Ok, most of you know I've been out of the office for the last three days, so I wanted to take this opportunity to share with you some great tips I got from a Chase representative at one of my classes.

In these times we find ourselves dealing with a growing number of short sale opportunities for our clients, and I know many of you have been frustrated with what seems to be the ever lengthening process.  So here are some tips on getting your offer into the bank and getting it accepted as fast as possible.

#1 - Make sure you're talking to the right people.  If you are not in communication with the "Home Owner Preservation Department" or the "Loss Mitigation Department" you are talking to the WRONG people.  This will not only slow down the process but you are running the risk of getting wrong information.

#2 - Know and Have a realistic value of the property.  The bank knows what the property is worth!  They are already in the position of taking a loss on this property and they are trying to save as much money as possible...that's right even in these economic times!  If you are not sending in a realistic offer this will lengthen the time you will get a response and you and your client run the risk of losing the property all together.  Typically if you are around 80% of the value or list price you will be in the "ball park".

#3 - Be Prepared!  Banks are asking agents to "share their pain" and take a cut on your commission.  You must evaluate whether you are able or want to do this.  I would say be prepared to do this if you client's really want this property.  Otherwise have this conversation with your buyer and talk to them about the Buyer Representation Agreement that you had them sign.

#4 - Many banks are working with Seller's to keep them in their homes.  If they can re-margin their loans to help sellers stay in their homes a lot of banks are taking that option.  Many banks estimate that it costs roughly 15% of the homes value to foreclose on a property. 

Always remember that the role of the Loss Mitigation Department at any Bank is to save and/or recoup as much money as possible for the bank.  By keeping these tips in mind hopefully you can serve your clients better and help them win in this ever changing market.

**What's the next trend in lending... 2 underwriting processes for everything over an 80% LTV.  If your clients are putting down anything less than 20% on a purchase they may have to go through an underwriting process with the mortgage company as well as an additional underwriting process with the mortgage insurance company.  This means FULL DOCS!!!  Start coaching your buyer clients now and helping them get their file together for this process.  Oh and one other thing, when this starts to happen not only will you want the loan approval letter for the seller but you will also need or want to ask for if you are the seller a Mortgage Insurance Certificate stating the buyer's have been through that underwriting process as well. 

The questions was asked if this will hold up or lengthen the average 30 day closing time we all frequently used and the answer was no....maybe...probably not.  The only foreseen complication is if the mortgage company has to go from MI company to MI company to get your buyer approved. 

Good luck...be prepared...and coach your clients...that's why they hired you!

Here's to your success!