Short Sale Success

10 Steps To Short Sale Success

Hi there, my name is Rob Chevez and I’d like to take you through the 10 steps that we undertake when we put people through our S.M.A.R.T Seller Short Sale Program™. The short sale process can be a very finicky operation so there really has to be a set system in place, otherwise you could be really taking a chance.

Step #1 – Consultation

The first step is a 30 minute, no-obligation consultation about your unique situation. Everybody has a different situation. It could be divorce, relocation, job loss, medical, or a combination of all of them. We need to get an understanding of whether or not we have a chance of getting your short sale approved. We’re here to help. Call me at (703) 212-3344 for this 30 minute, no-obligation consultation and I’d be more than happy to walk you through your unique circumstance.

Step #2 – Short Sale Package

We’ve determined that you can potentially qualify for a short sale so we will then e-mail you our short sale package. In this short sale package, there’s going to be certain disclosures about doing a short sale and also a list of the required documentation that you’re going to need in order to get a short sale approved.

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

In this step, we’ll schedule a strategy meeting in our office where we review your short sale package in detail. By this point, you’ve filled it out, you’ve emailed it back to us and we’ve reviewed it and we may have some questions about the package specifically so we’re going to want to sit down with you and kind of guide you through step-by-step on 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 and we’re going to sign the listing paperwork at that time, which is required by the bank, but really the main purpose is to get a lot of those last minute, unanswered questions about the process answered for you and to set a strategy for a play-by-play of what’s going to take place with the short sale moving forward.

Step #4 – Short Sale Marketing

There are very specific things that we do to make sure that your property is positioned correctly in the marketplace, both from getting an offer perspective, but also getting the offer approved. We’re going to go through that strategy with you in our strategy meeting, but it’s really to kind of a kick-start of our marketing process.

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

By this point we’ve marketed the property and within 2-4 weeks, we’re going to get an offer that we’re going to ratify with the bank with the right buyer, a buyer that’s going to stick with us for the entire time that it’s going to take to do the short sale. There’s a lot of qualification that happens when we select that contract, but when we do, we then take that contract and we submit it in to the bank. Sometimes we’ll submit it in with the package. Other times we’ve already submitted the package into the bank, but some banks want it so that we submit everything at one time. Point being we submit it into the bank and then within 48 hours we’re contacting them to move the process along internally within their system.

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

A Broker’s Price Opinion (B.P.O) is essentially an appraisal that the bank orders to determine whether or not the contract that we have is fair market value.

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

On a monthly basis, the bank is going to want updated bank statements and that they’re always going to be requesting additional this, additional that. You just need to be aware that that is part of the process. Our job is to be able to get that information to them as quickly as possible, even if we sent it to them before, we’re going to need those docs and send them again. That’s just the way the cookie crumbles.

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

This game is about constantly being updated. Every Friday you’re going to get either an e-mail or a call from us about what’s going on in the process with your case. Even if there is no new news, you’re going to get some form of update and it might just be ‘nothing new to report’, but we want to keep you engaged and informed about what’s going on.

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

For the last several months, we have been negotiating with the bank every single day on your behalf and towards the end, we start getting the positive signs from the bank that this is going to get approved.

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’re close, almost at the finish line with a big smiley face because we’ve gone down this road together and we’ve now gotten the best approval letter we possibly can get for you and we all go to settlement so that you can essentially breathe a sigh of relief and 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 of a short sale and we look forward to helping you through that process.

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.