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Short Sale---APPROVED!

By
Education & Training with AgentWhiz!

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

Jean Powers
Kane & Associates call 510.908.9002 - Alameda, CA
CRS,e-PRO,HAFA,SFR Broker, Northern California

Even with education, short sales are a pain in the you know what!

Jun 19, 2008 03:07 PM
Pam Joffe
Solaris Realty - Tampa, FL

Hollie - We try to educate the buyers about the short sales, but when they don't get the answers the way they want, it usually gets painful.

Jun 19, 2008 03:11 PM
Eric Reid
Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

Amen... Thank you for stressing the idea of education ... both for the agent and the buyer.. I handle 5 - 10 new short sales in process a month and I spend most of my time reminding everyone to great a great deal you have to slow down and work the process .. the very slow process but a good savings

Jun 19, 2008 03:14 PM
Carrie Perez
Elk Rapids, MI
MBA
Excellent advice. Very thorough and helpful. Thanks for sharing! Bookmarked!
Jun 19, 2008 03:15 PM
Michael Sahlman
www.HomesForVIPs.com - Keller Williams Realty - Miami Beach, FL
e-PRO - Miami Beach Florida Luxury Homes

Thanks for the post. It's good to know that some people are taking short sales seriously and training themselves properly. Keep the faith.

Jun 19, 2008 03:16 PM
Pam Winterbauer
Pam Winterbauer Real Estate - San Ramon, CA
"Providing Blue Ribbon Service"

Hollie.....that education starts the moment you walk in the door to view the home and meet the seller.

Jun 19, 2008 04:18 PM
Hollie Dustin
AgentWhiz! - Punta Gorda, FL

And the education aspect of doing short sales never stops, thats for sure. We learn something new everyday...whether it is the fact that Countrywide is "restructuring" once again, or that our file has been lost (that happened yesterday after 45 days of negotiating!).

Short sales are not the easiset thing we have ever been involved in..true.., but if you are going to work them, you just have to go in with a good plan and stay persistent. As long as you know what you are up against, the sellers, buyers, and co-broke agents know upfront as well...it makes the process easier.

You just go through the motions, do your job thoroughly and accurately, be consistent and persistent..it just becomes like any other job you do or have done in the past.

It just takes longer for the end result! Do enough of them, and the time frame doesn't matter as much, as you always have closings in the pipeline.

Jun 19, 2008 11:05 PM