By now, many of you have gained some experience with a ‘short sale' transaction.  Some of you will still be licking your wounds, and some will have had some level of success.  It seems that it is the lender that ultimately determines the level of time and effort that is required to close.   Whether you represent the Buyer or the Seller, you have probably been asking yourselves how they can possibly call these ‘short sales'?

 For those of you that wish to continue to pursue these transactions, I would like to offer a few thoughts that may make your job just a bit easier.  First, whether representing the Buyer or Seller, set the expectation of time early to avoid frustration when the deal is just about to gain approval.  It is my observation that most buyers withdraw their offer within 2 weeks prior to acceptance.  Set the expectation of at least 90-120 days from 1^st offer to close.  If you buyer has a definite time line, PLEASE, do not show them short sales.  Having the luxury of time will allow your clients to purchase well below market.  My wife put it best when she said, "When you buy clothes you have two options.  You can shop at Neiman Marcus, where everything is laid out nicely, they have a great selection and you pay full price.  You can also find the same item at a lesser price at TJMaxx.   The difference here is that you have to be patient and work to find the deals, and in the end you might have to fight for it!"  The same can be applied to purchasing a home.

 When inquiring about a short sale, ask the selling agent at what point in the negotiation process the property is in.  Is this an approved sale?  Have they submitted offers?  Have they reached a negotiator? Has there been an appraisal on the property?  The answer should give you a much better idea of timing.  This will allow you to strategize with your client.  Many sales are approved and waiting for buyers, as the previous buyers had withdrawn just before acceptance.  This is the time to pounce!

 On the selling side, make sure you have confirmed all the documents that the particular lender requires.  Mark every page with the loan number at the top right hand corner, as they have a habit of loosing paperwork, and this makes it easy to identify if dropped or mixed in with other deals.  Make sure that you follow up 72 hours after submitting your short sale package, no earlier.  Just because the fax machine says they got it, doesn't mean that they received it.  Typically, there are separate numbers for authorization and loss mitigation.  Make sure that you have confirmed those.  Document all faxes including the dates as this will aid in recalling account details. 

 One overlooked detail is the way in which you treat the people on the other end of the phone.  You are hired to take the emotion OUT of the transaction.  Treat the bank representatives politely, and I guarantee a much better result.  Let them know that you appreciate their time and that you understand they have a difficult workload, even if this is contrary to what you believe.  Be confident in your process.  Once you have your sale on the way, check back on a weekly basis and request a simple status update.  Do not call the bank incessantly, as this is a sure way to find your deal on the bottom of the pile.