Mike’s Real Estate Show

What do you need for an effective “Short-Sale” campaign? Read on! The critical item is to make sure your client’s  “hardship” package from the lender has been scrupulously filled out with ALL of their questions completed. The client should also give you authorization to deal with the lender in their name.  They then should submit it to the lender after making copies galore and also have one scanned in to reside on their desktop. You of course need the same copy on YOUR desktop.

The lender will most likely loose it, pass it to their “specialist” of the week and/or assign their case to someone brand new who won’t have a clue who your client is or what’s been done to date! You will repeat many steps over and over. You will be told everything is a go only to have an unsecured promissory note show up with the loan payoff for a percentage of the loan forgiveness which the lender will insist your client sign!! You should have all this going on BEFORE putting the property on the market. You should state this in the MLS when the property hits the market. Don’t get cute with agents and say it’s subject to “third party approval” or some such other BS statement. Tell them it’s a “Short-Sale”, subject to lender approval BUT you’ve submitted the package and are weeks into the process. This will give them a higher level of confidence in YOUR ability to get the job done!
  Too many times I’ll call an agent who says, “I’m waiting to get an offer before I do all of that stuff!” This is an idiot and should be avoided!! The question every Realtor/Licensee should be asking themselves, “Why in the world would I want to take a motivated, qualified Buyer and stick them into a vicious cycle of frustration and little reward?” YOU, as a representative of a “Short-Sale” client better have an answer to that! 
  This is not only draining to the client but also to YOU!! If you approach it systematically, and maintain an even strain, you’ll be able to close 25% to 75% of your deals. Your only issue is to get the Realtor/Licensee community to work with you on the deal!! It makes for some interesting “agency” bed partners! Here you’re trying to get your best deal for the Seller and a buyer wants to get the best deal from the Lender and you both all dealing with the final approval of the deal NOT with the Seller but with the Lender!! Oh,Brave New World!!