I am in the process of working my first short sale with some basic training. Are there any official guidelines as to the process and what lender departments need to be contacted at the various intervals?
You will want to contact the loss mitigation department of the lender and get the checklist of what they will need in their package. You can also use the ForeclosureRadar Short Sale Report for additional information. http://www.foreclosureradar.com/short-sale-report. We highly suggest taking a class on how to process a short sale. There are several organizations that provide this training. You can contact your local Board of Realtors, California Association of Realtors, National Association of Realtors, CDPE.com or Harris Real Estate University to name a few.
First, get the Third Party Authorization completed and signed by the Seller - You can get this from the lender or use a generic copy.
Second, contact the lender and get their short sale requirements - this way you will have the latest forms and ask about their process flow, timelines, etc.
Third, submit only ONE offer that is fully exectued with an accurate HUD closing statement (buffer for time) and the other requirements - typically, listing agreement, purchase agreeement, HUD, hardship letter, Financial information form, banks statements and tax returns. Put the loan # on every page - Fax or deliver how they instruct you to.
Fourth, folow up and make sure they have the package - find out when the BPO (broker price opinion - like an appraisal) will be odered - Follow up every 2-3 days - dont be surprised if the story is different each time - yes we have the package… no we dont have the package - get used to it… dont whine - its just part of the program.
Take detailed Notes - each and every call - who you spoke to - what was said.
More advanced tactics include having the person type notes into the system - this way, it is logged - ofter I wait until I hear them typing…
Always be nice - as frustrated as you are they get it every day - probably 30-40 calls per day… I try to be the nicest person they talk to in their day - connect to them - there is a person at the other end of the line. How great would it be if that person went the extra effore and found your file or IM’ed the negotiator, etc.
Stay persistant and keep on it… When you feel like you are ready to give up, then you know you are getting closer! Don’t give up… you are leaving your Seller and the bank in a better place by completing a short sale.
Remember to find some space to have fun - this goes for homeowners, banks, realtors, etc.
BOB, MBA, CDPE, e-Pro
Talk to your lender, look for an assistance before moving to the next steps