10 Most Common Short Sale Mistakes And

How to Avoid Them

1. Not Qualifying the Seller
   • Their financial situation (current assets etc)
   • Hardship (will give clues to how you will get approval)
   • Type of mortgage
   • If it’s FHA loan and other types, can try to get pre-approved
   • Is Fannie or Freddie?
2. Not preparing the seller for cash contribution and/or promissory note (part of #1 but so important!)
3. Not doing preliminary title search
4. Not controlling the list price and subsequent price reductions
5. Advising your seller to accept an offer that is too low
6. Not controlling the terms of contract – buyer end, short sale approval time frame, deposit upon seller acceptance (not short sale approval)
7. Submitting an offer or multiple offers to the lender. Instead of one fully accepted and signed contract.
8. Not working multiple liens simultaneously
9. Not reviewing seller’s documents before sending to lender
   1. Common financial worksheet mistakes
      1. Seller does not add the figures correctly
      2. Seller leaves out expenses
      3. Seller forgets about mortgage payment he is not making
   2. Common package mistakes
      1. Leaving out documents, not labeling blank pages
      2. Not having exactly the same on all documents and as they are on the loan
      3. Common hardship letter mistakes
      4. Not providing supplemental hardship information
10. Not getting your emotions out of the transaction. Keeping your focus on the end result.