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The loan servicer may send the borrower a Short Sale Agreement (SSA) to begin the process, or to determine list price. The SSA will identify the minimum bid acceptable to the lender, requires the property to be listed with a licensed real estate broker, requires the transaction to be "arms length" and the buyer may not resale the property within 90 days of closing. After signing the SSA, the servicer may not increase the minimum net amount acceptable.
Within three business days following the receipt of an executed purchase agreement, the borrower or broker must deliver a completed Request of a Short Sale (RASS). Within ten days of receipt of the RASS, the servicer must indicate its approval or disapproval of the proposed sale.
Many are optimistic that these and similar guidelines will eliminate much of the uncertainty and duration of short sale transactions.
You can read the HAFA Supplemental Directive 09-09 and see the SSA and RASS forms at http://foreclosure-aid.com/HAFA_Guidelines.pdf.
Patrick