I created the videos below to outline the 10 essential steps that people must go through in order to have a successful short sale in Virginia, DC and Maryland. Each video focuses on a different stage of the short sale process, and I hope you find them all useful. If you want to talk to me one-on-one about your short sale needs, don’t hesitate to give me a call or email me through the form on the right side of this page.
I look forward to helping you have a successful short sale!
Step #1: Understanding and Assessing Your Unique Situation
Hi everybody it’s Rob Chevez and today I will be walking you through the 10 steps that we need to take we put people through our smart seller short sale program. There really has to be a system to walking through this because otherwise you are taking a chance. Step number 1 is just a 30 minute no obligation consultation about your unique situation. Everybody has a different situation: it could be divorce, relocation, job loss, or a combination of all of them. I need to get an understanding of whether or not we have a chance of getting you a short sale proved so call me for this 30 minute no obligation consultation. I’m happy to talk you through your unique circumstances. I’m here to help.
Step #2: Get the Short Sale Package
Okay so step number 2 we’ve determined that it you can potentially qualify for a short sale, so we will then email you our short sale package. In that short sale package there’s going to be certain disclosures about doing a short sale, and also the required documentation that you are going to need in order to get a short sale approved. So we are going to request your most recent bank statements, most recent pay stubs, your last 2 years tax returns, and any documents that are needed for your specific bank and your specific servicer. You see it’s critical that you fill this information out completely on the front end because that will determine the success or failure when it comes to doing a short sale. So that’s step number 2, and we’ll email that out to you. Get it back to me as soon as possible. Thank you.
Step #3: The Short Sale Strategy Meeting
So step number three is a strategy meeting in our office where we review your short sale package in detail. By this point you filled it out, emailed it back to us, and we reviewed it. We may have some questions about the package specifically; so we are going to want to sit down with you. The goal is to guide you through step by step what you can expect in this process. We may correct some things that are in the short sale package to increase our chances of getting an approval. Also we’re going to send a listing paperwork at that time, which is required by the bank, but really the purpose is they get a lot of those last minute unanswered questions about the process answered for you. Also to set a strategy for a play by play of what’s gonna take place with the short sale moving forward.
Step #4: The Implementing the Marketing Plan for Your Short Sale
So step number 4 is now going to be implementing a short sale marketing plan. They’re very specific things that we do to make sure that your property is positioned correctly in the market place. Both from getting an offer perspective, but also getting the offer approved. So we’re gonna go through that strategy with you in our strategy meeting, but it’s really to kind of kick start our marketing process. We get professional pictures taken; we’re gonna make sure that the pricing is correct in line with market value; create demand among certain buyers; will get to remarket it to a list that we have people that are interested in purchasing property, etc. The goal becomes once we listed: we’re gonna get a contract within 2 to 4 weeks. It will happen relatively quickly and we will get the highest net possible that we can from the bank. Here’s the other thing: you don’t need to go and try to fix your property make it look perfect or anything like that. Our strategy prevents you from having to do that. We’ll walk out through with you the strategy meeting so that’s step number 4.
Step #5: Ratify the Contract and Send it to the Bank
So step number 5 is to ratify a contract. By this point we’ve marketed the property and within 2 to 4 weeks. We’re gonna get an offer that we’re going to have ratified with the bank, with the right buyer. A buyer that is gonna stick with us for the entire time. So there’s a lot of qualification that happens when we select that contract, but when we do we then take that contract and we submitted in to the bank. Sometimes we’ll submit it in with the package. Other times we’ve already submitted the package into the bank. Point being we submitted to the bank and then within 48 hours were contacting them to move the process along internally within their system. See it’s critical that there’s constant communication with the bank to make sure that they received all the documents that they needed, and that they receive the contract. Step number 5 is a ratified contracted, submitted to the bank
Step #6: The Bank Orders the BPO
Step number 6 is the bank is going to order a BPO, which stands for a brokers price opinion. It’s essentially an appraisal that the bank orders to determine whether or not the contract that we have is fair market value. Now by this point it’s probably been 3 weeks from the day that we submitted in the contract to them. What happens is they were see the contract; we’re aggressively following up and making sure that they received all the documentation that’s required. They are then going to order a BPO and that takes 3 weeks maybe a month from the day that we have a ratified contract. We try to get them out there is as soon as possible. Some banks have become incredibly efficient at this, and as soon as they know that a short sale is being done they are going to order their own BPO. The point is it’s going to get ordered, and it’s our job to make sure that BPO agent gets into the house, and that they get all the information they need to determine that the contract we have is fair market value.
Step #7: Organizing and Gathering Your Documents for the Bank
So step number 7 is monthly bank statements and other documents. What that means: on a monthly basis the bank is going to want updated bank statements. They’re always going to be requesting additional this, additional that. You just need to be aware that that is part of the process, and our job is to be able to get that information to them is quickly as possible. Even if we sent that to them before we need those documents and send it again. It is just how it is. The people that are cooperative in that respect are the ones that get short sales approved. The ones that we have to wait to get the documentation from, and it takes a long time with some reluctance to give us the updated documentation: those are the nightmare cases. Those are the ones that drag on for a long time.
Step #8: Weekly Communication
Step number 8: weekly communication. So important. This game is about constantly being updated. Every week (every Friday) you’re gonna get either an email or a call from us about what’s going on in the process with your case. Even if there’s no new news you’re gonna get some form of update, and it might just be ‘Hey nothing new to report’ We want to keep you engaged and informed about what’s going on. It’s also critical that we keep the buyer’s agent engaged and informed because they’re highly impatient. They want to know ‘can this happen tomorrow’ and the truth is it’s a process. They have to be patient in that process, and the only way that we’re going to keep them patient is by keeping them informed.
Step #9: Approval Negotiation
Step number 9 is approval negotiation. For the last several months we’ve been negotiating with the bank every single day on your behalf. Towards the end we start getting the positive signs from the bank that this is going to get approved now. Not all approvals are created equal: some may have deficiency debt in them, some may require the seller to pay a note, or may even bring a cash contribution to the table. Our goal is to wipe all that out, and so we’re negotiating that approval letter towards the end to make sure that it is as clean as we can possibly get it for you. There are situations that are beyond our control, and the bank is just gonna want something from the seller in consideration to approve the short sale. That aside, our job is to do the best we possibly can to negotiate those terms for you.
Step #10: Close the Deal, and Move On With Your Life!
So the final step is step number 10. It is close with a 🙂 because we’ve gone down this road together, and we’ve now gotten the best approval letter we possibly can get for you. We all go to settlement, and you essentially get to move on with your life. It is an overwhelmingly satisfying feeling for me to be able to help my clients get out of this messy situation. We look forward to helping you through that process. We hope that you call us engages in conversation, at a minimum, we’re here to help you through this process. Even if it’s just the provide advice about your current situation; we love to help. Thank you for watching the videos, and we look forward to helping you sometime in the future. Take care.