Learn What Can Kill Your Short Sale Offer

By
Services for Real Estate Pros

I'm a Short Sales Specialist and I've done hundreds of short sales for real estate investors.  When I first started doing short sales, I didn't have the luxury of attending a beginner's short sales workshop to help me get up to speed right away on the subject. So, naturally, the next thing I did was head for the Internet to see what I could find on the subject.  I came across a lot of stuff.  Some of the information was useful and some wasn't so useful.

Most of what I learned about short sales came from on the job experiences.  I spent a lot of my time gathering short sale documents from sellers, assembling short sale packages, faxing documents to lenders, refaxing documents, calling and recalling lenders to find out the status of short sale offers, and performing a long list of other duties just to unfortunately hear the words at the end of a phone call, "Your client's offer has been rejected."

As a result of these experiences, I decided to assemble a list of reasons I found to be responsible for getting short sales rejected.  At the top of my list is the seller's financials.  One of the fastest ways to get your short sale KILLED is by not including the seller's completed financial statement or by not including the seller's financials (e.g. recent W2s, recent tax returns, recent bank statements) in the short sale package. 

In case you weren't aware, MOST LENDERS WON'T EVEN LOOK AT A SHORT SALE OFFER WITHOUT THIS INFORMATION!!   Also, the lender will normally pull the seller's credit report to verify the information provided on the financial statement is correct.  They will then use this information to determine if they can pursue the seller for a deficiency judgment and will subsequently have the seller sign a note, but that's only if it's proven that the seller is able to meet the financial demands laid out in the note or agreement.

So, if a short sale is on your next list of things to do, please make doubly sure you don't forget to include the seller's financials in your short sale package.    

Comments (11)

Pete Jalbert
The Maui Real Estate Team, Inc. - Paia, HI
R(S)

Aloha Tracy, Welcome to AR. This is some good information.

Oct 29, 2008 12:00 PM
Tracy Miller
Canton, MS
S. S. Specialist

Pete, I'm so glad you found the information useful and thanks so much for the warm welcome.

Oct 30, 2008 08:45 AM
Craig Rutman
Helping people in transition - Cary, NC
Raleigh, Cary, Apex area Realtor

Well done Tracy!

In this age of hardship for many folks, knowing what to do and not do in their short sale situation is essential in helping them move on with their lives.

Oh, and welcome to ActiveRain!

If there is ever anything I can do to help you please shout in my direction!

Oct 30, 2008 12:18 PM
Tracy Miller
Canton, MS
S. S. Specialist

Craig, I'm glad you had a chance to view my blog and appreciate your comments.  Also, I appreciate your offer of help.  Don't be too surprised if I take you up on your offer. 

Oct 30, 2008 12:29 PM
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Tracy...

Around these parts (Florida) what kills a short sale faster than anything is if the Sellers committed Mortgage Fraud without even realizing they did it. Yup. It happens. And it's happening much more frequently. Mark my words, we're going to be seeing more and more of that before the dust finally settles.

Now before I go allow me to Welcome your Reciprocating body to Active Rain. Take care and I'll be keeping a Cats eye on you :) 

TLW...ROAR!

Oct 31, 2008 04:10 PM
Tracy Miller
Canton, MS
S. S. Specialist

TLW, thanks so much for sharing your short sale experiences in Florida with me.  Also, I appreciate the friendly welcome. 

Nov 04, 2008 11:45 AM
Chris Fisher
Your Virtual Assistant - Concord, CA

Tracy - You are obviously off to a very good start.  Short sales are confusing to me and I appreciate your expertise and explanation!  Welcome to Active Rain, I can see you are an asset to the community.

Nov 15, 2008 02:56 PM
Michele Reneau
Certified Staging Professional (CSP) Elite Instructor - Summerville, SC
Realtor, GRI ~ Charleston, SC Relocation Experts Team

Look forward to reading more about short sales from you.  I have stayed away from them mostly referring the business out because I know they can be pretty frustrating.  Learning more about them will help me tackle them myself.

Nov 17, 2008 02:04 AM
Tracy Miller
Canton, MS
S. S. Specialist

Chris:  I hope I'm able to make short sales less confusing to you, and thank you so much for saying that I'll be an asset to the AR community.  You really do know how to blow up a girl's head.

Michele:  Thank you so much for stopping by and reading my blog.  I hope after I've published some more blogs on this subject that you'll be less frustrated by managing and negotiating short sales yourself.  I think if anything, after becoming more familiar with short sales, you'll decide that they're probably more time consuming than anything else.

Nov 18, 2008 02:59 AM
Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Central Maryland

Your info is great. I am subscibing to keep up with you.

Nov 28, 2008 12:22 PM
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

Tracy:  I always enjoy your posts.  Keep up the good work. 

Mar 05, 2009 02:16 AM