Here is a list of things you will need to know in order to submit your package successfully:
1. Lenders will not talk to you unless they have written authorization from the borrower(s). It is always a good idea to get the Authorization to Release Information signed first so you can call the lender, fax it over and then start talking. Most lenders take 24 - 48 hours to get this into their system so give it a couple of days and call back. Your goal at this call is to determine if the file has been assigned to a loss Mitigator already. If this is the case get their information so you can send them what you have. If not then be persistent with the Customer Service person and make sure you are getting the correct fax number for the department that you need. This can be a very frustrating process and you may have to resend your package many times so be prepared!
2. Submit a complete short sale package and make sure it gets assigned to a loss Mitigator quickly. Once a package is submitted it has to get assigned to a loss Mitigator. If it doesn't get assigned it will never be seen. Make sure you follow up to confirm that the lender has received your package. Again, lenders lose short sale packages all the time or claim they never received them. Follow up is key.
3. Be persistent, lenders are inundated with foreclosures and are swamped with files. The only way to push things forward is to make sure you are "pleasantly persistent." Do not call every day, call every other day or every third day. Do not always leave a message on every call. Just hang up and call back.
4. Ask the Mitigator who owns the loan (FNMA, FDMC, FHA, VA, CONVENTIONAL). Ask also if the loan has Private Mortgage Insurance (PMI) this is also critical. All this information will make negotiating much easier. We will explain why later.
5. Once the Mitigator has your package they will usually order a Brokers Price Opinion (BPO). Insist that this be an internal BPO not just a drive by especially if the house is in need of any repairs or it has defects that cannot be seen from the road.
6. Conduct an effective BPO.
7. Make sure you know what is on title. Get a title report after the BPO gets done. Deal with the issues on title. You don't want any surprises at closing.
8. Call the Mitigator about 5 days after the BPO. They should have it by then. Usually they don't tell you what it came in at but ask anyway, you might get lucky. The Mitigator at this time will either accept your offer or counter.
9. If they counter go back to your buyer and let them know what is going on. They may come up on the price. If not then keep the property listed and find another buyer. Submit all offers to the Mitigator. This will show them that the market is hurting and they may change their thinking. Validate your case. Show them days on market, number of properties for sale in that area, etc.