Short Sale Success Tips

The fastest short sale of my career thus far recorded yesterday.  I took the listing on January 3rd, we went into contract on January 6th, we got formal bank approval on February 3rd, we funded on February 23rd, and of course- we recorded yesterday February 24th. That means it took 51 days from the time my clients committed to selling their home to have the process completely finished.

How did we do it?

Well the first and most important rule of negotiating a short sale is to always be thorough and complete with any packages being submitted to the lender. When I submit paperwork to any lender, I always ensure that everything they’ve requested is included and in the same order the bank has listed.  I also include a table of contents to ensure there is no confusion for the person on the receiving end of the package.  Negotiators are always appreciative when you can make their jobs a little simpler.  I also follow up consistently and frequently to ensure that the bank is up to date with any progress we’ve made on our side, and also to stay posted on how far along they are on their side.

We were very fortunate to have found a buyer for the property in record time.  Believe it or not, the buyer found my listing on Twitter!  Social media has become an amazing advertising tool, and should be used accordingly.  This is not to say your agent should be plugging your home every day!  If he/she did that people would stop “following” them just to avoid the spam or they would simply ignore their posts.  Obviously not what you want.  Fortunately, the buyer that found us happened to be an all cash buyer which meant we would not have to worry about funding complications.

It’s important to note that if, as a home owner, you have received a cash for keys offer from the bank offering a short sale that, that amount be included in your HUD.  These sellers received a very large cash for keys offer which is what motivated them to list their home.  It turns out that abnormally large offer was mistyped and intended to be 10times smaller, but the person who entered it into the computer added an extra zero to the end!  HOWEVER, we had the offer in writing.  We were able to include this offer in our HUD settlement statement and still get the bank a large enough payoff to close! My clients couldn’t be happier with their fresh start- being out of their overvalued home, and having $30,000.00 cash to move themselves forward.  Please be advised that this is not common.  IF you find yourself in a similar circumstance, make sure your agent fights for you because the bank will not readily back down and concede to giving you this kind of cash.

We were fortunate enough to only be dealing with one lender and an HOA lien.  The fewer people involved the better.  As a homeowner, it is in your best interest to keep the liens on your home to a minimum if your intention is to short sale at some point.  If the HOA had refused to settle it could have potentially killed the deal. (Although, it would not have been in their best interest to do so) This is true with any lien holder, so if at all possible- stay current on your bills outside of your mortgage that could potentially place a formal lien on your property.

The bottom line is, it is absolutely imperative that you enlist the services of an experienced agent when considering a short sale.  If you’re curious about your options, call me today!  I’m happy to sit down with you and go over your unique situation.

From the first time home buyer to the savvy investor – from the seller with equity to the seller underwater and needing options – I am here for you.


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