Master the Short Sale Transaction: Post 5 / After the Listing Appointment What Should I Do Next? If you have been reading my previous posts on mastering the short sale transaction, you are probably well-equipped to take a short sale listing. Post 4 reviewed what should be collected at the listing appointment.
Post 5 will cover what to do next. Now that you have left the listing appointment, you will need to take all of the traditional steps to get your listing on the MLS, your sign on the property, and begin your traditional advertising campaign.
At the same time, you will need to order a preliminary title report, if you have not already done do. This report will confirm the number of liens currently filed against the property. All of these liens need to be cleared prior to close of escrow. Additionally, you will want to check the foreclosure status on the title report. Be familiar and mindful of these dates because these are your deadlines. For example, if a Notice of Default has been recorded in the state of California, this would mean that the property will probably go to auction about 4 months after the Notice of Default was filed. It is vital that you are aware of these dates up front and that you confirm them with the seller's lender and the title company.
Second, you will want your seller to fill out a Statement of Information that the settlement company can then use to determine if there are any additional liens against the seller. For example, if the seller owed a few thousand dollars on an unpaid credit card, this may come up on the information search. Items such as these will need to be cleared prior to closing the short sale transaction. This may mean that the seller will have to pay off some unpaid debts. So, being aware of these debts and discussing them with the seller will give everyone involved in the short sale a clearer picture of the transaction.
Third, you will want to send your authorization to the lenders involved in the short sale. This will allow you to discuss any matters regarding the short sale with your seller's lending institutions.
There are many details involved in the short sale transaction. It is important to pay attention to these details as any minor hiccup may cause problems. Don't want to negotiate the short sale yourself? Please feel free to contact my office.
Also, stay tuned for post 6 which will review the next steps in this wonderful and challenging process!
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