You may already know that short sales can be a long and involved process, and frustrating for everyone involved. The secret to eliminate many common headaches is getting the property ‘pre-approved’ for a short sale offer, while gently guiding the sellers in order to avoid potential disasters.
Would you like a quick reference for exactly what you need to get short sales pre-approved in record time? Agent Terrence Hassett explains how to do just that in three simple steps.
Here’s Terrence’s description in his own words:
“Co-op brokers are wary of short sale offerings, due to the risk of last minute fall-out or problems over commissions. By counseling your sellers to submit EARLY, you can usually get a ‘pre-approved’ short sale offering, and head off some of these problems. Here’s the best way to approach this…
A. Start by obtaining the submission package from the lender or have your own, including:
- the permission letter
- financial statement
- hardship letter, and
- pro-forma settlement statement based on an aggressive but realistic price (including your commission).
B. Counsel your sellers as to the potential problem spots up front, like:
- retirement accounts,
- transfers of assets within the last 12 months, and
- assets with equity.
C. Let sellers know that the lender will likely ask for:
- the difference in a note as a starting position, and
- require an independent BPO (Broker Price Opinion).
If you can get your short sale pre-approved, you can offer the listing with a higher probability of closing. And these three steps will put you well on your way to a complete package for an offer submission.”
