First - the pricing of the home needs to be realistic and not what the seller believes the home is worth because of their emotional attachment to it. The home must be priced based on AS IS value so an offer is received within 30 days.
Second - Also during that 30 day period, all of the hardship case must be documented for inclusion in the short sale file so there is no delay waiting to draft the hardship letter..(drafting the letter in the right verbiage with specific details is critical for short sale approval success...) also have all Federal Tax returns for past 2 years on hand for the file. Do NOT spend time getting bank & salary statements until you receive a purchase offer...most times the lender will only want the 2 most recent for each so it's better to wait until an offer comes in so you don't repeat bog down the seller again by repeating this step...
Third - once all short sale docs are prepared and submitted to the lender, YOU must call weekly to follow up to make sure the file is not lost, forgotten, or the lender agent's dog didn't eat the file.
Calling to check on the status should not take more than 10 minutes...if it does, draft multiple faxes explain the concern for the delay and send not only to the file case worker, but to the executive office that oversees that loss mitigation department IF you are still not getting a response. Trust me - escalation will work. Short sales can be completed successfully most times...but it takes commitment to follow up during the process...and not be afraid to make a good case to the lender.
Tom Hinz http://www.shortsaletosell.com
As for moving it along . . . . HAH! good question. Been in a short sale purchase myself since August, 2012 and still waiting. Outside of beating up some bank employee after hours in the parking lot, I'd say NOT!
Francesca Patrizio, ePro, SRES
If there has been an offer submitted to the bank for a short sale and the bank comes back with a number.. And the buyer does not move to that number.. That number now becomes the list price as a bank acceptable number for the property.
So it depends on what has been happening in the short sale process if it is new or has been out there with offers.
Moving it along? That is why people need to work with agents that are familiar and have closed short sale transactions. In todayâ€™s world it seems like every agent claims to "do" short sales.. baloney. "doing" a short sale does not mean sending it to an attorney and waiting for the attorney to get around to calling the banks, wasting two three weeks in "attorney review" for something that may not be accepted. Having people do costly inspections..When the bank may not even answer the package!
Due diligence. In your offer, your agent and your attorney.
FYI- (short sale "packages" are available to you from your bank, for free)
The listed price of the short sale is most often determined by the listing agent and the seller. The process can take some time and be frustrating. The biggest was to move it along, is to get whatever paperwork the bank is asking for back to them asap. Good luck to you and if you have any additional questions feel free to ask.
Most Realtor's will list a property near its fair market value depending on its condition, unless the Realtor contacted the lender prior to listing to get a short sale approval. Bank of America and FHA have just recently started to pre-approve properties for a short sale and sets the listing price. The only way to find out is to have your Realtor speak to the person who is negotiating the sale on behalf of the owner. Usually it is the sellers Realtor, sometimes their attorney or a third party like ourselves who will negotiate it for all parties.
The thing about short sales (until just very recently) the bank will only entertain a short sale if there is an offer made on the property, receive all the sellers SS package information and determine if they qualify for a SS/Modification/Hamp/HAFA etc, Then it will verify the buyers information, mortgage commitment, proof of funds, arms length transaction, then and only then will it order a BPO (broker price opinion) or an appraisal. Traditionally the paperwork submission by the selling realtor and review of the file is what takes the longest. Once the selling bank has its appraisal or BPO they will either decline/counter or approve your offer.
If you made a fair offer based on real comps of the area and condition of the house they should approve the offer. Most buyers think that b/c a house is a short sale it is automatically worth 40-50% of fair market value and that the bank will give it away which only works in very small instances.
The good news is as of November 1st all SS are supposed to be reviewed/approved/countered within 30 days of submission
Albatross Property Solutions LLC
Short Sale Paperwork Processing and short sale negotiations.
We do short sale paperwork processing building the entire short sale package ready for bank submission for $29.95 call for details mention Trulia get the first package for half price!
Ask for weekly updates. The process is slow... But asking for details of the process is a way to get a commitment from the selling agent and the bank. Ask specific question not general questions...
Does the bank have all the sellers paperwork in their hands?
Has a negotiator been assigned?
Has the bank done the appraisal or BPO?
Each bank has different requirements. Such as Wells Fargo will want affidavit signed before they make a decision signed by buyer seller agents and title agents.
So if the seller's bank is Wells Fargo you may want to ask about the affidavit...
Also if there are 2 banks the 2nd will be negotiated first. Then the 1st mortgage will approve ... You may want to ask has the 2nd approved the process yet? and Why not? What is holding the process up specifically?
Your agent should be knowledgeable in the processes and they should have all the questions and answers.
Search foreclosures and short sale here: http://www.BuyNJShortSales.com
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Larry Sarlo When you want it Sold Fast!
609-868-1171 call / text / email 7 days
415 Egg Harbor Rd st 9 Turnersville, NJ 08080