Top Ten Blunders When You are Not On Top of Your Short Sale File

By: WHBSolutions

In a typically Real Estate transaction, financing a home is usually a cause for a deal to fall through. When your deal is also dependent on a lender short sale approval, you had better spend all the time that is required to stay on top of your short sale file or watch your deal slip away. The following mistakes provide examples of what can happen when you do not stay on top of your file and risk losing your transaction.

1) You do not review all the details of the documents that you submitted and realize that the all the documents required by the lender has not been received. No negotiator is assigned to the file and sits in a basket which eventually gets thrown out. Make sure to call the lender each time you submit a short sale packet as there may have been some changes to the required forms needed by the lender.

2) You fax documents to fax number or wrong fax number and do not call until a few days later to see if it has been received. You’ve lost a few days here and time is precious when working on a short sale file. Make sure to call the lender to verify they have received your document the next day.

3) The lender calls you at a number you provided but you do not respond until a few days later. Once again, you’ve lost a few days and you need as much time as you can to close the deal. Make sure you provide a number that you always answer and respond quickly as the lender is it is not always easy to get a hold of the lender.

4) The lender sends you emails in need of additional information. You do not notice the emails because they are sent to your Junk Mail folder. Make sure to check your Junk Mail folders just in case this happens. Once you get the lenders email address, add them to your address book and make sure they are not automatically sent to your Junk Mail folder.

5) The homeowner gets a document from a second lien holder stating they are accelerating their payments and will be forced to take further action, but this letter never catches your attention. Make sure to have the homeowner forward you all documentation that is sent to them from a mortgage lender. In the example above, the second lien holder just needed to be notified that a short sale was in progress and they stopped sending threatening letters.

6) No call is made to the lender for a status updates as you are assuming they are reviewing your file and everything is going well. Do not be surprised if a lender needed additional information from you but did not yet make the time to notify you. Make sure you call the lender a couple times per week to check on the status of your file. You won’t be caught off guard with any surprises.

7) A buyers decides to purchase another property but does not tell the buying agent, therefore you are not notified. Time is spent on getting an approval and you have not lined up another buyer. Make sure you always have additional buyers lined up and check in with the buying agent to make sure their buyer is still interested. If you have to go to a different buyer and the price changes, you will need to send that to the bank immediately as it will affect the decision of your short sale file.

8) Sales have continued to drop but you do not track this trend and it is not communicated to the lender. This is a big mistake as it is additional proof that the offer you had submitted is now higher than other comparable properties. Make sure to notify the lender of any property changes as it may push them to make a faster decision.

9) A homeowner is discouraged because the short sale process has taken so long. Friends that are in the same situation talks them to go through bankruptcy as a solution. You are not notified and time is wasted on the transaction as the bankruptcy has been filed and now the short sale needs to be approved by the court. Make sure you are in close communication with the buyer and if they do try another alternative you can save your time by stopping all work on the short sale file.

10) A short sale is approved, yet to find out the buyer has not yet talked to a mortgage professional about getting qualified. The deal falls through because the buyer cannot obtain the financing required to close the deal. Make sure that the buyer gets pre-qualified for a loan during the short sale negotiations, and if possible, have them provide a pre-qualification letter to you so that it can be sent to the lender. This helps the lender with their decision as they feel more confident that the deal can close.

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WHB Solutions is dedicated to teaching both investors and real estate agents how to properly do short sales. Having a winning home buyer solution is critical to short sale success and short sale education! Visit our site now for a free report on getting short sales approved!

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