Real Estate Agents!! need your help on a short sale

[B Wagner]

I don't know about your state, but in Georgia you have to submit all of them, as soon as possible to the bank. We have to have the Short Sale package ready; do a HUD1 or Settlement Statement; a commision agreement or instruction for attorney to distribute commisions; copy of earnest money check; money letter for the buyer or pre-approval; and a contact number for appraiser, so they can get into property. Other than the short sale package, you have to do evrything for every offer. Even with all that it could take up to 6 weeks to get approval...Have patience and tell your buyer to have patience-up front.

[BrokerJane]

With a short sale, the owner of record is asking their lender to allow the sale to occur and accept the funds remaining after normal closing expenses, and to release the seller from the loan contract they made. The lender knows the sale will be for less than what the owner of record owes (that's why it's called a short sale), but naturally they don't want to give it away either! Yes, they will contact someone to do a BPO. Even though the lender may order a BPO, that has very little to do with the offer. If your buyers are not pre-approved, that offer will be thrown in the trash the first day because you are wasting everyone's time. Don't confuse pre-qualified with pre-approved--they are NOT the same!
Write the offer like any other; unless the buyer's lender wants something done, be very careful if the buyer does -- the first lender isn't going to give much, if anything. You could blow the whole thing by letting the buyers get greedy -- they are already (probably) getting a good deal.
Inform your owner of record of the offer. If he is agreeable to the sale conditions, do not have him sign it yet! Have the seller initial it, or have a separate form stating that if the lender agrees to the sale, the seller agrees to sign the offer. Something binding.
I assume you already have the owner's permission in writing to contact the lender about this. When you submit the offer to the lender, make sure that you also send the entire short sale package! That package usually consists of: 1) a hardship letter from the owner; 2) either tax returns for 2 years or pay stubs, plus any bill copies or any other proof of why the sale is being requested (they lost a job, major illness or accident, etc); 3) the estimated HUD-1 if the sale closes; 4) the pre-approval letter from the buyer's lender; 5) the offer, any state required addenda and a copy of the earnest money check that has been deposited in your broker's trust (the lender will like a really big earnest money deposit far more than a small one); 6) a letter from the agent stating why a short sale is being requested (bad economy, owner has tried for a long time with no offers, etc); 7) all MLS sheets showing the property, date listed, price reductions and so on; and 8) a copy of the listing agreement and any/all extensions or changes. The lender may have other items they require to start the process of looking at the offer.
Be sure to tell the buyer's that this process usually takes close to 4 to 6 months before the lender will say "yes" or "no" and if it's yes, they will then want to close in less than a month. If it's yes, get everybody's signature fast, because they will want proof there is a binding contract.
If there are two people who want to offer, by all means, write both! If there are two (or more) offers, tell both potential buyers to be patient because unless one is really much better than the other, the lender willl probably keep both hanging on. Somewhere about in the middle, one of the buyers will give up and so they still have one buyer. Remember above, I said tell the owner of record and to get those initials or a separate form -- the seller can't sell the house if the lender won't release the lien. (Well, the owner could, but very few buyers would take on his remaining lien and other legal issues! Even if the buyer might, the buyer's lender and/or attorney wouldn't allow it!) The seller won't know who is actually buying the property until the lender decides whose offer, if either, is accepted.

[Mark Zarski]

My name Is Mark, and I am a Realtor in the Las Vegas Area, (including all of southern Nevada. I have worked with short sales on several occasions, and I will say, after the current one I am in, I WILL NEVER do another one. Between the Listing Agent and Myself, we have spent three (3) months trying to get Countrywide (the only loan holder) to approve this loan package. As with all of you, I am sure that every single piece of paper on gods earth has been submitted all at once, in a single package. My Buyers have come in at the list price (not approved, but fair as per the CMA), paying cash, and not asking for ANYTHING from the bank. Both us Realtors have desperately spoken to 10's and 10's of people at the Countrywide Brank in Van Nays, Ca. where this 1 loan is located, but to no avail. We can't get anyone to call us back, and everytime we do call, its always someone different to deal with, sooooo we have to start the whole story over again. I have spend much time on the internet to try and find the PHONE Numbers of the Corporate Officers to get ahold of them and demand that an response be forthcoming, but I can't find any single phone numbers to get too these people. Does anyone have any suggestions for us in the business to get ahold of these individuals, and start demanding quick responses to our offers???

Thanks Everyone
Mark
[EMAIL="RealEstateMark@cox.net"]RealEstateMark@cox.net[/EMAIL]