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Asked by Sujita Kumar, Union City, CA Thu Jan 8, 2009

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6
Pacita Dimac…, Agent, Oakland, CA
Fri Jan 9, 2009
There are enough of us realtors who handle both sides of short sales. And the bottom line is that one must have a complete package when dealing with the loss mitigators from the bank. It's time consuming, but being ready and knowledgeable goes a long way.

There are expediters like Mortgage Resolutions Services and Short Sales Advantage who provide the much needed service to agents and their sellers. But many agents may not need to, if their information is complete.

First, it's necessary to establish contact with the Bank. That initial contact should contain:
1. Letter of authorization from the Seller informing bank that you are representing the seller in applying for the possible short sale.
2. Hardship letter from the Seller explaining reasons for the short sale.
3. Be prepared with documents that the bank will need from the seller: last 2 income tax returns, copies of 2 most recent bank statements and 2 most recent proof of income or source of funds, monthly financial statement showing income and expenses for the household

However, do note that most banks will not touch a file UNTIL there is an offer. And each offer must have an estimated HUD statement which the buyer's agent is requested to submit witht the offer.

If your package is incomplete, it slows down the process because then the loss mitigator will not work on it until everything is available.

If there is more than one lender, this process and package must be duplicated. And in all communications, and on every page, ALWAYS INCLUDE THE LOAN NUMBER.

If there is more than one lender, I turn to the professional expediters to handle. This is so time-consuming and may rob you of your energy.

Good luck!
1 vote
Bill Eckler, Agent, Venice, FL
Fri Jan 9, 2009
Sujita,

As you are aware the short sale process can be painfully slow. Unfortunately there are a number of reasons why this condition exists.

1. excessively large numbers of cases for banks to handle

2. complicated debt associated with the property

3. marital issues with the owners

4. Liens

A short sale could take between 3 & 6 months to conclude and an important note is that only 10% of short sale offers make it to a successful closing.

Our recommendation, for someone that is not willing to invest the time necessary with these types of transactions is to consider the "foreclosure" route. This can be much quicker and it is another opportunity for buyers to save money.

Good luck
1 vote
Pacita Dimac…, Agent, Oakland, CA
Fri Jan 9, 2009
Save the best for last :)

Take care, and have a happy and prosperous new year ;)
0 votes
Sujita Kumar, Agent, Union City, CA
Fri Jan 9, 2009
Opps! Forgot to thank Pachita.
0 votes
Dallas Texas, Agent, Dallas, TN
Fri Jan 9, 2009
I have been a listing/buyers agent for short sale Banks can take bids on short sales majority of time buyers want to low ball the offer. Research working with listing agent can assist in placing an offer. HOWEVER banks are overwhelmed with so many files it can take weeks just for a response.

Usually with short sale/ foreclosure prior to closing banks will have drama not fault of listing/buyers agent just bank . I personally dont like families purchasing short sale due to long process can take 30 - 75 days to close.

GOOD LUCK
Web Reference:  http://www.lynn911.com
0 votes
The Medford…, Agent, Fremont, CA
Fri Jan 9, 2009
Sujita:

We use a professional loss mitigator who does nothing but short sales all day long every day. They deal with all the banks and have a much higher success ratio. We don’t recommend that listing Realtors try short sales themselves.
Web Reference:  http://www.carlmedford.com
0 votes
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