Specialized Loan Servicing (SLS)

Short Sale Telephone: 800-306-6059   |   Short Sale Fax: 720-241-7526   |   Email: crdocs@sls.net

Required for Initiation

  1. Loan Number
  2. Last 4 digits of the SSN

To initiate the process, fax and email:

  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

SLS assigns a Single Point of Contact who communicates all underwriting/agent decisions:

SPOC (Single Point of Contact): The SPOC is the liaison between borrower reps and SLS. They communicate on behalf of the underwriter, but do not have control over the status of the file.

Underwriter: Collect additional documents, request document corrections, order appraisal, complete the file, transfer to workout agent when complete.

Workout Agents/Negotiators: Respond to the offer, respond to investor fee caps, determine relocation incentive eligibility, request investor-specific requirements, determine cash contribution requirements, close the file.

Note: The workout agent may call you for answers to specific questions; however, most communication occurs through the SPOC.

Timeline for Approval

  1. Manually fax short sale package, wait for lender to upload documents (3-5 days)
  2. Lender assigns Single Point of Contact (5-7 days)
  3. Underwriters review file for completeness/collects documents and orders BPO (7-15 days)
    1. Note: This time frame is highly dependent on how quickly the buyer/seller can return requested documents to the lender
  4. Underwriter forwards complete file to Workout Agent with completed BPO
  5. Workout Agent reviews and responds to offer (30-45 days)
    1. Note: This time frame is highly dependent on how quickly the buyer/seller can return requested documents to the lender.
  6. After agreement on terms, Workout Agent submits for final approval to Investor (5-10 days)
  7. Investor issues approval to SLS. SLS issues approval letter (3-5 days)

Four Lender Specific Tips

  1. Workout agents review in the order received: Submit requested documents within 48 hours to keep the file at the top of the agent’s queue.
  2. Verify receipt of all documents: To avoid lost documents, call 48 hours after submissions to verify receipt.
  3. Wet Signatures: SLS requires wet signatures on every document. Cut down on document collection time by submitting wet- signed documents the first time.
  4. Don’t let documents expire: Keep all documents (listing agreement, PSA, Addendums, Pre-Approval letters etc.) continually updated. Expired documents will slow the process.

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. Must be in writing.
  2. Provide an independent appraisal, full CMA (Current Market Analysis) providing all characteristics with photos or BPO with photos.
  3. 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 less
  4. 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
  5. Time given to provide documents for value dispute: Varies
  6. Potential wait time for value dispute results: 30 days

Lender Escalation Procedure

SLS guidelines state that the Underwriter or Workout Agents must notate the file once every 5 business days. If more than five days have passed without movement on your file:

  1. Call your SPOC in the short sale department; and
  2. Request they email the Underwriter or Workout Agent with a request for status update.

Wait 48 hours, if no response:

  1. Call SPOC in the short sale department
  2. Request they Escalate file to Management.
  3. SPOC Management will reach out to Underwriters; Underwriters have 48 hours to respond

Wait 48 hours, if no response:

  1. Call SPOC in the short sale department
  2. Request to speak to a SPOC supervisor directly
    1. Note: The SPOC can transfer you to a supervisor if the supervisor has not responded within 48 hours. We cannot talk directly to Underwriter or Underwriters manager.Underwriter and Workout agent can call out, but SPOC cannot transfer calls to them.

Closing Process

  1. Send final HUD for approval: SLS reviews the HUD-1 Settlement Statement for final approval 48 hours prior to closing.
  2. Sign and Return Final Closing Materials: Upon approval, SLS 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.
  3. Send HUD and closing documents to: shortsales@sls.net
  4. Processing Tips:
    1. Include last name and loan number in the subject line of all email correspondence
    2. Include loan number on all pages of documents
    3. Call SLS with in 48hrs of submitting documents or short sale packages to verify receipt

Approval Extensions

To request an extension of an approval:

  1. Contact SPOC and request they email Workout Agent for extension
  2. State your request including the intended closing date
  3. Submit HUD with intended closing date
  4. Underwriter may request an addendum with intended closing date.
  5. Call and email to follow-up at least every 5 days. Can take 5-10 business days.