In many markets across the United States, the term short sale is getting to be very well-known among agents, loan officers and banks. It can be the kiss of death with a sale, since it takes longer to do, usually. I am including some helpful hints for consumers and agents to help speed up the process. By the way, the reason many homes are going to auction is because consumers wait until the last moment to do the items below.
1. If your listing is going to be a short sale. Have the homeowner immediately send the permission and hardship letter to the bank so that the title company and agents can communicate with the bank directly.
2. Request the short sale packet from the lender immediately.
3. Try to get preliminary approval for a certain price on the home ahead of time. I realize that some lenders will not do that unless an offer is on the place, but it is always good to try.
4. Find out the policies on commission of the bank you are dealing with. I am currently doing a short sale on a property with a very well-known bank (you can e-mail me for the name of it) but they will not even respond to a short sale offer if the commission split is above 4%. Others will give 5 or 6% split. It varies bank to bank.
5. Stay on top of the details. Getting all the required forms turned in ASAP, will help reduce the amount of time it will take to get a response from the bank. With as many foreclosures out there today, it is taking longer to get approval.
I hope these hints come in handy, especially to the new agent.
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