Short Sale Telephone: 800-393-4887 | Short Sale Fax: 866-234-9845
Sample Email Format for Assigned Party: Firstname.Lastname@flagstar.com
Required for Initiation
To initiate, fax:
- Buyer Pre-Approval/Buyer Proof of Funds
- Borrower financial information (see Doc Pac)
- Listing Agreement
- 4506T Form
- MLS Sheet
- 7 page RMA form
- Third Party Authorization
Flagstar assigns a Single Point of Contact from initiation through closing. The file is negotiated through two phases: Processing and Underwriting
- Processing: Collect additional documents, request document corrections, order appraisal, complete the file
- Underwriting: Respond to the offer, respond to investor fee caps, determine relocation incentive eligibility, request investor-specific requirements, determine cash contribution requirements
Timeline for Approval
- Manually fax the short sale package, wait for the documents to be uploaded (5-7 days)
- Note: Call 48 hours after the documents are faxed to confirm receipt
- Lender assigns SPOC (3-5 days)
- SPOC sends file to Processor (3-5 days)
- Processor reviews for corrections/additional document requests, orders BPO (7-20 days)
- Processors sends to underwriting with completed BPO (3-5 days)
- Underwriting reviews and responds to offer (5-10 days)
- Investor reviews and issues approval (5-7 days)
Four Lender Specific Tips
- Request SPOC email immediately: Customer service does not have access to the file notes and cannot provide a meaningful update. Request your SPOC’s email address and extension immediately.
- Investor approves bulk closing costs: Flagstar approval letters do not approve line item fees. Call to ensure your HUD matches the approved terms before closing.
- Follow-Up Constantly: Compared to other lenders, your SPOC is difficult to reach. Call every 48 hours until you are able to reach your contact for a meaningful update.
- Provide BPO Contact Immediately: Provide BPO contact information to your SPOC early.
Value Dispute Procedure:
Lender counters the offer higher than the parties believe the property is worth.
Lender Escalation Procedure
Compared to other lenders, escalations will likely be necessary with Flagstar:
If a file hasn’t been notated or moved in 7-days:
- Send an email to your SPOC and have customer service send and internal email requesting a response
- Wait 48 hours
- If no response, send email to your SPOC, have customer service send and internal email requesting a response
- Wait 48 hours
- Request to speak to a supervisor
- Note: Customer service is trained to prevent calls from going to a direct supervisor; be prepared to make the request 3-5 times
- Send final HUD for approval: Flagstar reviews for final approval of the HUD-1 Settlement Statement 48 hours prior to closing.
- Fax the HUD-1 to Closer
- Sign and Return Final Closing Materials: Flagstar issues closing instructions and requests signatures on the short sale approval letter, as well as other documents:
- E.g. Short Sale Arms Length Affidavit, HAFA Affidavit, Unearned Insurance, etc.
- Processing Tips:
- Include the loan number, property address, and lender name on the cover sheet for each fax
- Provide the seller’s forwarding address (usually asked for explicitly in the approval letter)
To request an extension of an approval:
- Reach out to your contact listed on the approval letter via phone to make request
- Fax the request in writing
- Call and email to follow-up daily until it is receive via fax