Tuesday, October 13, 2009

How to Close a Short Sale Transaction, Really! From CAR Expo 2009

For all you agents and principles swimming through the often tedious short sale waters (insert “Jaws” theme) here is some 411 that may help steer the ship. Of the numerous seminars we attended the recently concluded CAR Expo 2009 in San Jose, we found the “How to Close a Short Sale Transaction, Really!” one of the more informative. The panel included Carla Wilcoxen, Mona Rose, Kathy Mehringer and Ron Tremlay (formerly of Wachovia bank).

So without of a lot of prologue here are some of the keys to a successful short sale:

1-When submitting a short sale package (and assuming that you know the right stacking order) put the loan number on each page. The banks get thousands of documents and it helps to keep the file orderly.

2- Submit a professional fax cover sheet.

3- Don’t use an outside (third party) short sale negotiator. If you are an agent who needs to use one then keep in on your team or someone in-house. Use the money that you would pay a negotiator as a buyer’s incentive instead.

4- Keep in mind that the Short Sale is stressful on the bank negotiators end.

5- Make sure that buyers are committed and know the process.

6- Don’t wait until NOD has been filed to start the Short Sale process. Hallelujah!

7- Don’t delay in getting the third party authorization for your lender and agent.

8- Keep in mind that anti-deficiency laws only apply to foreclosures – not short sales.

9- Don’t negotiate anything outside of escrow, unless committing fraud floats your boat.

Happy Short Selling!

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