Quick Approvals On A Short Sale!
Approval delays are caused by three problems! #1 A bad short sale package! (see Secret #3) This is the biggest problem. Also don't send ANYTHING to the lender until you have EVERYTHING! If you trickle things in it slows down the process. Every time something is missing it can add a week or two to the approval.
#2 Price. Lenders will accept between 93-85% of the REAL VALUE. Lenders aren't stupid and you can't steal the property. Only submit REAL offers at acceptable prices. If the offer comes in low, counter it! This shows the lender that you have their interest at heart. Even if the offer is a good offer but not at full price counter the offer. If the buyer won't come up in price you can tell them you will you will submit the lower price but the lender can you tried. This is important to getting the offer approved at the price you submitted.
#3 FAKE OFFERS. A lot of agents submit FAKE offers to see what the lender will take. You know the Real Value of the property (or you should if you have been in this business very long) so only submit offers that fit within the 93-85% range. Every lender could speed up their process if all of the fake offers were out of their systems. Plus it is not honest or morally right.
I have closed 120 short sales an get approvals like this: SLS-7 days, EMC- 9 days, ASC-12 days, Citi Mortgage 14-days, Wells Fargo-14 days, Homecommings-28 Days, Provident Funding-30days etc. etc. With the exception to WAMU/Chase & Countrywide/BofA none of my short sale approvals take more than 45 days, most less than 30 days.
Now here is the big surprise to most agent: ALL of the 120 were approved at the price I submitted them at!
How do I know this? I have closed over 120 short sales and you learn as you go. So remember the package is the key! Until the next secret.
Sherman Smith & Associates