Short Sale Telephone: 888-917-6004   |   Short Sale Fax: 877-649-0743

Required for Initiation

  1. Loan Number
  2. Last 4 digits of SSN
  3. Property Address
  4. Seller’s Last Name

To expedite initiation, submit:

  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
  7. Hardship letter
  8. Third-party authorization

The Process

Seterus negotiates in three structured phases: Processing, Negotiation, and Closing.

A different person is assigned each role:

Processors: Collect additional documents, request document corrections, order appraisal, complete the file

Negotiators: Respond to the offer, respond to investor fee caps, determine relocation incentive eligibility, request investor-specific requirements, determine cash contribution requirements

Closers: Issue final HUD and extensions at the close of the transaction

Timeline for Approval

Seterus quotes 45 days to complete a short sale. This number varies depending on how quickly the parties respond to requests:

  1. Manually fax the short sale package, wait for documents to be uploaded (3-7 days)
    1. Note: If the PSA and the HUD are submitted with initial documents, the file will be assigned directly to a negotiator
  2. Processor/negotiator collects documents and orders the BPO (5-30 days)
    1. Note: This time frame is contingent upon how quickly the buyer/seller can return requested documents to the lender.
  3. Negotiator reviews and responds to offer (10-15 days)
  4. After agreement on terms, negotiator submits for final approval to Investor (3-5 days)
  5. Investor issues approval letter
  6. Lender assigns Closer

Four Lender Specific Tips

  1. Skip the Processing phase: Submit a HUD and PSA at the outset to skip the Processing phase. If Seterus receives a HUD and PSA at the get-go, they will assign the file directly to a negotiator.
  2. Communicate primarily through secure email: Both Processors and Negotiators communicate through secure email. Request their address at the outset to avoid delays.
  3. Expedite the Process: Seterus, unlike other lenders, will respond at the same pace the parties respond. Receive an approval in under 40-days by providing them what they need within 48 hours, same-day if possible.
  4. 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.

Value Dispute Procedure:

Seterus reviews all value dispute requests through

  1. Initiate the value dispute on
    1. Follow the links on the website for initiation
  2. Submit Homepath’s specific authorization
  3. Provide a CMA report which includes:
    1. 3 sold listings with all characteristics
    2. Any repair bills and/or estimates for the property
    3. Any additional information which may be helpful

All documents must be submitted within 48 hours.

Lender Specific Documents

Lender Escalation Procedure

Compared to other lenders, escalations will likely not be necessary; however, Seterus allows escalation requests if no response has been received in 72 hours:

  1. Request to speak to a supervisor
  2. Wait 72 hours (per Seterus guidelines)
  3. If no response within 72 hours, call back and state that you have received no response
  4. Make another escalation request
  5. Follow-up in 48 hours and request to speak to someone immediately

Closing Process

  1. Send final HUD for approval: Seterus reviews for final approval of the HUD-1 Settlement Statement 48 hours prior to closing.
    1. Email HUD-1 directly to your closer
  2. Sign and Return Final Closing Materials: Seterus issues closing instructions and requests for signatures on the short sale approval letter, as well as other documents:
    1. E.g. Short Sale Arms Length Affidavit, HAFA Affidavit, Unearned Insurance, etc.