Short sale! This is where the bank forgives a portion on the loan in for a lump sum payment from the sale of a house. Over the last 6 months I have seen the short sale get easier as banks and REO company's are getting loaded down with the amount of  defaults.  I have been able to get rid of all other types of other liens along with the home loan including lawyer fee's. It seems everyone is understanding the problem and moving faster to cut their losses. I have been able to get banks to take as little as 10% on what is owed to them. I have given a brief outline of my process in the steps below.

1. Order and fill out the banks short sale packet right away. Do not wait until you have an offer.

2. Contact the banks asset manager for that home right away and let them know you are going to get them as much money as possible but due to the market it will probably be short. If their is a first and second contact them both. You usually just need to negotiate with the second if their are two liens but if the house value is worth under the first as well this is OK. You will need to negotiate with them both equally.

 3. Advertise your situation. Add the wording pre-forclosure and /or short sale to  all of your advertising including directionals and yard signs. This will spark more interest and more chances at higher offers.

4.  Price the property at what is owed for 1 week then lower the price every 2 weeks until you are in a range you know will get offers or you get an offer. You will be able to use the MLS history as proof you tried to market the property at higher prices.

5.  The closer you are to the sheriff sale date the more aggressive you should drop the price. I usually drop $10-$20k every two weeks until an offer comes in, and it always does.

6 All of the seller financials should be already turned in however the  REO company or bank  will want new bank statements and pay stubs if it has been 3 months so turn them in before they have to ask. Turn in the following with your offer.

A. Your own CMA

B. A letter in your own words explaining the current area market condition.

C. The listing history from the MLS proving you tried to get more out of the property.

D. Current bank statements and pay stubs go three months back to cover you bases.

E. A letter from the seller detailing the severity of their current financial crisis.

F. You own photos and description of the property including any problems that prevented any sales at a higher price. ( Do not try and beat up the property but explain any showings or past offers that may have been retracted by poor conditions or needed repairs) The key here is to let the asset manager know that you are trying to get as much money as possible for the property. 

7. Remove the lockbox to prevent any other Realtor from doing a BPO without you input. When the REO company sends out the Realtor to do the BPO meet them at the property and provide your own comps. to them to make sure your values match up .   

 8.  Now you just have to work it out with the asset manager. If you have done the previous steps correctly you should be able to get the asset manager to guide you to a deal that works for everyone. The offers have to close to actual value if you expect to close. They can still be a great deal for the seller but  need to be realistic. Reject ridicules offers right away and turn them in to the asset manager. It's going to be up to you to figure out what is aggressive vs ridicules but can make all the difference in how the asset manager works with you. 

If you need Short sale  help in Lane county Oregon or just have questions please call Justin Thayer @ 541-543-7287

For additional information on short sales go to www.teamthayer.com