Select Portfolio Services (SPS)
Short Sale Telephone: 888-349-8960 | Short Sale Fax: 801-270-7833 | Document Submission Email: email@example.com
Note: Email is the best way to send documents to SPS. Write only the loan number in the subject line.
Required for Initiation
All documents must be emailed and/or faxed directly to the lender.
To initiate the process, fax:
- Buyer Pre-Approval/Buyer Proof of Funds
- Borrower financial information (see Doc Pac)
- Listing Agreement
- 4506T Form
SPS negotiates short sales without the use of Equator. SPS negotiates and communicates through two departments:
Customer Service: Provide updates, upload received documents, forward documents/information to underwriters, communicate on behalf of the underwriters, request initial document corrections/additions, order the BPO
Underwriters: Review and respond to the offer, respond to investor fee caps, determine relocation incentive eligibility, request investor-specific requirements, determine cash contribution requirements, close approved files
Timeline for Approval
- Manually fax short sale package, wait for lender to upload documents (3-5 days)
- Note: Without a call to follow-up after submission, uploading could take up to 15 days
- Document collection/correction by Customer Service (5-14 days)
- Note: This time frame is highly dependent on how quickly the buyer/seller can return requested documents to the lender
- Complete file (with BPO) forwarded to underwriter for review (5-10 days)
- Underwriter reviews and responds to offer (15-40 days)
- Underwriter approves and issues approval letter (3-5 days)
Four Lender Specific Tips
- Email Documents: Customer service has the ability to retrieve documents emailed to: firstname.lastname@example.org.
- Write the loan number in the subject line of the email.
- Call the next day to follow-up on the emailed documents.
- Offer to be put on hold with the Customer Service Representative while they retrieve and upload the document.
- Specifically Request they “forward to the underwriters”: After documents are uploaded, use the phrase “forward to the underwriters” to request customer service send the documents to the underwriters in real time.
- Check expiration dates: Make sure listing expirations, contract expirations, and HUD-1 closing dates allow enough time for complete underwriter review (2-3 months from the initiation date). This way, the documents don’t expire while in review; underwriters can request the file be placed on hold pending valid expiration dates.
- Call Regularly: Unlike other servicers, SPS’ customer service agents have the ability to move files forward by uploading, sending and communicating on behalf of the underwriter. Request their help and follow-up regularly.
Value Dispute Procedure:
Lender counters the offer higher than the parties believe the property is worth.
- Respond to lender's counter with the buyer's highest and best
- 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
- Provide a CMA report
- Comparable requirements:
- Closed sales no more than six months old
- Similar in size, age, condition and characteristics
- Within one mile proximity of the subject property; OR
- If there are Repair/Hazard Issues:
- Provide a line item repair estimate from a licensed contractor or engineer on business letterhead with the costs to cure the damage
- Provide photos of the damage
- Note: Excessive photos will be rejected
- Place photos in a zip file if sending more than three
- Time given to provide documents for value dispute: 24-48 hours
- Potential wait time for value dispute results: 2-4 weeks
- Note: This time can be expedited if you provide a complete dispute package and follow-up every 2-3 days.
Lender Specific Documents
Compared to other lenders, SPS doesn’t require many lender-specific documents before closing.
Lender Escalation Procedure
Compared to other lenders, escalations will likely not be necessary with SPS. Per servicer guidelines, agents, attorneys, brokers, homeowners, borrowers etc. are not allowed to communicate directly with the underwriting team.
Once a file is in review with the underwriting team, if there has been no new note made on the account by the underwriting team in 10-days:
- Request Customer Service send a note to the underwriters asking for a response
- If no response or notation on the account file 5-days, ask to speak to a supervisor in the Customer Service department
- State that you believe your file has not been reviewed in 15-days
- Document the supervisor’s name
- If no response or notation on the account within 3-days, ask to speak to the same supervisor
- State that you believe your file has not been reviewed in 18-days
- Request the supervisor reach out directly to a supervisor in the underwriting department
- Send final HUD for approval: SPS reviews the HUD-1 Settlement Statement for final approval 48 hours prior to closing
- Send documents to: 801-293-3936 and 801-269-4250; and to email@example.com
- Call to follow-up if you receive no response after 48 hours: 866-820-6218 with the five-digit extension from the approval letter.
- Ask the person on the phone if they can review the HUD. Offer to stay on hold while he/she reviews.
- Sign and Return Final Closing Materials: SPS includes required documents for closing with their approval letter. Request signatures on requested documents:
- E.g. Short Sale Arms Length Affidavit, HAFA Affidavit, Approval Letter, Insurance paperwork etc.
- Fax final documents to 801-293-3936 within 1 business day of closing
- Processing Tips:
- Include loan number in the subject line of all email correspondence
- Include a forwarding address for the seller
To request an extension of an approval:
- Reach out to your contact listed on the approval letter via phone to make request
- Fax request in writing to: firstname.lastname@example.org
- Call and email to follow-up daily
- Make sure to have all requests (both verbal and written) to be “forwarded to the underwriters.