We all know that short-sale transactions are long & tedious and in short "a patience test". I used to believe that it would take 45-60 days to close a short-sale transaction. However, I am experiencing a 60-75+ days to close due to some lenders/negotiators ways of not responding right away and/or not responding at all! I know the number one thing is to submit a complete package as requested by the lender/negotiator and I do. It's just that not only is it a patience test for us as agents, but it is more of a patience test for both the anxious sellers and the worried buyers. I am looking for ideas on how we can shorten the time process in getting short sale approvals from lender/negotiators. Please share without me your ideas and expriences. I'd really appreciate it!
I try to provide the lender with everything at one time.
1. The listing agreement (the entire package)
2. A list of agents or appraiser that complete BPO's in that area
3.If an offer has been made I send the whole thing with the loan # of the seller on every single page
4.I document on the fax cover what every page contains For example.Page 1-14 Listing agreement and offer. Page 15-27 Hardship letter and seller paycheck stubs and etc.
This seems to help out a lot
Make sure Wells is not the mortgagee. = ) I have heard this over and over from investors that when they try to do a short sell Wells is the most difficult. We sell our 100% conforming loans to Wells because they have the best pricing so they have good points! Just know that they will be a challange! I would post this in an investor group. Let me know if you don't get any more responses and I will contact an investor of mine who specializes in short sells to get some tips.
working on my first short sale listing, this is what I was told to include.
Hardship letter, Financial Statement (stateted), w2 tax return, paystubs, recent bank statement, recent motgge statement, listing agreement, borrowers authorization for each loan, listing agreement and estimated hud at what ever price.
If you have an offer you need purchase agreement, addendums, Comps, property profile which will also have comps. ( use comps from months back to show decline) also note short sales and foreclosures in the neighborhood.
I have book-marked this for future use. Thanks to all who have provided information.
I have just entered into my first in many years and on top of that my Buyer's are young and first timers.
I will be monitoring your comments...great post.
I wanted to share with you what has been working for me.
The analyst/mitigator that does not have authority to make decisions when the loss severity is too great or when the offer is not the full market value, you may considering escalating to a Senior/ Chief Loss Mitigator.
I send emails(after searching for an email address, most of the time I find it it is a big comapany everyone there will have there name at name of company) example firstname.lastname@example.org to the Senior/Chief Loss Mitigator, and I Cc the CFO.... It is amazing I seem to get quicker responses..
Getting the package to the bank BEFORE a contract is key. Not submitting multiple offers is another. These banks are totally overloaded. And fromthe listing side, if you start negotiating for a DEED IN LIEU while looking for a contract, the bank will have already had the appraisal and title work done. Of course, you can get title work done if you have a friend at a settlement company. Also, submitting a HUD, detailing the total shortfall is VERY HELPFUL. You have to assume that the negotiator sees it ONCE and you have to enough info before them to give you the yes or no after that glance.
Short Sales are the most frustrating thing I am experiencing right now. I have 3 offers out on short sales that have been out for 5 to 6 weeks, each of them, with not even a hint of a response yet. I just closed one that was almost 5 months beginning to end. I wish banks would get their act together ... no wonder we are in such a mess.
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