Here are the basics steps to follow for a successful short sale:
Try to find a Realtor experienced in short sales. There isn't a basic training course for short sales so look for someone with experience.
1. Most banks are requiring your property be listed for at least 60 to 90 days before they will consider a short sale. It is important that the property goes on the MLS as quickly as possible.
2. Send your bank(s) a signed authorization allowing your Realtor to speak with them regarding your account.
3. It is vital to help your Realtor get a contract on your property. The short sale can not proceed without it.
4. Get a contract.
5. Submit the contract to your bank to you can begin negotiations.
6. Have your lender's short sale package sent to you. This is a list of items they want and paperwork they want completed (pay check stubs, financial info, hardship letter, etc.). This is the time to open about your financial situation. You are, after all, trying to convince a banker to take less money for your property than you currently owe.
7. Review this information with your Realtor and send it in to the lender - if any information is missing make sure you explain why in writing. The package needs to be as complete as possible. A hand written note briefly stating your poor current financial condition is a addition to the package.
8. Call your lender and make sure you know where to send the package; you will want a fax number or address for the Loss Mitigation or Short Sale Department. A note of caution, often banks use different names for departments handling this type of problem. Loss Mitigation is generally used but not always.
9. If you need to fax, do so and call to confirm receipt. If you need to mail make sure you send via overnight mail and track the package and have someone sign for the package.
10. Call your lender to find out who the loss mitigation representative is for your file.
11 If the submitted package is complete the lender will order a Brokers Price Opinion (BPO). This is the key that will unlock the process and allow it to go forward. If that opinion is too high the lender will not accept a low offer. Your Realtor must meet with the agent doing the BPO and offer supporting information why the low offer should be accepted for the amount indicated. Lenders will frequently accept an offer 10% lower than the BPO
12. Call about once a week to check on the file unless they give you a specific date to call.
13. The BPO will determine what value the bank will give your property, at that point they will either accept or deny your short sale.
14. If the short sale is accepted, a date for a closing is arranged and you will go to a title company and close the property at which point ownership transfers.
This is as simple as we could make this list while still including everything that is required for a short sale.
There are many things that have to happen correctly in order for a short sale to be accepted. Follow our advice and find a Realtor experienced with this process.
Ray Caran has owned and operated a multitude of businesses over the years. He has been selling over the Internet since 1997.
To subscribe to his free opt-in email go to: Affiliate Program Secrets and you will never miss an exciting issue.
Ray Caran has owned and operated a multitude of businesses over the years. He has been selling over the Internet since 1997. For more real estate tips go to: Property Money Making Secrets.
To subscribe to his free opt-in email go to: Property Money Making Secrets and you will never miss an exciting issue.
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