You are reading this blog because you care enough about your future to look for better direction, more confidence and greater capabilities. Perhaps you want to do more Short Sales (or your first one) but you don't know exactly how to make them work for you. "Where do I start?" you ask.
Even if you could just pick any starting point, you soon find yourself asking "What makes me different?" "Why should they choose me?" And once you figure out that you really do have meaninful relationships in your Circle of Influence that will support this opportunity, you find yourself wondering how you are going to handle the entire Short Sale process and what impact it will have on the rest of your business (and personal life)?
While I don't have all of the answers about Short Sales, I do have a lot of them. So you may be asking, "Where do all the answers come from?" Experience? Of course it helps to have experience. But what if you don't have any? Good question!
In fact, that's indeed where good Short Sales come from. From asking all of the parties involved in each transaction a lot of them. Good questions, that is.
Let me ask you a few:
1) Do you start your Short Sale Listing paperwork by obtaining a 3rd Party Authorization, and engaging a Real Estate Attorney and CPA as part of your initial face to face meeting?
2) Do you begin your process of a Short Sale Listing by contacting the Lender (with the Seller on the line) to ask the bank who the investor is on this case?
3) How often do you ask the Lender if there have been any recent changes to the investor's requirements?
4) Do you ask the Lender what their minimum net is based on? What formula are they using?
5) Will they accept valuation appeals and to whom should they be submitted?
6) Will they review only the Highest Net Offer, or do they want to review all Primary and Back-Up Contracts?
These are just a few examples of the very many important questions that you must ask your Seller's lender if you expect to have a Successful Short Sale.
As a Buyer's Agent (or Buyer) moving along the path of Buying Short Sales, let me give you a little fair warning.
Make sure the Listing Agent has his/her ducks in a row. Otherwise, you are wasting yours and your customer's valuable time. And if you don't know what it means to "have your ducks in a row" in a Short Sale, then don't do a Short Sale, or refer it to someone who understands the process. (You and) Your client will be glad you did.
Here's a quick tip:
The fastest way to complete a Short Sale is to have your own unique replicable process, that is proven to work. Then, make sure it is highly adaptable to change. And then as soon as you think you have it figured out, get ready to chsnge it! Because if there is one thing that never changes about Short Sales, is change.
With over 20 years as a Mortgage Professional and 16 years as a Real Estate Broker, I have developed a some unique processes including The Distressed Seller Transformer™, The Short Sale Accelerator™, and The Foreclosure Eliminator™, all designed to provide the clarity needed for all parties to make faster, more confident decisions when doing Short Sales, and in doing so, generating more closed transactions.
And whether acting as an agent, a lender, a buyer, or a seller, isn't that what we all want?
So be bold! Ask questions! And leverage the responses you get to your questions to make the changes necessary to your process to ensure you are developing a highly effective team, dedicated to getting every Short Sale you list or buy, to the closing table.
As agents, we are not just about selling and buying houses, we are about helping people establish the best enviroment for a "Home." And "Home" is where we live. I LOVE working from "Home" when I can. In fact, it's where I am as I type this Blog. So let me close by saying that Short Sales may not be the only way to get where you want to go in this market, but if you take the right path, you'll soon find that it's ....
....The Short Way Home™,
Scott Korbin, MBA
Broker In Charge
Triangle Home Masters