PennyMac

Short Sale Telephone: 866-545-9070   |   Short Sale Fax: 866-577-7205

Required for Initiation

  1. Loan Number
  2. Last 4 digits of the SSN
  3. Property Zip Code

All documents must be emailed and/or faxed directly to the lender.

To initiate the process, fax:

  1. PSA
  2. HUD
  3. Buyer Pre-Approval/Buyer Proof of Funds
  4. Borrower financial information (see Doc Pac)
  5. Listing Agreement
  6. 4506T Form

The Process

PennyMac negotiates short sales through a streamlined process. One Single Point of Contact (SPOC) is assigned to negotiate the file from initiation through closing.

Timeline for Approval

  1. Initiate the short sale by faxing Short Sale Package (3-5 days)
  2. Lender assigns SPOC
  3. SPOC processes files and collects documents (5-14 days)
  4. SPOC will compile and email a list of any additional documents needed
    1. Note: This time frame is highly dependent on how quickly the buyer/seller can return requested documents to the lender
  5. SPOC orders BPO
  6. SPOC reviews and responds to offer (7-15 days)
    1. Note: This time frame is highly dependent on how quickly the buyer/seller can return requested documents to the lender
  7. After agreement on terms, SPOC submits for final approval to Investor (3-7 days)
  8. Investor issues approval letter, SPOC sends to borrower rep (3-5 days)
  9. SPOC monitors file through closing

Four Lender Specific Tips

  1. Expedite the Process: PennyMac, unlike other lenders, is extremely responsive and proactive in negotiations of short sales. Receive an approval in under 40-days by providing them what they need within 48 hours, same-day if possible.
  2. Complete Documents: Check every box, date every line, write “n/a” in every in every non-applicable section. Cut down on document collection time by submitting complete documents.
  3. Communicate predominately through email: Communicate predominately through email: PennyMac is most responsive to direct email with the SPOC. Cut down on phone time by emailing through email.
  4. Leave a voicemail: The SPOC is responsive to direct phone calls and voicemails.

Value Dispute Procedure:

Lender counters the offer higher than the parties believe the property is worth.

  1. Respond to lender's counter with the buyer's highest and best
  2. Provide an independent appraisal or full agent MLS sheets for three comparable sales (providing all characteristics), and if available, three active comparable property MLS sheets
  3. Provide a CMA report
  4. Comparable requirements:
    1. Closed sales no more than six months old
    2. Similar in size, age, condition and characteristics
    3. Within one mile proximity of the subject property; OR
  5. If there are Repair/Hazard Issues:
    1. Provide a line item repair estimate from a licensed contractor or engineer on business letterhead with the costs to cure the damage
    2. Provide photos of the damage
      1. Note: Excessive photos will be rejected
      2. Place photos in a zip file if sending more than three
  6. Time given to provide documents for value dispute: 24-48 hours
  7. Potential wait time for value dispute results: 2-4 weeks
    1. Note: This time can be expedited if you provide a complete dispute package and follow-up every 2-3 days.

Lender Specific Documents

  1. PennyMac Initial Short Sale Package
  2. Hardship Affidavit
  3. Borrower’s Financial Statement
  4. 4605T
  5. Third Party Authorization Request Form
  6. Agent Information
  7. PennyMac Information Sheet (Names only, no signatures needed):
    1. Seller’s Name
    2. Buyer’s Name
    3. Real Estate Agents
    4. Transaction Facilitator
    5. Title/Escrow Agent

Lender Escalation Procedure

Compared to other lenders, escalations will likely not be necessary with PennyMac, as their staff generally responds very timely. If you need to escalate a file, the SPOC’s signature line contains an email address for their direct supervisor for escalation purposes.

Closing Process

  1. Send final HUD for approval: PennyMac reviews the HUD-1 Settlement Statement for final approval 48 hours prior to closing.
    1. Note: PennyMac is not strict about the 48 hour deadline, but does need to approve the HUD prior to closing.
  2. Sign and Return Final Closing Materials: Upon approval, Wells Fargo issues closing instructions and requests signatures on final closing documents.
    1. E.g. Short Sale Arms Length Affidavit, HAFA Affidavit, Approval Letter, Insurance paperwork etc.
    2. Email documents to SPOC.
  3. Processing Tips:
    1. Include last name and loan number in the subject line of all email correspondence
    2. Include a forwarding address for the seller

Approval Extensions

To request an extension of an approval:

  1. Reach out to the SPOC via email
  2. State your request including the intended closing date
  3. Call and email to follow-up