Tools & Resources
Steps in the Pre-Foreclosure Sale process
1. Call your Case Manager to discuss this process. Before calling in, gather the following information:
- Loan number and property information
- Details of the offer and a copy of the signed contract, if applicable
- Information on any home equity loans or lines of credit on the property, if applicable
- Details about your hardship
2. List the property for sale
If you haven't received an offer yet, please be aware that you're required to work with a licensed real estate professional to market and sell the property. We strongly recommend working with a real estate agent who is experienced in short sales and who can help guide you through the process. You may receive a phone call from an authorized PHH vendor to discuss the strategy for listing the property for sale and they may provide names of local realtors to assist you with listing and selling the property.
3. You've received an offer on your house
Your agent will need to submit the offer to us for consideration.
4. Decision process
Within 30 days of receiving your complete response package, we will determine if you are eligible to participate in the short-sale transaction. We will review and validate your hardship, which may include a full financial analysis of your application if required by your investor. Once you are deemed eligible to participate, we will send you a notification that you are pre-approved for the transaction and have 45 days to forward a short-sale offer. If you included the short-sale offer with your application and we have deemed you eligible to participate, we will begin the process of reviewing the offer immediately. A professional appraiser will contact your listing agent to perform a valuation of the property to determine the fair market value. Once the fair market value is determined, it’s possible we may make a counter offer. We will be working to obtain approval from the investor of your loan during the offer review process. When all necessary parties have accepted the offer, we will provide you with an approval letter and a closing instruction package releasing the house for purchase.
5. Offer accepted
Final documents will be prepared and your real estate agent will work with you to set a closing date. After the closing, the sale of the property is complete.
NOTE: If the funds from your traditional short sale don't cover the amount owed on your loan, you may be responsible for paying the deficiency.
Ready to apply? CLICK HERE and scroll down to the bottom section, "Having Trouble Paying Your Mortgage?" After you click the "Get started" link you will be taken to a log-in page where you will need to register in order to log in.