Short Sale Telephone: 855-223-4680 | Short Sale Fax: 877-589-0758
Required for Initiation
To initiate the process, fax:
- Buyer Pre-Approval/Buyer Proof of Funds
- Borrower financial information (see Doc Pac)
- Listing Agreement
- 4506T Form
- Hardship Letter
- Third Party-Authorization
SunTrust negotiates with three structure phases: Processing, Negotiation and Closing. The lender quotes 45-60 days as the timeline for short sale approval. This is highly dependent on how quickly the parties return documents.
Home Preservation Client Representative: SunTrust assigns an HPCR to assist and update through the process. They communicate on behalf of the Processors, Negotiators and Closers.
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 approval at the close of the transaction
Timeline for Approval
- Manually fax short sale package, wait for the documents to be received and uploaded (5-7 days)
- Note: Call after 48 hours to ensure the documents have been received
- SunTrust assigns a Home Preservation Client Representative (3-5 days)
- HPCR refers to Processor (3-5 days)
- Note: Call regularly to push forward
- Processor orders BPO and completes file (5-20 days)
- Note: All communication comes from the HPCR
- Negotiator reviews and responds to offer (5-10 days)
- Note: Request direct contact information for your negotiator
- Negotiator submits offer for approval to investor (5-7 days)
- Investor reviews and issues approval (5-7 days)
Lender Specific Documents
Four Lender Specific Tips
- Expedite the Process: Provide the HPCR revisions and additional documents as soon as possible in order to keep the file moving forward. A quick response- time will keep your file at the top of your HPCR’s list.
- Wet Signatures: Suntrust does not require wet signatures on every document; however, some investors do. Submit documents with wet signatures to avoid delays.
- 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.
- Communicate directly through your assigned HPCR: Your HPCR has full access to all file notes. Communicate directly with them.
SunTrust and Mortgage Insurance
In some cases, Private Mortgage Insurance companies require mortgagors to contribute to offset the difference between the net proceeds from the sale, and the total amount due. SunTrust communicates this information when they respond to the offer.
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.
- Send final HUD for approval: SunTrust reviews for final approval of the HUD-1 Settlement Statement 48 hours prior to closing.
- Sign and Return Final Closing Materials: SunTrust issues closing instructions and requests for signatures on the short sale approval letter, as well as other documents:
- E.g. Short Sale Arms Length Affidavit, HAFA Affidavit, Unearned Insurance, etc.