Short Sales Closing Faster!

By
Real Estate Broker/Owner with Elite Realty

Short sales closing faster, definitely something every Realtor out there is looking for during this crazy economy we are working in lately. I just wanted to share some of my short sale techniques and tips that have helped me close short sales faster. They always say knowledge is power so here is some for all of you wanting faster closing short sales.
Tip #1 Show me what you're working with! In your first call/meet with your client take notes on who their mortgage co is, what is owed, any other liens on the home, what their situation is and outline a game plan for what they need to do and what you are going to do so that all of the expectations are on the table from jump. They need to know that you are going to work for them but they need to work for you too meaning if you ask for a fresh bank statement they need to get it to you within 24 hours so you can get to the bank and your file doesn't keep getting buried. Use the famous phrase "Help me help you!" Short sales are a team sport and the sellers have to play an active role to get it done.
Tip#2 Know who you're dealing with! The bank the seller has is going to be the biggest player in this deal so the minute you find out who it is Google them and go to their website. Read all the info on their site about short sales and their process. Print and download all docs under their short sale tab for use with your file. Call them and ask their protocol with short sales ask where they want their auth sent, where do they want their package sent, do they prefer fax, email, or overnight. Short Sales are like dating the bank you want to know their likes and dislikes before you even start the relationship.
Tip#3 Run comps and list at market price. This is an error that so many agents make they list to high thinking they must marinate a short sale which is not the case I have had deals close that were only on the market 3 days. Others make the opposite mistake and list low expecting it to go fast and bank to take but then you end up with angry buyers agents saying why did you list at 30 if bank wants 50k. It's all about the bpo and their appraiser is going to pull the same comps you do so price at market value.
Tip#4 Get it all the first time! Once you have done all of your homework and gathered all your docs go through the bank provided check list and double check you have everything on there. Be thurough about what you have to be sure every line is filled in and all your signatures and dates are filled in, this initial file sets the tone for the whole file so be sure it looks pretty, is in order, and makes sense. You want your file to tell a story in a fluid motion and answer any and all questions the bank may have. One side note don't send extras....there is no need to open Pandora’s box and unleash every nook and cranny of your clients life. If the bank asks for a rundown of your clients bills organize the name of bill and amount on one spread sheet don't send 85 different bills and hope the bank will make sense of it themselves because they won't. Keep it neat and simple. They will appreciate this and keep your file moving.
Tip#5 Label EVERYTHING!!! This is huge and has helped me immensely. On the top of every single paper put your clients loan number and what the document is. This will help keep you file together and help explain what they're looking at in a glance. It also helps when they are trying to pull something out and they can find it while scrolling through quickly when it's in pdf format. It's tedious to do but the banks love it!
Tip#6 Kill them with kindness! When you call the banks have your mind in the frame that they are your friend not the enemy. You are both working as a team to get this deal closed. Remember banks are huge and tons of people touch every file so be patient and kind when calling even if you're frustrated that the process is taking too long. If you don't like the response you get from the first person you get or you don't like their attitude don't be afraid to hang up and call back and get someone new either. If I get a real nasty attitude first I'll hang up call back and say oops I got disconnected I was trying to get a status on my file, in my most pleasant tone. It helps because as soon as you get frustrated or nasty with them that's exactly when your file gets "accidentally" removed and you have to start all over.
Tip#7 Persistence pays. I call on my short sales every other day and some banks every single day cough cough Wells Fargo. They will appreciate you following up as they are busy and things do get overlooked and your clients will appreciate the frequent updates.
These tips on how to get your short sales closing faster should get you rolling at much better pace. Good luck to all of you negotiators out there. It's a rough time but with knowledge and team work we can all get a little further!

Posted by

Trisha Boryszczuk

Wayne County Real Estate

REO, Short Sale, Foreclosure, First time Home buyers, Investors

Broker

Comments (4)

Christine Cumming SeaRealEstate.com
Real Estate Portfolio Acquisition - Santa Cruz, CA
California Real Estate and Business 831.588.7767

Hi Trish, You're ON IT!!!  I'm so excited that I got an approval from Bank of American in UNDER 5 days.  I had to get up at 4:00 am since I'm on the Pacific Coast and the bank was on the East Coast.  My first call at 4:55 am was to them.  I got all the details of everything they needed.  Got it all together THAT day.  Emailed and Faxed it that night.  In less than 48 hours the negotiator called me and said it was the easiest he's ever done since it was so complete and in order.  Then he asked for one more item... (Figures..  :-)  !!  ) I sent it to him within an hour.  And we got written approval the next day.  Yahoo!!!   

Nov 14, 2011 05:46 AM
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Trish - Great tips and suggestions for agents who represent sellers.  I know your tip #3 is so important on market value and sales price.  The BPO is a big part of the process and if you don't understand how the BPO's are being completed, you're at a disadvantage, and there will be some ugly surprises to get the transaction closed.  Thanks for sharing what you do for a faster short sale process.

 

Nov 14, 2011 05:54 AM
Trisha Dork
Elite Realty - Livonia, MI

Way to go Christine thats AWESOME!!!!

Nov 14, 2011 06:25 AM
Anonymous
Leticia Cortez

Wealth of helpful information!

Sep 05, 2012 05:02 AM
#4