Short Sale Information
If you are having difficulty making mortgage payments due to a hardship, don't worry.  There are options available even if the home's value is less than the mortgage amount owed.
Matt Melull has closed hundreds of real estate transactions involving mortgage foreclosures.  These situations often begin with an unexpected hardship that impacts a homeowner's ability to repay their mortgage.  Our team understands the financial and emotional stress caused by this difficult period and we are here to help guide you through the options available.
  • Our team specializes in situations involving distressed properties.  We have closed hundreds of REO and short sale transactions.

  • No attorney fees or brokerage commissions.  These closing costs are included in the short sale.

  • Professional marketing.  Your home will receive the same level of attention as our other listings, including professionally edited photos, brochures, and postcards.


 Please feel free to contact us with any questions or concerns.


Matt Melull
Real Estate Broker
Coldwell Banker Residential Brokerage
530 N Hough St, #180, Barrington, IL 60010
Cell: 847-354-2565
Fax: 781-996-6987



View an example short sale approval letter below: 
January 21, 2017
Loan #:
Property address:

The bank approves the sale of the above referenced property that will result in a short payoff of the mortgage.

Possible Income Tax Considerations: The difference between the remaining amount of principal you owe and the current market value of the property must be reported to the internal revenue service (IRS) on Form 1099-C as debt forgiveness.  We suggest that you contact the IRS ( or your tax preparer to determine if you may have any tax liability.

Possible Credit Considerations: The short sale will be reporting to the credit reporting agencies as “Account legally paid in full for less than the full balance”. For more information on credit, please visit the Federal Trade Commission at

Bank approval is contingent upon the following:

1. The closing must occur on or before March 3, 2016

2. Prior to releasing any funds to subordinate mortgage/lien holder(s) the servicer through its agent must obtain written commitment from the subordinate lien holder that it will release the borrower from all claims and liability relating to the subordinate lien in exchange for receiving the agreed upon payoff amount.

3. The approved buyer(s) is/are:

4. The approved Gross Sales price is $125,000

5. Allowable closing costs are limited to the following:
         a. Commissions                                                                  $7,500.00
         b. Total Other Closing Costs                                            $8,649.20
         c. Negotiated Subordinate Lien Release (if applicable)       $0.00
         d. Seller’s Concessions (if applicable)                                    $0.00
         e. Extension Fee (if applicable)                                               $0.00

6. The seller(s) must not receive any proceeds from the short sale transaction, unless otherwise approved by the bank as advised in section 5 of allowable closing costs.
         a. Any proceeds from impound will be applied to the deficiency.

7. The total Seller’s Cash Contribution required at closing is $0.00

8. In addition to the Cash Contribution at closing (as stated in section 7), the seller is also required to executed a promissory note in the amount of $0.00.  A promissory note will not need to be executed at the time of closing if the amount required is $0.00.

9. Net proceeds must meet or exceed $99,850.80 includes any Seller’s Cash Contribution at the time of closing.

10. The short sale transaction must be an “Arms Length” transaction, and the attached Arms Length Affidavit (if provided) must be signed at closing and returned.

11. All Settlement Statements must be submitted for final approval at least 3 days prior to closing.

12. If the approved terms above change in any way, are delayed, or cancelled please notify [Bank] immediately.  Any changes needed within 10 business days of the closing date may not be eligible for approval or may delay the final closing date.
    a. The bank reserves the right to charge a per diem for any delays.

13. The foreclosure process will/may continue during the short sale transaction.   Please be advised that if a foreclosure sale is pending, the foreclosure date will not be postponed to allow this short sale closing.

14. All short sales of loans that have mortgage insurance coverage are subject to mortgage insurer approval.

15. All funds from the sale must be wired to:
16. The ARMS Length Affidavit (if required), wire confirmation, final settlement statement, and this seller signed approval letter must received the same business day of closing.  Any delays in receiving these documents may result in the return of the wire and cancellation of this approval.