How To Make Your Short Sale Shorter

There are many aspects of the short sale process that are out of a short sale seller’s and short sale agent’s control. How long the short sale lender will take to process the file, whether there is more than one servicer on your loan, and whether there is mortgage insurance certainly impact timelines on short sale approval, and they cannot control be controlled. However, there are several factors that a short sale seller CAN control that will help a short sale stay short:

  • Have your financial documents ready. That means no “running start” to your listing. Have all the documents needed for your short sale in your short sale agent’s hands at the beginning of the process. If your short sale lender throws a loop and asks for an additional document, turn it around as quickly as possible.
  • Make the property easy to show. Tuesdays between 2pm – 4pm may be the most convenient time for you, but it may not be convenient for potential buyers. Most buyers want to see your home weekday evenings after work or during the day on the weekend. Make sure your home is available for them to see during those times with only a reasonable amount of notice.
  • Price the property to sell. Selling a short sale is not like selling a regular listing. A short sale is meant to be a quick sale. It should be priced so that an almost immediate reaction is received from the market. The fact that you paid twice the list price for the home should not factor into the list price. It should be priced according to the market, comps, buyer demand and should reflect that it is a short sale which requires the buyer to wait for lender approval.
  • Find the right buyer. Many short sale delays are caused by buyers walking away from the deal and the process. Make sure the buyer’s situation works for a short sale, if they need to move in 30 days, this may not be the right property for them. Get some commitment from them — require them to put their deposit in escrow and do their physical inspection and appraisal up front. Then, if the buyer’s inspections and appraisal are complete and their loan is fully approved, once short sale approval is obtained, a quick closing is a certainty.
  • Hire an experienced short sale agent. An experienced short sale agent can help you avoid common short sale pitfalls and errors. Having an experienced short sale agent handling your short sale negotiations can make all the difference in how smooth and quickly the process will go and I highly recommend it.

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home and would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *How To Make Your Short Sale Shorter*

 
Star Posted by Tni LeBlanc, JD, MA, REALTOR®, DRE #01871795 on 06/27/2012 04:07 PM   Comments (35)   Real Estate Tips in the ActiveRain Channel   how to make your short sale shorter  
Originally posted at: I Love the Central Coast!: How To Make Your Short Sale Shorter
Short URL: http://actvra.in/D5R
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35 Comments on How To Make Your Short Sale Shorter

20 Most Recent Comments Displayed Show All

JUN
27
360,586 Points 76 Featured Posts Outside Blog Called Shot Master

Anna - Thanks for the feature.  Very true making sure you have a committed buyer is essential.  And, you have to set reasonable expectations so the buyer remains realistic.

Thanks Tim!

Very true Gene.  There are more and more short sales.

Robert - BofA is getting better, I think.

Brenda - I know you will!

Barbara - I agree a great buyer's agent is a big plus on a short sale.
7:21pm • #16
360,586 Points 76 Featured Posts Outside Blog Called Shot Master

Joan - If that is true -- there is a lot of unchecked illegal activity going on.  In CA, attorneys and real estate agents can negotiate a short sale.

Mike - That's too bad.  There are too many bad stories out there and I think short sales have actually gotten a lot better!

Hi Ira - I've had a lot of success with short sales.  And not all of them are long and drawn out.

Very true Dave.  If you don't plan on being responsive to the bank request, you might want to look at other options than a short sale.
7:26pm • #17

Hi Tni,

These are great tips and advice! Thanks for sharing this information, I'm sure a lot of homeowners will find it very useful. Keep up the good work as a top Santa Maria short sale agent!
7:34pm • #18
592,014 Points 58 Featured Posts Outside Blog Called Shot Master

Hi Tni -- all great point for sellers who need to short sale.   As far as pricing -- and it's probably more of a listing agent issue than seller --- short sales that are priced unrealistically low may bring lots of enthusiasm but how realistic is this type of pricing with a short sale?  If the goal is to sell the property, price it realistically based on the factors at hand.  When I see a new listing pop up on our multiple listing hotsheet that is priced "too good to be true" -- typically it's being handled by an inexperienced or out-of-the-area listing agent --- when I make an offer on behalf of buyers my goal is for that sale to close.   
7:56pm • #19
165,214 Points 8 Featured Posts Outside Blog Called Shot Master
Great advice spoken from someone who knows! It is amazing to me how often folks don't want to heed such good advice but then still get frustrated if the results aren't impressive.
8:52pm • #20
193,478 Points 1 Featured Post Attended Rain Camp

