Short Sale Success
10 Steps To Short Sale Success
Step #1 – Consultation
Step #2 – Short Sale Package
They’re going to request your most recent bank statements, your most recent pay stubs, your last two year’s tax returns and any documents that are needed for your specific bank and your specific servicer. It’s critical that you fill this information out completely on the front end because that will determine success or failure when it comes to doing a short sale. We’ll email that out to you and it’s important to get it back to me as soon as possible.
Step #3 – Strategy Meeting
Step #4 – Short Sale Marketing
We get professional pictures taken and we’re going to make sure that the pricing is correct and in line with market value. We’re going to create demand amongst our buyers. We’re going to pre-market it into a list that we have of people that are interested in purchasing property. Once we we list the property, the goal is to get a contract within 2-4 weeks. We’re going to do it relatively quickly and we’re going to 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 and make it look perfect or anything like that. Our strategy prevents you from having to do that and we’ll explain how and why this is in our strategy meeting.
Step #5 – Ratify a Contract
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 received the contract and so that’s really it.
Step #6 – Broker’s Price Opinion
By this point, it’s probably been three weeks from the day that we submitted the contract to them. We’re aggressively following up and making sure that they received all the documentation that’s required. They are then going to order a B.P.O and that takes three weeks or maybe a month from the day that we have a ratified contract. We try to get them out there 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’re going to order their own B.P.O, but the point is it’s going to get ordered and it’s our job to make sure that that B.P.O agent gets into the house and that they get all of the information that they need to determine that the contract we have is fair market value.
Step #7 – Bank Statements/Documents
The people that are cooperative in that respect are the ones that get short sales approved. The ones we have to wait to get the documentation from and take a long time or are reluctant to provide updated documentation are, frankly, nightmare cases. Those are the ones that drag on for a long time.
Step #8 – Weekly Communication
It’s also critical that we keep the buyers 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 and they have to be patient in that process and the only way we’re going to keep them patient is by keeping them informed.
Step #9 – Approval Negotiation
Now an approval is not an approval. 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 possible get it for you.
Now there are situations that are beyond our control that the bank is just going to want something from the seller in consideration to approve the short sale, but that aside, our job is to do the best we possible can to negotiate those terms for you.
Step #10 – Approval
We hope that you call us. Engage us in conversation. At a minimum, we’re here to help you through this process, even if it’s just to provide advice about your current situation. We love to help.