Mr. Cooper Short Sale Process
Considering a short sale and have Mr. Cooper as your loan servicer? Mr. Cooper has been buying up defaulted loans left and right, and currently has a pretty strong loss mitigation team in place to handle their short sales. Mr. Cooper holds a lot of government backed loans - FHA and VA, as well as Fannie Mae and Freddie Mac backed loans, which all have specific guidelines as to how their short sales are processed. Mr. Cooper short sales are all currently being processed in Equator - an online platform where Realtors can communicate with the lender to complete the short sale.
What to expect from your short sale with Mr. Cooper:
Short Sale Timelines with Mr. Cooper
While I generally tell my sellers they can expect 4-5 months from he day they list their short sale home to the day they close on it, this usually includes about a 2 month period for the short sale approval process. Currently, Mr. Cooper short sales are moving even faster. Mr. Cooper has been proactively processing short sales, even before a buyer is involved, leading to a slightly quicker approval process overall, once the buyer is actually in contract.
Short Sale Documentation Requirements
Unless you qualify for a streamline short sale (see below), you will still need to gather all required documents, and your agent will upload these into Equator on your behalf, as well as enter the info into the online system.
Streamline Short Sales with Fannie Mae and Freddie Mac
If your loan is conventional and backed by Fannie Mae or Freddie Mac; and this is a sale of your primary residence, and you are 90 days+ behind with a credit score below 620, you will qualify for the streamline short sale program. This eliminates all the financial document requirements and greatly speeds and simplifies the short sale approval process.
FHA Loans with Mr. Cooper are Still Being Processed with COVID 19 Streamline Guidelines.
FHA has been and is continuing to offer short sellers a simplified short sale program, which was recently extended through February 2026. If you have an FHA loan, there's never been a better time to short sell with ease, and this applies to all Mr. Cooper serviced FHA loans!
Mr. Cooper Short Sales are currently as easy as short sales can get.
Reid Real Estate Group has been specializing in helping sellers short sell in CT and FL since 2008! We've helped hundreds of homeowners move on from their over-mortgaged homes and on with their lives debt free, and we can help you!
Minna has been a fantastic partner in selling our home. She was patient with us in explaining the differences between a short sale and conventional sale and helped us think through the pros and cons of each. During the process of the sale she was strategic and got us the best price for our sale. The process was painless and quick and every step of the way she managed each and every detail flawlessly.
D.L.
Last Updated on April 16, 2025 by Minna Reid