Every lender is different and I am learning as I go.  I have been processing short sales for Realtors since December. I am a Broker for 9 years. I have over 20 files and these are some things I have learned so far:

• Put loan number on every single document you send.  I purchased a 10 Number Ink Stamp that I can use to stamp the loan number on everything.
• Always meet with the Realtor doing the BPO.  Provide them with Comps, show them needed repairs and estimates to do repairs, tell them as much detail about the property as you can.
• Send your Authorization seperately and also include one in the package.  Call and confirm receipt of the Authorization.  Some lenders have different fax numbers for both the short sale offer and the authorization. I had a file that I had to send the Authorization 11 times before they finally put it in the system, even while the short sale file was being processed, they couldn't talk to me until the Authorization was viewable by anyone who answered the phone.
• Request a Payoff statement for every loan before you send the package.
• Check for Delinquent taxes (Miami) at http://gisims2.miamidade.gov/myhome/propmap.asp and for Broward http://bcegov.co.broward.fl.us/revenue/nameform.asp. Those figures should be added to HUD-1.
• You can also check for liens (Miami) at http://www.miami-dadeclerk.com/public-records/default.asp
• You can check for code violations and open Permits at http://www.miami-dadeclerk.com/cef/default.asp
• Ask your negotiator for their email.  Much better response and updates via email.
• Countrywide needs the Borrower/Seller to call and give them their Personal financial statement via phone before they even look at the short sale file.
• BAC Florida Bank will not do a short sales on Rental Properties or Corporate Owned Properties.
• Countrywide has a New short sale support line. The number is 1-866-880-1232 and the fax to that department is 888-491-4947.
• Washington Mutual staff are very friendly, very helpful and are really trying to help the homeowners get the short sale approved.  The time frame is still long but at least they call you back and give you updates.
• HomeEq, also, very friendly and professional.  I got one approved right over the phone and the approval faxed the next day. 60 day processing time.
• GMAC is also very quick to respond initially but their turnaround time is very long 60-75 days minimum.  They order the BPO the day after they receive the offer, assign a negotiator right away and tell you exactly what they want on the HUD-1. They don't like to pay mititgation fees, processing fees, or even courier fees and the commission can't be more than 5%.
• Some lenders WILL negotiate with you; others will say TOO LOW, send a new offer (Litton).
• Be friendly! Always be friendly and professional no matter how frustrated you are. Smile while you're talking to any representative. It really helps.
• Take back-up offers. Send only one contract to bank but continue to accept back-up offers until it closes.

More Tips:

Updated 08/26/08

• Lenders don't care if it's a cash offer or subject to mortgage. It makes no diference to them. Yes it will close sooner but it doesn't matter. They are still being shorted.
• The hardship letter has to be as detailed as possible to induce sympathy. Make sure the borrower is honest about their situation, no matter how personal, ask for details. My husband left me for another woman, I lost my job, I had a car accident... etc., etc. . Give them lost of details. It is the most important element of a short sale in the lenders eyes; that and the BPO. You must also understand that your bank statements are reviewed to see the borrowers spending habits.  If the hardship letter is claiming extreme financial hardship but the bank statements show overspending, or shopping sprees, or bahama cruises then you will look like a liar and they will deny your short sale.
• If you're in Florida and the condominium association has placed a lien on the property for past due maintenance fees and attorney's fees, obtain the Claim of lien from County records or the Title company as soon as possible.  Send with Package. Add two to three more months of maintenance fees to the total figures on the HUD or else you will get an approval for the original amount on HUD and not the updated figure. 
• Add a follow-up sheet to each file. Each time you call write down who you spoke to and what time and the results. You should even put how long you have been on hold as well.
• Insist that the Buyer use the title company of Sellers choice. Due to the complexity of short sale transaction, it's best that both the seller and buyer use the same Title agent

Carmen