Organization is important in a short sale transaction.
I can’t juggle. Well, maybe I can if throwing two tennis balls up in the air counts as juggling. So, in a physical sense I can manage the two tennis balls. But, with regard to short sales and the short sale transaction, there is quite a bit more to juggle then just two tennis balls.
First off, you need to be able to coordinate the preparation of the short sale package. You need to assure that the seller has presented you with the latest pay stubs, tax returns and bank statements. You need to assure that the seller has a verifiable hardship and that this hardship has been explained in the seller’s hardship letter.
Next, you need to be able to manage the banks—to juggle the phone calls with lien holders and assure that everything is moving along quickly and efficiently.
You also need to be able to manage the buyer, the buyer’s agent and any prospective back-up buyers. That’s a lot more than many of us are accustomed to managing, and much more than we managed in real estate transactions from the days of yore (read: 2006).
Lastly, we need to be up to date on all of the latest news and government policies with regard to short sales. There’s the Mortgage Debt Relief Act of 2007; there’s HAFA; there are also Fannie Mae and Freddie Mac. In addition, each and every lien holder has its own submission policies and procedures for short sales.
That’s a lot more than two tennis balls, isn’t it?
Short Sale Preparation Homework Assignment
So, here is what you need to do: you need to take a breath, slow down, and make a list. First, make a list of all of the items you will need to collect from your seller. Make a list of all of the documents that you will need your seller to sign. Make a list of all of the questions that you will need to ask your seller and all of the due diligence activities that you will need to complete prior to the listing appointment.
Then, make another list, chart, or communication record for dealing with the banks. And, make a third list for the buyer’s agent. Include in this list all of the items that you may need to include in your counter offer as well as any information that you will need to collect from the buyer for the short sale lender. (For example, the Equator system requires some specific information about the buyer. And, most lien holders would like to see a pre-approval letter from the buyer and/or proof of funds.)
I can pretty much guarantee that if you make these lists (do this homework) that it will help you to master the short sale transaction and make the whole process move along more quickly and efficiently for all parties. It will be just like juggling six tennis balls, and not dropping a single one.