The other day an agent asked if she could have my “flight plan” to do a short sale. Per Wikipedia, a flight plan is a pilot’s outline of how he will get to his destination, including departure and arrival points, estimated time, alternate airports in case of bad weather, type of flight, etc. This agent was sure I had such a document for short sales. She had never had a short sale listing before, and was looking for a checklist.
Well, guess what? There is no “flight plan” that fits every short sale. Sure, I can tell you the basic steps, but the number of variables would throw that plan off in a heartbeat. You might be trying for Wyoming, but end up in Oregon! Here are some examples:
1. The Seller – Every seller’s situation is different. Bankruptcy? Multiple liens? No hardship? Your approach will change for each circumstance.
2. The Contract – What is the best way to write one to get approval?
3. The Package – Many short sale lenders have their own forms and different requirements. Do you know what they are?
4. The HUD - Each lender or mortgage type has unique stipulations as to what will be approved on the settlement statement.
5. The Lenders – What will the senior lien pay the junior lien, and what will the junior lien accept?
6. Other Liens – How do you handle tax liens, judgments and association liens?
7. Cash Contributions and Promissory Notes – When do they come into play?
8. The Deficiency Judgment– Do you know what it is and if your seller can avoid it?
These are just a few examples of the variables involved in getting a short sale approved. There are hundreds more. So what do you do, if you’ve never done a short sale before? One place to start is www.ShortSaleSuperstars.com– you’ll find over 5000 agents sharing information about daily short sale situations, problem solving, tips and tricks.
And for some SERIOUS SHORT SALE TRAINING – watch for the upcoming short sale webinar from me andBroker Bryant. We'll be covering not only basics, but in-depth negotiating skills, deal-saving strategies and special short sale situations. So be your own pilot to short sale success, and learn, know and grow!
Wendy Rulnick and Bryant Tutas
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