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2011-03-19 15:12:33
The Short Sale Process - A Primer for Real Estate

In this nifty roller coaster economy, the short sale process is becoming more and more common. They are nothing new in the real estate market. They used to be called 'loan workouts.' But there are still a lot of real estate professionals that are only vaguely aware of the basic steps required for the short sale process. And chances are, thanks to the aforementioned roller coaster ride, you are going to run across this situation sooner rather than later.

The basics on the process are actually pretty simple. It's the details that get a little more complex. Let's start with the easy stuff.

Step One: Get an offer. It may sound elementary, but if you already have someone lined up to buy the property at the lesser amount, you are essentially offering the lender a bird in hand--as opposed to those elusive two in the bush. Yes they will still have to think about it. A lot. But having an 'upside down' property on their books is problematic for them. This is why the short sell process is even possible.

Step Two: Prepare and submit the process package. Every lender will have a different package. Be sure to educate yourself thoroughly on what they want and all their requirements. Also, make sure the package is Perfect with a capital P. Every single document in place, every i dotted, every t crossed. This will greatly speed up the short sale process--or at least avoid hindering it at all.

Step Three: Bug the Bank. Call up the lien holder and start asking questions. Have you received the package? Are you missing any items you need to process the short sale? Has a Notice of Default been filed? Is there a scheduled foreclosure date? Can you give me some information about the short sale process and typical time frames at your bank? When will a negotiator be assigned? Has a BPO been ordered? When should I call back to check on the status of this short sale process?

Step Four: Hire a lawyer and get a forensic document audit. This should possibly be step three, but we will consider them interchangeable in order for now. This critical step can skyrocket your short sale process package to the top of the list. The lawyer will look for potential fraud, including possible TILA, RESPA and other consumer rights violations. Upwards of 80 percent of mortgages that were originated since 1999 have some type of consumer rights violations in them. Finding these means leverage in your negotiations of the short sale process. The lender does not want to go to court.

Step Five: Repeat step three and continue to bug the bank. Or let your lawyer do the bugging and negotiating. It is a fine line to walk between squeaky wheel and the annoying jerk that gets moved to the back of the line out of spite. But short sales require significant coordination and cooperation from every party. And lenders today are flooded with multiple offers on thousands of properties.

Does it really benefit you to learn and pursue the short sale process? In a word, yes... And these tips should hurry the process along. Start with excessive education about the process for the lender, team up with a lawyer to audit mortgages and help the negotiations run in your favor, and you could do quite well with this real estate niche.

 

Bear Lake Real Estate Utah Idaho

 

Source

 
Blog Archive
2013-03-11 16:50:44
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2013-01-17 11:11:39
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2013-01-17 11:07:02
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2013-01-03 12:04:44
Shadow Inventory Threat Wanes - Bear Lake Real Est

2012-12-14 16:13:21
Credit s for Lenders - Recreation Realty

2012-11-12 12:31:06
Cautious Optimistism in Real Estate - Recreation R

2012-11-07 12:24:41
Obama victory will affect Real Estate at Bear Lake

2012-09-07 11:58:06
Obama will protect the mortgage interest deduction

2012-08-31 13:35:52
Buyers Worried They're Losing Bargaining Power

2012-08-13 14:16:36
4 Reasons To Buy Now

2012-07-18 14:30:58
Inventory numbers are good news

2012-06-14 15:04:18
Another round of increased forclosure and short sa

2012-04-26 17:32:19
Increased activity and sales at Bear Lake

2012-04-24 15:03:41
Are Low Ball offers a thing of the past?

2012-04-02 16:58:37
Is a Forclosure Wave Coming this Summer?

2012-04-02 16:58:37
Is a Forclosure Wave Coming this Summer?

2012-03-23 12:30:56
Home price bottoming?

2012-03-16 13:32:09
Myths about Foreclosed homes

2012-03-12 20:18:54
Forclosure inventory is reducing

2012-03-07 12:15:04
Housing affordability at Record High....Very good

2012-03-06 13:14:58
Short Sale Questions and Answers

2012-02-13 13:17:33
Lender participation in recovery

2012-02-07 10:33:16
More Deals Falling Through

2012-01-13 11:27:18
Record low Mortgage rates

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