If you are involved in short sales, you know there is nothing short about them! At least not with the time factor involved.
But educating yourself in the short sale process and offering this service to your customers can prove to be an extremely lucrative part of your business.
- Before venturing out into the short sale field, get training! Working short sales is deeply involved, and as a real estate professional you better know what you are doing before you agree to do a short sale for a homeowner. Don't just take a class at your local board, and believe yourself to be a short sale expert. You are far from it. Research and become trained by the specialists that are actually working short sales, and know what it takes to get a short sale approved, from beginning to close.
- Educate the homeowner. Be upfront and honest right from the start. Do not make promises to the homeowner, and do not advise! Remember, always...you are not an attorney and cannot advise legally. Explain the process thoroughly, and let them know what they can and cannot expect. Discuss thoroughly the possible outcomes, including the possibility of 1099 tax consequences, requests for promissory notes from HELOC lenders, or Private Mortgage Insurors, etc. I always suggest they contact their attorney and/or accountant for further information.
- Be thorough and prepared. When you make the commitment to assist the homeowner in obtaining a short sale offer, and take on the responsibility of negotiating with their lender, be sure you have everything you need to go a good job. Know exactly what the lender will require when you submit an offer on behalf of the seller, and ensure you have every item. If the seller is unable to supply you with an item, be sure they supply you with a reason in writing. For example, "I am unable to provide pay stubs, as I have not been employed for the last 4 months."
- Stay committed and organized. I follow a precise system for every short sale. I do not accept a listing until everything I need is supplied by the seller. Authorization to release information is sent to the lender immediately, and followed up with a call to ensure they have it recorded. Pertinent questions are asked during that initial call. When I receive an offer on the property, the entire pre-prepared package is sent to the lender with the offer. I place a call to the lender every week, and speak directly to the negotiator to track where we are in the transaction.
- Record all activities. Every call that is made or received, every fax sent , every conversation or inquiry, etc, is recorded. I offer buyers, sellers, and co-broke agents an update every two weeks, preferably by email.
I'd love to hear any comments or feedback from those in the industry that are currently involved in the short sale niche! Share your experiences...we can all learn from each other. You can contact me directly at Florida Short Sale Company, 941-916-2251. This post and more can be found at AgentWhiz.com
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