Short Sale Tip of The Week 7-15-09

Posted on 15. Jul, 2009 by ctlms in Short Sale, foreclosure

At what point do I consult with a short sale professional?

You just got a call from a past client.  They are months behind on their payments and foreclosure is imminent.  Do you go it alone and figure out for yourself what price to list it at, if and when to lower it, what to disclose to buyer's agents, what paperwork to start gathering, etc, etc, etc.  OR, do you call your LOCAL short sale professional and ask those questions before you make a potential misstep that could derail your path to a commission?

You call the pro right away.  Part of a professional short sale negotiators job is to help the real estate agent set all the proper expectations right from the beginning.  Along with set the transaction up from the start so that it has the highest possibility of ending in a successful transaction for the sellers, buyers and of course the real estate agents.

Just like in all real estate transaction, every short sale transaction is different.  The pitfalls to watch out and plan for are different for each deal.  Certain facts have to be determined at the beginning to set the proper expectations with the sellers and the eventual buyers and their agent.  These facts include, the number of mortgages and or liens on the proper, the lenders involved, is the house in foreclosure and is there a date set yet, have the sellers declared bankruptcy or are they considering it.  These are just a few of the questions that need to be answered early on.  Just a few minutes on the phone with your negotiator can set your listing on as smooth a path as possible.

Some sellers will be unsure if they want to do a short sale and what it may mean for them.  Another common request is for me to speak with the sellers to answer their questions and explain the process to them.  I have even meet with the agent and the sellers so we can all discuss the options and how to best proceed.

At a minimum, if you have a short sale listing and you receive and offer, this is the latest point at which it is important to contact your chosen negotiator.  If you have waited this long, the negotiator may already be in a more difficult negotiating position than they would like to be.  But either way, before the sellers sign an offer, have your negotiator review it to be sure that the required short sale specific issues have been addressed in the offer.  Issues such as the offer being AS-IS, subject to short sale approval, when the buyers will inspect the property and mortgage contingency and closing dates.

Some of these term, if not addressed properly from the start can delay the process due to changes required by the lender.  We all know that one of the big killers of short sale deals is the time it takes to get an approval.  Anything that can be done to avoid delays will go to minimizing the time involved.

Bottom line is there is absolutely no reason not to call your local short sale professional right from the start, before the listing appointment.  If you know who the lenders are, we may even have the lenders specific short sale documentation on file to forward for your use at your very first face to face appointment with the sellers.

That’s a rap for this week.  See you all here next week for my next Short Sale Tip of The Week.

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