5 Ways To Take The Frustration Out Of Short Sales
- Find out what the lender requires for a complete short sale submission. Then make sure to submit a complete packet. Documents trickling in at various times are easily lost.
- Make sure your short sale negotiator always has updated financials: paystubs, banks statements, P&L statements and taxes. If the negotiator has to request new paystubs, your file will go back to the end of the line because a decision could not be made.
- Educate the buyer about the time frame of a short sale make sure they understand the process is longer than a typical retail sale and could take 90-120 days (check the time frame as each lender is different). Managing expectations is key to a smooth transaction.
- Check with your seller for 2nd liens and get the client to start the ball rolling to get approval from the 2nd lien holder. A lack of approval from the 2nd lien could kill a deal.
- Research and know the current value of the house. Check with your short sale negotiator for the current value and the age of the valuation. If the value is close to expiring or the value you have was given to you more than 90-120 days ago ask if you can get another one. You don’t want value issues holding up a closing.