Can the words "success" and "short sales" exist in the same sentence? YES! Short sales are everywhere and they're not going anywhere fast (no pun intended). Here are 7 keys to help you create success with short sales.
1. Qualify the Seller: Make certain that you understand where your Seller is in the process? Has a Notice of Election and Demand (NED) been filed? Is there a foreclosure sale date? Is your Seller willing to cooperate in the process? Are they in bankruptcy? The answers to all of these questions can be helpful in determining if you are able to help the Seller or not. Make sure there is enough time to process the short sale request. On average, it is taking approximately 3-4 months for most short sales to reach approval.
2. Manage the Listing. Protect your commission, prearrange price reductions with your Seller, and use the Short Sale Addendum. Do not provide tax or legal advice to your client. You should refer them to tax and legal experts to handle that, stay the Realtor®!
3. Qualify the Buyer. Are they willing to wait? Do they have the funds? Make sure the Buyer and their Realtor® understand the timeline and that this transaction could potentially take months to close. Also, the lender will request proof of funds or an approval letter from a qualified lender stating that the Buyer’s have been approved for the loan.
4. Assemble the Short Sale package quickly. Time is of the essence when dealing with Short Sales. It is imperative that you compile a complete Short Sale Package quickly and it must include all pages of all documents.
5. Submit an impeccable Short Sale Package to the lender. Lenders do give priority to legible, complete files from a known source. Make it easy for the processor.
6. Be patient and persistent. This is probably the most difficult for Realtors®. Short sales have created a whole different way of doing business. The lender(s) are and the investors that own the loan are in control. Patience is essential. You need to take the approach of persistent patience. This can be a challenge because the process can be illogical at times. Keep in mind though, if you aren’t friendly it could impact whether or not the lender continues to review your file - they can dismiss it at any time for any reason, including you being derogatory.
7. Keep your pipeline full. Consider utilizing a third-party short sale facilitation company. Choose wisely and utilize one that helps you with the administrative facilitation of the short sale process versus one that puts the property in a land trust or becomes part of the transaction in this manner. Short sales can take an inordinate amount of time and take you away from growing your business as a whole. Using a knowledgeable company that understands the process and can keep you updated all along the way can be an invaluable asset and allow you to focus on building your business.
By keeping these tips in mind as you navigate through the short sale process, you can create success in your business while helping people who are in a very difficult financial situation.
Guest Author Tara Rogers is the President and CEO of RealtyTMS®, Inc. which provides Listing, Transaction and Short Sale management services to Realtors®. You can reach her online at www.realtytms.com or via email at info@realtytms.com.
Learn more by taking the "7 Keys to Short Sale Success" course online - click here for information and course details --> 7 Keys to Short Sale Success
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