1 / 18

Short Sales: The Top 10 Issues

Lynn Madison's guide outlines the top ten critical issues in short sales, offering real estate professionals essential strategies for navigating seller qualifications, understanding deficiencies, and preventing fraud. This resource emphasizes the importance of proper pricing, early seller engagement, and effective communication with lenders and clients. Notably, it details how to negotiate the best contracts and highlights lender collaboration, countering common misconceptions. Gain valuable insights and equip yourself with the knowledge to handle short sales efficiently and ethically.

odele
Télécharger la présentation

Short Sales: The Top 10 Issues

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Short Sales: The Top 10 Issues Presented by: Lynn Madison ABR, ABRM, BPOR, GRI, SFR, SRES

  2. Issue 1: Pre-Qualify the Sellers • Are they eligible? • They must have a financial hardship • Monthly shortfall • Are they willing to cooperate? • Do you have enough time? • Do a lien search

  3. Issue 2: Deficiencies • Are you in a recourse state? • Understand how deficiencies work • Understand federal tax ramifications • Cannot just ‘walk away’

  4. Issue 3: Get Seller Started Early • Authorization to lender • Authorization to disclose short sale in MLS • Fannie/Freddie 710 Form

  5. Issue 4: Be Aware of Fraud • Assignment of contract • Giving power-of-attorney • Intentional damage of property • Creating ‘waste’ • Sellers getting cash from buyers • Short sale ‘flops’

  6. Issue 5: Price it Right • Price at low end of market value • Do not price based on what they owe • Do a CMA with a BPO attitude • Do not underprice • Schedule reductions

  7. Issue 5a: Promote it Properly • MLS – disclose it is a short sale • Say it’s HAFA approved if it is • Do not say ‘as is’ • In agent remarks put – Only one accepted contract will be submitted to the lender • Market it like a normal listing

  8. Issue 6: Prepare the Buyer • Time frames • Elements of a good contract • Must have a reasonable chance of closing • Multiple offers? Can they buy both? • Mortgage approval – proof of funds if cash

  9. Issue 7: Negotiate Best Contract • Price • Earnest Money • Home Inspection • Mortgage Application • Attorney Approval • Ask the right questions • of the listing agent: • Is the short sale • package read for • submission? • What is the seller’s • hardship? • Has the foreclosure • sale been scheduled? • Do you have other • offers?

  10. Issue 8: Submission • Complete short sale package • Lender calls the shots on what and how • Really - it may be the investor not the servicer so don’t assume because BofA or Wells asked for it one way last time that they will this time! • All at one time – not piecemeal

  11. Issue 9: Lender is NOT the Enemy • We are partners • This is not adversarial • Treat them with respect • They DO track you on former transactions • Average large lender negotiator is handling 150 – 175 transactions at a time

  12. Issue 10: Communication • Broker to broker • Broker to lender • Broker to clients • Client to broker • This is the new ‘norm’ • Remember the book • Who Moved My Cheese? • They didn’t move our cheese – somebody ate it! • Do them right – or don’t do them at all

More Related