A few "helps" if you're listing a Short Sale

Like most real estate instructors, I am spending more and more time teaching on Short Sales and Foreclosures.  I firmly believe that starting off on the right foot, covering your bases and establishing expectations with the Seller is the key to getting these difficult transactions done. 

Part of the Listing Agent’s job, should they accept the responsibility of the Short Sale listing will be to work with the lender.  Negotiations and Asset Managers typically will not discuss the Sellers information without a release from the Seller.  Also, they are going to request from the Seller a lot of information.  Jennifer and I have put together a packet, from our experiences with Short Sales,  that we use to help with this process.  We’ve found them very useful.

Whereas, I am not an attorney, nor your broker; I am adding links to our forms below so that you can see the model that we use and hopefully make your life a bit easier.  You should confirm with your broker before using any forms with your clients.

Short Sale: Seller Packet

Short Sale: Permission to Negotiate

Short Sale: Permission to Obtain Payoff

Also, sellers who are in trouble should be going to www.995HOPE.com or calling 1–888–995–HOPE.  This is a resource setup by the government to help folks in trouble with their housing situation.  Even if they are listed this resource may help buy you time to sell the home.

 

Comments

[Rocky]

Matt,

Short sales have trippled in the last few years. The banks are just now catching up with the staffing and infastructer to keep up.

One very important point to remember about listing a "Short Sale" that makes the process go much easier....

GET THE LENDERS APPROVAL FIRST!

Too many agents are throwing this term around whit out having the ducks ina row.

This is causing a lot of the delays and frustration with buyers, agents, and the sellers.

[Brad Nix]

Great tips about Short Sales! I will be sending this to all of my agents today.

[Matthew Rathbun]

Rocky,

I get what you're saying, but I am not sure I agree that their infrastructure is yet sufficient for the actual needs of the market. The companies that we work for seem to have very untrained and very over burdened staffers, who have no incentive to help meet reasonable closing deadlines.

I guess I don't share your hopes for them fixing the problems. Lenders simply do what they wish from cutting commissions agreements (of which they aren't a principal to) to delaying closing at whim and they are getting worst with little recourse.

In many instances if Listings agents try to get pre-approval for short sales; they could die waiting and even then the lenders won't provide a minimum amount they will accept i the hopes that seller will continue to try and seller for a higher amount...

It's just a mess. I am just trying to help the agents minimize the continue damages to the seller.