FHA Short Sale Process

1. FHA Short Sale Process
• The client will work
with a Client Service
Representative (CSR) &
Processor team
• This team
communicates with the
client at a minimum of
every two weeks,
requesting updated
monthly financial
documents, submitting
required documents to
the lender for program
approval and
communicating with the
lender and real estate
agent
• The Cogburn Law Closing
Coordinator completes
the final steps of the
short sale process with
client
• The lender issues a
Short Sale Approval Letter
• Jamie Cogburn reviews
the terms of the letter
and ensures the client is
protected
• The client signs at the
title company, to make
sure the buyer is
prepared to close escrow
• Closing Coordinator
sends client a closing
email, confirming escrow
has been closed
30-120 Days10 Days 120 Days 30-60 Days
• Cogburn Law submits
client’s file (to HUD) for
pre-foreclosure sale
program review of all loss
mitigation options,
including loan
modification and
forbearance plan
• The review process
determines if the
homeowner is
experiencing a justifiable
hardship and if a short
sale is appropriate
• Client must be denied by
the lender for a loan
modification before a
short sale is considered
• If an offer is received on
the property before short
sale approval, it cannot
be accepted until all loss
mitigation solutions have
been considered
• The lender orders an
FHA appraisal to
determine the current
market value of the
property
• HUD issues an Approval
to Participate Letter,
outlining timelines,
required net proceeds
and financial incentives
• The lender issues the
approved property value,
which is communicated
to the real estate agent
• Upon receipt of the
buyer’s offer, Cogburn
Law Offices submits the
offer at the approved
market value to the
lender
• The Processor works
with the Cogburn Law
attorney to negotiate
approval with the lender