I've been doing short sales since the late 90s.  My first was with Wachovia.  So, been there, doing it, still doing it.  Now that we've gotten that out of the way.......

For some reason, over the past several years, most of my shorts have either been FHA, HAFA, or some sort of BoA co-op short sale.  The similarity between all of these is that I was always able to 'start' the process without an offer, front-load much of the paperwork and in most cases, receive a value from the bank/servicer/investor before I market.

This has always served me well because it cut down the 'approval' time, and I always knew what number the bank wanted.  I was more efficient in procuring and keeping buyers because I was able to give them a sense of security when they placed an offer.  When I submitted the offer, I knew if it would be accepted or not.

Lately though... I've been running into more and more shorts where the 'bank' won't even open a file until a complete package WITH offer is received. (in fact, SPS just told me that they are still doing HAFA, but they don't have to play by HAFA rules.)

Many of you don't have a problem with this.  In fact, I know that many of you prefer to go the 'traditional' route anyway.  Go ahead and market it, get the best offer you can get, submit it and get it done.

Yeah... I get that. But when you do it that way, isn't your 'approval' time longer?  Don't you have a harder time keeping buyers on the hook because they have to wait for the BPO/Appraisal, processing of initial paperwork, etc, etc?

Help me come to the conclusion that the old way of doing short sales is still productive.  Help me feel better about marketing a short sale when the bank hasn't received paper number 1 (except for an authorization).  Help me feel better about dangling my best guess of a price in front of buyers and hopefully not wasting my time with a range that I think is fair but may not be what some office worker in Utah might think is fair.

Help me fundamentally change my way of thinking....

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Drew.  I have been doing short sales as a full time negotiator since 2006.  I am also a big proponent of the traditional short sale, and I avoid the front loaded SS whenever possible.  Here is my reasoning:  When we allow the lender to dictate selling price, they inevitably want more than local market value. What I find is that any time I save by starting the process early, I lose by having to dispute values. This evens things out, and I still find my average to be 60-90 days.  I prefer to tell the bank what we can sell it for by submitting a legit offer, and it serves me well.

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