SUNTRUST SHORT SALE PROCESS 2013
As with many banks now, SunTrust has their own specific guidelines when it comes to doing short sales separate and apart from the actual investor guidelines. In my experience, SunTrust does take a bit longer than other servicers when it comes to getting short sales approved and this may in part be because they do not have a platform like equator that most of your major servicers and investors use to track and help expedite short sales. Generally, I am seeing it take 60 days for short sale approval on SunTrust short sales regardless of who the investor is on the loan.
As with any short sale, SunTrust does have to follow investor guidelines (meaning the investor who owns the loan) in addition to their own internal guideline process. SunTrust does require specific forms and addenda to the contract, which you can find an explanation of here: http://stmmktg.securebusinessweb.net/LossMit/ShortSale.pdf
Prior to starting a short sale with SunTrust it is important to determine who the investor is on your loan (so you’ll have an idea of the process and guidelines) and then download the short sale package from SunTrust and gather all the documents. The short sale process does not start until SunTrust has a complete short sale package; sending in an incomplete package can delay the process, so it is important to be diligent when putting it together. You will also have to list the property for sale to go through the short sale process with SunTrust.
SunTrust and the investor are going to determine if you qualify for a short sale based on if they find you have a hardship, which they will review all of your financial documents to make this decision. Note: there are exceptions to what they consider hardships, but overall they want to see some type of financial distress that can be proven.
SunTrust will open a short sale file and begin the process prior to having an offer and will assign a single point of contact for you and your realtor to deal with throughout the process. They may only keep it open for a short period of time if you do not have an offer on the property, but I have been able to keep them open for a good period of time without having an offer.
The process and timeline go as follows:
Submit a complete short sale package to SunTrust.
They will review, open up the short sale, and assign a single point of contact for your file.
They will review all the documents for completeness and determine if you qualify for a short sale based
on the investor’s guidelines.
They will order a valuation of the property, and compare that to the current offer if you have one.
If the offer is sufficient, and they feel your qualify for a short sale, they will submit the package to the
investor for approval.
If the investor agrees with what is submitted they issue approval and you move towards closing.
This is just a brief over view and we will go in to detail on the Suntrust short sale package in the next post. As always any question contact me anytime for help!