1. Have the sellers sign a pre-foreclosure disclosure, which includes a notice of possible "phantom income" and receipt of a 1099.
2. Add to the MLS remarks that the sale is contingent upon lender approval and receipt of an "as-is" addendum.
3. Price the house 5-percent to 10-percent below market to ensure a quick sale.
4. Have the buyer and selling agent sign a separate pre-foreclosure addendum, which includes a possible commission reduction notice.
5. Locate the loss mitigation officer assigned to the file and get his or her direct phone, fax, and e-mail contact info.
6. Ask about the short-sale policies for the lender.
7. Ask what you can do to expedite the transaction.
8. Check the title policy every 30 days.
9. Send a complete short-sale package that includes: intro letter, hardship letter from the seller, listing agreement, comps, estimated net sheet or HUD1, the first page of the past two years taxes, the last two pay stubs, and the last two bank statements.
10. Request that the lender not send a 1099 to the seller, and marks the credit report "paid as agreed."
*****As posted by Paul Pastore