Curious how much time you spend working a short sale once you get an accepted offer?

How much time:

  • To gather intial documents from seller and buyers agent
  • To assemble short sale package and send (fax or email) to lender
  • To upload all required docs is short sale is in Equator
  • To do regular follow up, how many times per week, how long on phone or sending email
  • To counter offer or accept short sale
  • To escalate if needed
  • To gather all documents for closing
  • To get HUD approval and upload approved documents if in equator?

I ask this because I occasionally get a request to let someone else process my short sales because of the HUGE advantage that I will get by saving so much time, time that I can use to get more listings and work more buyers.

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I guess I spend about 30 minutes per week per file unless I have something out of the ordinary going on. I can handle about 35 files without too much of an issue and I handle ALL of it. The most time is spent at time of listing during document collection. I follow up with the lenders once a week and mostly by email if able. My sellers are updated simple by copying them on all correspondence. I update the buyers side once a week via email.

Short sales are nothing more than a process.

Thanks Bryant.

I tend to spend the majority of the time collecting and organizing the documents and putting together a complete and organized short sale package. From there I might spend a few minutes a week on each file sending emails for updates and giving updates and rarely every have to make phone calls to the lenders.

Ok based on Bryant’s number, if I have 20 short sale files, I’m looking at least 10 hrs a week.  I think what Harry said in the previous post is essentially the truth.  If you are more interested in quality, and less sales, you aren’t looking to outsource. (LOL - *I* Bring the QUALITY to the table)  I work with an agent that has 35 listings and 22 of them are short sales. 

I can tell you a single call to Ocwen or Chase is at least an 8-10 minute experience.  Now if you have to do that 2-3 times a week to get answers on 20 files, you may be looking to outsource. There are certain lenders you can't just email a negotiator.

That is just the basics with one lien holder.  Now take that and add two or three lien holders for one file and then 2-3 separate HUDS for each lien holder, calculating, pulling comps, calling towns for utility payoffs, taxes, researching the registry to see if there is anything you’ve missed, scheduling BPO’s, contacting title companies, coordinating closings, and this is all if this is a good old normal transaction.

Let’s add in the fact that you may hit a snag and may have to write a letter to an attorney, lender executive office, senator, government official, regarding an injustice with the file, OR trying to track down the investor of the file and contacting someone in that office.

Again, all the above is workable if you only have a few files.  If you’re agent with a large volume, this may not be the best use of your time. 

Smitty. If I ever reach the point where I can't do it myself the first thing I would do is hire a virtual assistance to do the paperwork. I handle short sales completely because I enjoy it. I don't work with buyers (I have buyers agents) and I rarely meet with sellers. Most of my listings are taken via email. I hire runners to do photos and set up lock boxes (or the seller does it for me).

Currently I have 30 short sale listings either active or pending. I work from home and go to my office by 6am. I never work past 5, go to the gym 3 days a week (during work hours), cook lunch and eat with my wife everyday. I don't work on Saturdays and Sundays except for a couple of hours early in the morning to tidy up emails.

My title company handles my searches and my HUDs. I don't use multiple HUDs. I don't attend closings.

I communicate with my sellers via email and text and rarely speak on the phone with them after the initial consultation. However I communicate with them several times a week.

BPOs are scheduled through my showing service and prior to them going in the property I email them all of the comps, pictures, repair estimates and justification for the purchase price.

I also handle all of my own websites including this one :)

I'm a finely tuned machine!!

 

YES YOU ARE!

I think what you're doing AND outsourcing, we as a 3rd party bring to the table.  If you love short sales and like what you're doing, and it's obvious the above works for you, then why would you switch?  You wouldn't.  3rd parties don't work for everyone, but for a good majority that utlize us,  the resounding reason I've "heard" from others is the amount of time it saves them.  I realize there is an overall dislike of 3rd party negotiators, but you know that I have to champion my own cause because *I KNOW* I'm one of the good ones.  I TRY not to throw a net to generalize a whole group of people, but for me, when you are on the receiving end of it many times within my own community of peers, it's a challenge most days.

Dusting off this thread:

So yesterday, I spent 5 hours working on one sale.  Up until yesterday I spent 1.5 hours on this sale.  That was spent on going over the process with the seller, reviewing outcomes of the short sale, finding out the hardship, explaining the process, giving lawyer and accountant information, answering questions, collecting homeowner contact info, negotiating agreement/disclosures, starting a folder for the sale, sending list agent buyer agent disclosures and instructions on our negotiation process, inputting homeowner info into my software, advising homeowner how to rewrite hardship, pulling title, and collecting and separating paperwork and creating pdfs.

THEN YESTERDAY my time from 8-1 was initiating RUSH sale in equator, tweeting for help, faxing stay of foreclosure to my states office asking for assistance, collecting buyer info and inputting it into my software including buyer's agent info, faxing in LOA to foreclosure dept at BOA, Faxing in QWR to get investor info, pulling comps for BPO package, pulling bankruptcy discharge, uploading files into Equator as assigned tasks came in, answering the phone from the negotiator telling me the homeowner qualifed for HAFA and he needed a response, coordinating with contact at BOA regarding the submission, putting together the BPO packet with pictures of the home, a cover page (with pict, property address and auction date), hardship, bankruptcy report, foreclosure report, CMA, etc.  Pulled a few comps to verify CMA accuracy. Generating the HUDS and calculating commission, attorney fees, settlement costs, calling town to find out outstanding municipal liens, taxes, etc, starting second CITI folder for second lien and putting together CITI short sale packet with cover page, itemized list of corresponding paperwork, uploading and faxing out package from my software, emailing buyer's agent, listing agent letting them know status of file and auction.  Sending out BPO instructions to list agent and letting her know file was immediately assigned and BPO ordered.

 

So, I just STARTED this sale and am 7.5 hours in.  Now this is the bulk of the work.  I may work on this file .45 minutes/week going forward IF there was only one lien but because there are two liens and I have to call into CITI and knowing what a nightmare that could be I would say that I'm looking at a minimum of 1 hour a week going forward.  Going forward I have to coordinate with title attorney/company, make sure mortgage commitment deadline is met. I also call or contact every 3-4 days all parties involved, however, because there is an auction, I will communicate on this file daily until I know sale is postponed, at which time I confirm with foreclosure department and call trustee.  Also, the more liens a property has, the more time you spend on a file.  That 1 hour doesn't take into account any time paperwork may be requested and I need to get it from homeowner.  Some homeowners don't have faxes and I either drive and meet them or they snail mail and I'm in scanning for 20 minutes in my office. 

 

 

xx

I list, work and close my own Short Sales here in the Palm Springs area.  I don't do the numbers Bryant does..maybe 20 a year.  It's a % of my income.  I still work with Buyers and Equity Sellers.  I find my Short Sales supplement my income and keep me on my toes about the industry.  I too enjoy the follow up and co-ordination required.  The most time is at Listing and document collection.  Follow up is weekly and updates also.  It's a system.  I do not use 3rd party.  My Listing, my responsibility.

Kimberley. You know folks always assume that about me. It's not true though. I'm a small time broker in a small time market just doing my best. Plus I'm lazy. Last year we closed 75 transaction sides. That's for me and my 2 buyer agents. 50 were mine. Out of those 30 were short sales that I negotiated and closed.

I'd much rather teach you guys than work :)

Maybe the trick is that 6 am at the office that Bryant does -- yuck!

Hey I have to be at the gym at 11. I have to start early. Then of course I have to make lunch for the lovely wife. And take my afternoon nap. There are advantages to being old :)

And, what you're saying, without saying, is that you have a system!!

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