Why it is Important to Understand the Short Sale Process
It is of much importance to have a comprehensive understanding on the short sale process. So if you are an investor, listing agent, homeowner, or the buyer’s agent, make sure you are knowledgeable in every detail of the process, this ensures the transaction is well facilitated. Always make it a point that you are able to explain the process precisely to the homeowner and buyer. It is one of your duties to keep them updated regularly.
If you are a listing agent, you are definitely working in the best interest of your client—the seller. At some point, you may have to do some training, coaching, and negotiating with the buyer and the buyer’s agents.
Although as a Gainesville Short Sale Agent it is not my responsibility to coach and train the buyer’s agents and their buyers about the short sale process, however I do it to keep the buyer’s agent and buyer engaged. I am working for my client’s best interest since their ultimate goal is to get their home sold as a successful short sale and keep the buyer in the deal. Most of the buyer’s agents I speak with are ill informed of how the short sale process truly works. Many of them believe the short sale can be processed in 30 days. Are you kidding? Most short sale banks are not set up to process short sales in 30 days. Bank of America touts they have the ability to do so, however, they do not have it down yet. A realistic time frame is 90 to 120 days from the date of offer to short sale approval.
It is even more important that as a short sale agent you are not handling all files completely on your own. You will not stay in business. You should have a team of professionals to assist the sellers and buyers through the process. This includes trusted, reliable and experienced Real Estate and Tax Attorneys, CPAs and Title Companies.
Laws, rules, regulations and processes are constantly changing as well as the available homeowner assistance programs.
An essential part of a partnered company is its integrity. It is important that you consult a company that has established its reputation on closing short sales and have a proven record of success. When you do business with such company you will be at ease that the documents are completed correctly and submitted timely otherwise your short sale will not close.
If you live in a state where attorneys do all of the closings, then make sure you are working with an attorney that is an expert in handling short sales, do not take chances. If you happen to know an attorney who is competent in foreclosure defense, he would be great to work with. Another attorney you may need as a part of your professional team is a bankruptcy attorney.
Bringing together a team of professionals signifies you only want to work with the best to provide an outstanding service to help you as a homeowner.
The following steps in the short sale process will be further elaborated:
– Vetting the homeowners for the short sale
– Gathering the documents from the homeowner for the short sale package
– Putting the short sale package together
– Pricing the property correctly
– Listing the property, strategy for success
– Accepting offers on the property
– Sending the authorization letter
– Sending the package to the lender
– Receipt of package by the lender
– An authorization letter from the homeowners to give you permission to go around the servicer and go to their note owner
– Lender orders the BPO and/or an appraisal
– If offers are in line with ratios on BPO or appraisal, lender sends package to note holder/ investor
– Note holder approves package with conditions
– Lender sends package to MI or PMI for approval if applicable
– Short sale lender sends acceptance letter to listing office or title company
– Title company gets ready for closing
Below is a testimonial from one of my happy and satisfied clients.
It has been an absolute honor working with Stephanie Anson.
Stephanie is professional, prompt, and truly has the heart of a teacher. We knew nothing about the short sale process. In fact, because of our previous home buying experience, we were pretty skeptical we would meet a realtor we could rely on and trust.
From the first time she came to our home, Stephanie was able to put us at ease. Before we agreed to work with her, Stephanie offered to hold a free workshop simply to explain the short sale process. She was incredibly patient and answered all of our questions (over and over again). She was able to connect her knowledge of the industry with her own personal experience and the experiences of past clients.
She gave us incredible counsel when it came to showing our home. When we saw the listing live on the Internet we were amazed at how gorgeous it looked. Several potential buyers thought it was awesome too because we got an offer less than five days after viewing. Throughout the process we were kept in the loop and always knew the best case and worse case scenarios. We were prepared for anything.
There was no doubt that Stephanie always had our best interest in mind. We are so thankful to her because she has helped us get from under the burden of this upside down mortgage. The job she did for us literally changes our life for the better.
–Val and Paul Brown