Customer Relationship Manager who will work with you throughout the process.

If we authorize you to start the short sale process, we'll work to gain approvals. Even if you're pursuing a short sale with us, in most cases there's a third party who has ownership of the loan. We'll need their approval in order to finalize the short sale. A valuation of the property will be performed at no cost to you. Then you'll receive a valuation letter with the recommended list price for the property and your next steps.

Typically, you'll have up to 120 calendar days to sell your house at the price in the valuation letter.

You're required to work with a licensed real estate professional. We recommend working with a real estate agent experienced in short sales who understands the process.

Once you receive an offer, your real estate agent will submit:

• Copy of the executed sales contract and all additional documents
• Buyer's proof of funds or pre-approval or commitment letter on letterhead from the buyer's lender
• An update on the status of any additional liens on the property

We'll review the information and get back to you with a decision within ten business days. Your agent must submit documents on time and respond quickly to any counteroffers.

If we accept the offer, you'll receive

• An approval letter listing our requirements to complete the sale:
• Details of the sale of your house
• A set of documents that must be signed, notarized and returned to us

In order to complete the sale, we must receive all documents by the deadline that we provided in your approval letter.

At the closing, you could receive up to $3,000¹ to help with moving, rental and other relocation expenses. For tax purposes, relocation assistance paid at closing is considered income. Please consult a tax advisor for more information on how this could affect you.

Once the sale is finalized, your mortgage and any other loans against the house are settled from the proceeds of the sale.

If we forgive any amount of mortgage debt, there may be possible tax consequences. Please consult a tax advisor for more information about how this could affect you.

We'll report the sale to the major credit reporting agencies as completed for less than the amount owed.