3 keys to a successful short sale

By
Real Estate Agent with Keller Williams Realty- North Shore

There are three primary rolls that need to be in place before presenting an offer to the bank.

        1.   A Realtor that has had short sale success. One that understands the process and knows what Banks/Investors are looking for in an offer.

       2.      A motivated seller that is willing to do what it takes to get the needed paperwork together and work with the Realtor to get an acceptable offer

       3.     An experienced short sale negotiator to keep the line of communication open with the bank during the seemingly endless time period between accepted offer and lender approval.

 

These are the only things you can control and if each one does their job, your chances of saving your credit and selling the property increase dramatically.

What paperwork will I need to provide?  Every bank has it's own way of putting a file together. Here is a checklist of the main things that will be needed.  As the transaction goes along they will want some of these updated. Responding quickly to the banks request for updates will cut down the time frame and keep the flow of the transaction moving.  

     *  2 Years Tax Returns
     *  2 Years W-2's 
     *  1 Months Recent Pay stubs
     *  2 Months Recent Checking & Savings Account Statements (all pages)
     *  401K/IRA Statement (all pages)
     *  Water/Sewer Bill
     *  Property Tax Bill
     *  Current Mortgage Statement(s)
     *  Homeowners Insurance
     *  Heating Bill
     *  Electric Bill
     *  Auto Payment(s)
     *  Auto Insurance
     *  All Credit Card Statements
     *  Cable Bill
     *  Home Phone Bill
     *  Internet Bill
     *  Cell Phone Bill
     *  Leases (if multi-family)
     *  Hardship Letter

Having as much of this as possible at the initial meeting will expedite the process as well.

 

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Rainmaker
321,658
William True
True Sarasota Real Estate - Sarasota, FL
Sarasota Real Estate

I have to agree with your three key points. Without any one of those factors, you're fighting an uphill battle.

Apr 03, 2010 12:17 AM #1
Rainer
43,288
John Armstrong
Coldwell Banker Heart of America - Bloomington-Normal, IL

I just wish some of the bigger lenders could streamline this a little bit. Maybe if there was a website that could post the status once in a while.

Apr 03, 2010 12:23 AM #2
Rainmaker
871,250
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

I have a couple of clients that need to do a short sale - thanks!

Apr 03, 2010 12:33 AM #3
Rainmaker
427,681
June Tassillo
Owner/Broker RE/MAX Elite Realty - Franklin, NC
Let me help you with the next phase of your life!

Mike ~  I just finished a certification course on Short Sales & Foreclosures.  Here in Franklin, NC there are not many Short Sales but I see them coming.  I am glad to see that you kept saying BILL.  They want the details not just what you owe.  For instance, if you have a hospital bill they want to see the BILL not what you are paying each month or the balance for it.  Another key element that can be very helpful is both Agents know how to do a Short Sale.

Apr 03, 2010 12:33 AM #4
Rainmaker
871,250
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

I have a couple of clients that need to do a short sale - thanks!

Apr 03, 2010 12:34 AM #5
Rainer
105,036
Craig Richardson
National Realty - McLean, VA

Mike, thanks for the post.  My number one key for doing short sales on the buy side is not to show them.

Apr 03, 2010 12:49 AM #6
Rainmaker
98,076
Mike Giles
Keller Williams Realty- North Shore - Beverly, MA

It sounds so easy...  I agree John, the banks drag things out too much,  My negotiator has a website that the seller, listing agent and buyer's agent have access to. The transaction status is updated usually about twice a week. This assures everyone that the process is still moving forward.

Craig-  If it is the right property for your client it can be worth the wait.  You need to set the expectations let them know that it will take 90+ days.  If the listing agent is not using a negotiator, make one of the contingencies of the contract that they need to use yours.  Take as much control as you can to get your buyer the best deal.

Apr 03, 2010 01:15 AM #7
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Rainmaker
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Mike Giles

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