Getting your short sale offers on a “fast track” seems to be a buzz phrase to push lenders into making their decisions quicker. The obvious intent is to shorten the process so that houses get on the market quicker and the seller can move on with their lives. Unfortunately, the best of intentions from all parties is stymied by the sheer volume of offers that plague loss mitigation departments. Sometimes the best approach to expediting your offers is using the same tried and true methods that you’ve always used or should have been using.
Below are 5 simple strategies that will help get your deals through the funnel faster.
- Get help from an attorney – Even if you’re only doing a few transactions, using an attorney can really push your files through the process. Not only do they lend a certain amount of credibility to your negotiations but they may put their fee on the HUD-1 and build it into the spread.
- Build rapport with the lender – I don’t necessarily mean chatting it up about their kids or holiday plans (even though that is certainly an effective way to loosen them up) but more so geared toward following up with their requests in a timely manner, being available to them when they call for updates and generally not making their day any worse than it is. Understand that they have hundreds of files that they must process, convey that understanding to them, help them help you and you’ll benefit exponentially.
- Send only completed packages – If you really want to limit your chances of ever getting that coveted acceptance letter, simply send the lender a few pieces of the short sale offer one day and a few more next week, etc. Sending anything less than EVERYTHING they need at one time will all but kill your deal. Instead, gather all required documents and send everything to the lender at the same time. PRO TIP – write the loan number on every single piece of paper you send them and make sure documents are signed and dated by the seller.
- Work with a real estate agent who ‘gets’ it – Let’s face it, there is often a misconception by agents and investors about the other party. Investors tend to not like working with agents and vice versa. Communication by both parties to the other is key to getting deals done. Now, not every investor knows what they’re doing and the opposite is true as well. Finding a real estate agent that fully understands the short sale process is priceless and could mean the difference between chasing your tail and getting deals to the closing table.
- Follow up, follow up and more follow up – At the risk of implying that you should make a pest of yourself, you should definitely make follow up phone calls to the lender at strategic times. You’ll want to contact them just after submitting your authorization if you’ve sent it prior to your offer. Again, you’ll want to make sure they received your short sale package, so, call soon after sending it. Call again every few days to monitor your BPO request and pending auction dates. The point is to stay involved with the file but don’t make a nuisance of yourself. There is no need to call daily unless you’re getting close to an auction date. Above all else, respond quickly to their requests.
We all wish that short sales would move quicker and efficiently but the reality is that they still take time to process. Taking a common sense approach and treating your deals as a valid business will keep them and you on track even if it isn’t the “fast track.”
I have more tips on stream lining and making your short sale transactions more efficient and so please take a look at a few videos that we’ve put together. You may also visit, www.MikeBridges.info/agentvideos.
To your success,
Mike Bridges
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