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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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As always Visit the Ask The Expert Page to leave your questions or contact me directly if you need immediate assistance at sean@ctlms.com or visit www.CTLMS.com
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Bio
Sean Wilder started in the pre-foreclosure business in 2007. Previously he enjoyed successbusiness in the transportation industry, real estate investing and as a licensed Realtor. Sean brought the same determination and work ethic that lead to great success in his previous businesses to Loss Mit Services based in East Windsor, CT. His focus, combined with his drive to succeed, have been essential to his success as one of the area's top short sale negotiators.
Known for finding creative ways to overcome hurdles and never ending persistence; Sean, believes in the power of team. Sean and his team are in the trenches everyday, plowing through challenges and objections while negotiating with various lenders, and finding solutions to difficult problems. It is this daily experience that brings Loss Mit Services consistent success and provides them the knowledge to share.
Sean belongs to a number of industry groups and associations that allow him to collaborate, share, learn, teach and stay updated on the latest changes in the pre-foreclosure industry at the federal, state, local and lender specific levels.
Effective Oct 1, 2009 all debt negotiation companies that offer loan modification, short sale, or foreclosure rescue services needed to be licensed by the CT Dept of Banking. Sean and his company Loss Mit Services were the 1st to be awarded the Debt Negotiation License NMLS # 828273 which can be verified at the CT Dept of Banking Website by Clicking Here. In addition, effective Oct 1, 2011 Debt Negotiators were required to also be licensed Mortgage Loan originators and Sean also has received this license, NMLS# LO-831853.
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