When you take a listing that may be a short sale, the first thing you need to do is get a letter of authorization from the seller. This letter should include the name of the lender, the account number of the loan, and the signature of the seller or sellers. This letter basically says that the lender as authorization to reveal any information regarding this loan to you as the sellers agent. Send that to the lender as soon as possible.
If there is more than one loan on the house, all lenders should be involved. Ask all lenders for a short sale, even if the first is unlikely to accept one.
Once the lender receives your letter, and inputs it into the system, you can determine how that bank works. By the way, expect to wait a few days from the time you fax the letter until you can actually get info from the lender.
Each bank works a little differently. In my experience, most banks do not want the "short sale package" until an offer is received. In the meantime, ask what they will need for the package. Most banks will need bank statements, tax returns, a letter of hardship (explaining why they can't pay their mortgage, or why they can't sell for enough to cover their loan), and recent pay stubs.
Be aware that if the sellers have any other liquid assets, lenders will probably not accept a short sale. That includes other homes, accounts, money, etc. But it's always worth asking.
Also, be aware that the lender is going to have a Brokers Price Opinion, done by another agent. Be sure to price at or just below market value. If you discount the price too much, the lander will likely not accept the short sale.
Treat this listing like you would any other as far as marketing is concerned. Market the heck out of that home! Stage it, make it easy to show, etc. Check with your MLS to see if disclosure is required in the MLS, or if disclosure can wait until you receive an offer. I personally disclose the need for a short sale in the agent remarks of the MLS.
Also, remember that short sales take a lot of time. You will spend massive amounts of unproductive hours sitting on the phone trying to find the right person to talk to. Always start by asking for the Loss Mitigation Department. they won't want to automatically put you through. It may take two or three calls to finally give enough info so they will put you through to Loss Mitigation.
They are not easy listings, but it is a segment of the listing market that requires attention. I personally think that these listings will increase over the next year as more people that bought at the top of the market need to move and sell. Good luck!
Comments(3)