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Real Estate Marketing "The Podcast" How do I get listings or deals? #Investor #Realtor

David Bartels LIVE from Anaheim CA presentation

805-413-8000
http://www.homeloanadvocates.com/

Banks grant short sales for two reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.

The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines, but the basic procedure is similar from bank to bank.

A few examples of a hardship are:
Unemployment / reduced income
Divorce
Medical emergency
Job transfer out of town
Bankruptcy
Death

The seller’s short sale package will most likely consist of:
Letter of authorization, which lets your agent speak to the bank.
HUD-1 or preliminary net sheet
Completed financial statement
Seller’s hardship letter
2 years of tax returns
2 years of W-2s
Recent payroll stubs
Last 2 months of bank statements
Comparative market analysis or list of recent comparable sales

Writing the Short Sale Offer and Submitting to the Bank

Before a buyer writes a short sale offer, a buyer should ask his or her agent for a list of comparable sales.

Banks are not in the business of giving away a home at rock-bottom pricing. The bank will want to receive somewhat close to market value.

The short sale price may have little bearing on market value and may, in fact, be priced below the comparable sales to encourage multiple offers.

After the seller accepts the offer, the listing agent will send the following items to the bank:
Listing agreement
Executed purchase offer
Buyer’s pre-approval or proof of funds letter and copy of earnest money check
Seller’s short sale package.

The Short Sale Process at the Bank

Buyers may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process.

Buyers may get so tired of waiting for short sale approval that they may feel the need to threaten to cancel if they don’t get an answer within a specified time period.

That type of attitude is self-defeating and will not speed up the short sale process. If buyers are the type with little patience, perhaps a short sale is not for them.

Following is a typical short sale process at the bank:
Bank acknowledges receipt of the file.
A negotiator is assigned.
The bank orders a valuation of the property.
The file is sent for review or to the investor.
The bank may then request that all parties sign an Arms-Length Affidavit.
The bank issues a short sale approval letter.

Some short sales get approval in 3 weeks. Others can take as long as 12 months. A typical Short Sale transaction takes 4-6 months to complete.

Short Sale Sellers; Check your Listing Agents' References! 

Had a listing appointment last week with a potential Short Sale Seller.  He is only 30 days delinquent and his property is spectacular..truly stunning.  The Location is very questionable for a home of this magnitude and that's where he, being the Architect, may have gone wrong.   But..Mr. Seller is very bright, very successful, and well-versed in the world of the Short Sale.

Because there are two loans with two Lenders and a huge amount of money to forgive, this one is going to be a trick..but I think because of the location and the loss of Income here, it should get approved. 

I spent quite a bit of time with my Seller.  We went over comps, we went over loans, we went over Lenders, we went over documentation required and then he asked me for four recent references.  Bless him!!  I had them, gave him the names/e-mails and left feeling pretty confident.  I knew that I was just one of several interviewees, and being a Realist, I know nothing is a slam dunk, but I was hopeful.

Three days later, he called.

"I did contact your references and they were very complimentary of your and your Short Sale knowledge and services.  I definately want to list with YOU!"

I am thrilled, but I also feel even more confident.  I now know that my Seller truly does believe I know my business, and will help me even quicker with anything I should ask him for.  Hopefully, we can make this difficult transaction as smooth as possible.  I'm also very impressed with Mr. Seller.  He actually followed up with my Short Sale references and called them!

Short Sales are not Standard Sales and do not fit into just any old Realtors Agenda.  Find out how many Short Sales your potential List Agent has listed, contingent, pending and CLOSED over the past few months..several years is even better.  All the Certifications in the world do NOT compare to SHORT SALE experience.  Find out if your List Agent is up to the job.

Short Sale Not Closing, Is it possible to list it as  REO ? and if so what are the set necessary?