Good one Tni. All great suggestions. I learned it from the onset, get the client ready right from the start, get the right buyer and buyer-agent, price it to sell and bring in a partner to process it (in my case a title company).
9:43pm • #21
JUN
28
1,069,376 Points 70 Featured Posts Outside Blog Called Shot Master

Being continually and vigilantally cooperative speeds the process.....and the listing agents should be well equipped with coaching both sides as to what is expected during the process.
2:35am • #22
798,431 Points 80 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Tni,great tips for a short sale buyer...the last tip is one of the most important- hiring an experienced short sale agent..many buyers work with agents who do not have a clue and do not prepare their clients well for what can be a long haul with 2nd loans & mortgage insurance on a loan.  Working with you as a Santa Maria short sale agent is key!  good share
3:05am • #23
651,528 Points 69 Featured Posts Outside Blog Attended Rain Camp

Hi Tni.  What do have against 2-4 on Tuesdays? :)  Great post especially having all the docs before putting in on the market.
3:21am • #24
556,752 Points 31 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Tni,

A short short sale.

After 6 years, it seems like we are getting closer to this ideal.

Phil
3:36am • #25
1,455,851 Points 46 Featured Posts Outside Blog Called Shot Master

These are good tips. Buyers looking to buy a short sale in your area should call you. You are an expert.
3:47am • #26
318,823 Points Outside Blog

T:    This is some good info for all,keep up the good work and good luck with your business in 2012,  E
4:05am • #27
360,586 Points 76 Featured Posts Outside Blog Called Shot Master

Hi Bas - Thanks.  I hope they will take the advice to heart.  Short sales can be shorter.

Hi Mike - I too see that same mistake.  Sometimes the agent is working with a very shortened time frame, however other times it is just flat out priced too low.  Short sale sellers are opinionated as well about the value of their property.  Often, they can't believe what the current value of their property is -- but they shouldn't let that hang them up -- they should listen to their experienced short sale agent.

Mark - So true.  Don't turn in your documents two weeks late and expect the short sale to sail through.  Sellers that are ready on day one get their approvals faster.  You can't always control it, but slow documents means it is definitely going to be a long process.

Richard - Sounds like a plan!

 
4:17am • #28
360,586 Points 76 Featured Posts Outside Blog Called Shot Master

Sally & David - Absolutely.  Well put.

Thanks Ginny. Yes, not having reasonable expectations can make the short sale painful and seemingly drawn out for everyone involved.  I remember a short sale that I predicted a 5 month approval due to the complexity of the file.  I informed the buyers agent at the outset.  After we accepted the offer the buyer 's agent called and said he didn't see why approval couldn't be obtained in two months and he told his client that as well.  Of course -- they canceled.  Nice.

Thanks Conrad!  Glad you liked the post.

Phil - We may get there one day and hopefully soon less of a need for short sales.

Hi Gita - Buying a short sale is challenging and having an experienced agent help you can be critical.

Thanks for stopping by Ed & Tracy!
4:24am • #29
620,899 Points 8 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Great list Tni, at the current state, this is almost like an oxymoron. 
10:54am • #30
25 Featured Posts Outside Blog

Thanks for these great tips Tni!  I used to hate doing short sales, but now I find that they aren't too bad if everyone involved knows what they are doing.
1:22pm • #31
JUN
29
360,586 Points 76 Featured Posts Outside Blog Called Shot Master

Eileen - LOL.  They are getting better out here.

Candy - Very true.  The key is working with experienced folks.  It makes it much easier.
7:13am • #32
JUL
01
942,700 Points 95 Featured Posts Outside Blog Attended Rain Camp

Your list is great. Of course, the key (and you allude to it here) is the cooperative seller. 
7:01am • #33
JUL
02
398,257 Points 5 Featured Posts Outside Blog Attended Rain Camp

Hi Tni, As always, a great post.  Did you ever think that maybe (just maybe) the lsting agent restricting the showing time (ex. Tuesday 2-4) was so that they might have a better chance of double ending the sale.  I firmly believe that to be the case from what I have seen.  Personally, I think lenders need to disallow double ending shortsales... Soon to be one of my topics.
12:37am • #34
NOV
07
513,201 Points 44 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

Another excellent post here ,Tni.Thanks for sharing this with us.Continue being the best Santa Maria Short Sale Agents.

 
3:34am • #35

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Tni LeBlanc, JD, MA, REALTOR®, DRE #01871795

Santa Maria, CA

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Mint Properties, Tni LeBlanc (805) 878-9879

Address: 2880 Santa Maria Way, Suite D8, Santa Maria, CA, 93455

Office Phone: (805) 938-9950

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