Homeowners

A short sale is a foreclosure alternative where your home is worth less then what is owed on the current mortgage. Capital Short Sale Group will work directly with your mortgage company, facilitate the transaction from start to finish and take on all the heavy lifting.

Here is how the process works:

  • Your lender will require you to list your home with a local real estate professional.
  • If you don’t currently have an agent, we’ve partnered with some of the top Realtors in the state and can help match you with the best possible fit.

Your lender will require the following documentation to process your short sale. If these are not available, a simple letter of explanation will suffice:

  • 30 Days Of Your Most Recent Proof Of Income
  • 60 Days Of Your Most Recent Bank Statements
  • Last Two Years Of Tax Returns
  • Mortgage Statement With Account Number
  • Hardship Letter

If the Borrower is deceased, please provide:

  • Death Certificate
  • Letters of Administration Naming The Personal Representative

  • Because we have successfully worked with 50+ mortgage companies, we have all the specific forms that each lender will require. Before you even receive an offer on your home, we will carefully prepare your short sale package outlining your financial hardship and submit the package to your mortgage company for their initial review. Be prepared, they’re likely to ask for additional documentation to substantiate your situation throughout the review.
  • A full title search will be conducted and any additional liens/judgments that may hinder your home’s title will also be negotiated. The negotiations may consist of a partial lien release to lift the lien from the property to allow the sale, or a full satisfaction.

  • Once you accept an offer on your home, your lender will order an appraisal or BPO. A BPO is similar to an appraisal, but by a licensed real estate agent.
  • This will allow your mortgage company to identify what your home’s value is and what they’ll accept as a purchase price. As a courtesy, we have a representative from our company present at every valuation to ensure accuracy and access.
  • Once an appraisal/BPO is completed, we will review the value and discuss next steps with you and your Realtor.

An Approval Letter is a document you’ll receive when the file is accepted and finalized by your mortgage company. The letter will contain certain terms and conditions including:

  • Approved purchase price
  • Approved Buyer
  • If there is any potential deficiency liabilities
  • Expiration Date of the approval letter

Approval Letters are Buyer specific. If there are any changes to fees or participants, additional review and approval will be required by your mortgage company.

Once a closing date is scheduled, there are a few steps we need to take to finalize your short sale:

  • 3 days prior to closing, we will submit the final settlement statement to your lender to obtain “approval to close.”
  • Once your settlement is complete, all closing documents will be submitted back to the mortgage company for final review.
  • Even though your home has sold and transferred ownership, we stay on and continue to work with you and your lender until we receive verification that your loan is closed and the transaction is complete.

Company Forms

Seller Forms Buyer Forms

Contact

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443-873-0543
Welcome@CapitalShortSale.Com Contact Us
Parkville Location
9512 Harford Road, Suite 7
Parkville, MD 21234
Owings Mills Location
10461 Mill Run Circle, Suite 125
Owings Mills, MD 21117

Here is how the process works:

1. List your Home For Sale

Your lender will require you to list your home active on the local MLS. If you don’t currently have an agent, we are partnered with some of the top Realtors in the state and can help match you with the best possible fit.

2. Document Collection

All borrowers on the mortgage will need to gather the following documentation so your mortgage company can verify that you truly have a hardship:

  1. 30 days of most recent proof of income
    1. Proof of income can include: pay stubs, disability award letter, pension award letter, etc
    2. If you are unemployed and not receiving any income, a simple letter from you stating this would qualify.
  2. 60 days of most recent bank statements
    1. All accounts, all pages
  3. Entire last two years of tax returns
    1. federal and state including all schedules.
  4. Mortgage statements with account numbers
  5. Hardship letter
    1. A simple, one to two paragraph letter explaining what happened, your mortgage hardship and why you no longer can afford your payments.

If the borrower is deceased, we’ll need the following documents:

  1. Death Certificate for deceased borrower
  2. Letters of Administration naming the personal representative of the estate.

3. Package Submission

  1. Because we have successfully worked with 50+ mortgage companies, we have all the specific forms that each lender will require. Before you even receive an offer on your home, we will carefully prepare your short sale package outlining your story of financial hardship and submit the package to your mortgage company for their initial review. Be prepared, they’re likely to ask for additional documentation to substantiate your situation.
  2. A full title search will be conducted and any additional liens/judgments that may hinder selling your home will also be negotiated. The negotiations may consist of a partial lien release simply lifting the lien from the property to allow the sale or a full satisfaction.

4. Contract Submission & Valuation

  1. Once you accept an offer on your home, your lender will order an appraisal or BPO. A BPO is similar to an appraisal, but by a licensed real estate agent. This will allow your mortgage company to identify what your home is actually worth and what they’ll accept as a purchase price. As a courtesy, we have a representative from our office present at every valuation to ensure there are no accuracy or access issues.
  2. Once an appraisal/BPO is completed, we will review the value and determine next steps
    1. If the value is too high, a value dispute will be submitted with supporting documentation such as market comparables, contractor estimates or an independent third party appraisal.
    2. Is the value is sufficient, we will obtain the required offer amount or net that the lender needs and inform all parties so we can finalize terms and get the approval letter.

5. Short Sale Approval

  1. The short sale approval letter will outline all terms and conditions of the short sale approval. Approval letters state the following information:
    1. Approved purchase price and required net
    2. Approved Buyer
    3. Terms of the Deficiency:
      1. Deficiency is the remaining balance left on the mortgage after the sale is complete. Typically, the lender will waive this balance and waive their right to pursue the deficiency. We won’t know for sure until we have the approval letter, but if you’re uncomfortable with the terms, you are not required to accept the short sale.
    4. Expiration Date of the approval letter

6. Closing!

  1. Once a closing date is scheduled, there are a few steps we need to take to finalize your transaction:
    1. 3 days prior to closing, we will submit the final settlement statement to your lender to obtain “approval to close”
    2. Once closing is complete, we will send all closing documents along with the sale proceeds to your lender to close out their file.
    3. We will stay on and continue to work with you and your mortgage company until we receive verification that the funds from the sale have been applied and the file is completed entirely. This could take an additional 1-3 weeks after closing.

October 25, 2021