Welcome to our Short Sale Group!

Catherine:

I hear you!

Short Sales can be more work and effort but the closings are usually the best I have all month. I am closing two so far this month - one took over 5 months for approval the other only 4 days. I know another agent who just got another approved in only 9 days and another in only 23 days!

Short Sales can take longer but the tide is turning and if banks get the right information they are working with us. I use the system from Certified Distressed Property Expert Designation (CDPE).

If you want more information on the CDPE there are free calls often - sign up here!

Cadey Charfen, CDPE
Broker Associate
The Charfen Team

Catherine, Thanks for setting up this group. I am an independent Realtor in the southwest suburbs of Illinois. However, I used to live in the East Bay (Pleasant Hill). I am focusing on Short Sales and currently have 13 listings. My first two that went under contract fell through. The first one was a result of the bank taking so long to finally get a counter offer back to us which was to high. I am challenging the BPO on this one because it is clear the BPO agent did not take into account anything that I pointed out to her when she did the BPO and used properties for comps that are 2 miles away which should not have been used. The good news is that I have another offer on that property but it is a very low ball. Maybe this will get the bank to be a little more realistic. On my second listing I had an offer early on but it took me a month and a half to get the sellers to provide me with all the paperwork needed to submit the offer. By the time I got what I needed the buyer had walked. Lesson learned here is to be more forceful with the sellers about the documentation required before I take a listing.

I look forward to participating in this group. Again. Thanks for taking the initiative to set it up.

I have 30 short sale listings currently, five of them are approved to close. I have lost two so far to foreclosure. Each lender has a different process - they all want the same data - hardship letter, financial statement, bank statements, paystubs, tax returns, supporting documents - some of them want a signed purchase agreement, others don't. Unfortunately, you need to have the borrowers SS # in your file.

It's important to call them at least once a week for updates. It's also important to track the foreclosure sale date. Ask when you should call back to ask for a postponement.

They will all get you for a commission reduction. Ocwen says they will only pay 4% total. That's a lot of liability for a little money.

Alisa in Denver

I am a Realtor in Chicago. I have participated in 3 successfully closed short sales,2 as buyers agent, one as listing agent. I have lost 1 to foreclosure, am in negotiation on 1 right now, and have 2 others in the pipeline.

I had my commission reduced on 1 of the buy side ones, but the other two were what was quoted in the MLS.

-Mike in Chicago

I'm new to the group and wonder if I may ask a question. One of my listings just informed me that they will need to sell short, they have been in touch with their lender and have sent the paperwork to them that the lender requested, now the lender wants pay stubs which my client does not have, her husband has been layed off and is working when he can, mowing lawns, which is cash, they also have a disabled son who gets social security and the lender is saying they have to count that as income, my client says that is not her money but her sons. So, my question is where can we go from here, do I contact the loss mitigation dept (I do have contact info) to request that we get approval for a short sale or do we lower the price first and then try to get approval? Sorry for the long exchange, Vonya in Tennessee

Gary , wow, small world - welcome!

Alisa, Countrywide and ASC so far have not reduced my commission. Carrington tried, but , well that was a looong story that I'll write about someday! Great to see you. Like you , I have a huge book of listings now - 18 short sales.. And I have a few "regulars."

Michael, yes, I'm almost always getting agents what I quote in the MLS. A couple of times I've had to split a reduction to 5% but 2.5 % buy side commission here is commonplace, so they weren't too upset.

First, you need to have the sellers sign an authorization letter - to discuss anything with the lender.

Call them - find out what number they want you to fax it to, then do it. Call two days later and as custumer service what their process is. Every lender is different - and sometimes they change the rules!

There is a Seller Authorization form on the Colorado Real Estate commissions website http://www.dora.state.co.us/Real-estate/contracts/contracts.htm

Vonya, if there are no paystubs, there aren't. One thing I have all my clients do is to fill out a financial form. I use the one available thru HUD: http://www.hud.gov/offices/adm/hudclips/forms/files/56142.pdf

Many banks take the above form, and if they have their own form they will let you know. I just found it easier than leaving each client to provide me a financial statement in whatever format they chose.

Some banks (i.e. countrywide) will go thru their phone intake with you and ask you all the nitty gritty up front i.e. how much do they spend on gas, groceries, etc. and this form is perfect for that.

Collect bank statements (at least 2 months and keep them current), if there were any pay stubs in last 2 months, hardship letter, this financial statement form and tell them to find their tax returns for the last 2 years (not all lenders need them, but having them look now saves time later).

Hello,

What a great group idea...I'm very glad to have found you all. I have been a Realtor in Freehold, NJ for 15 years and have seen many waves in the market. Short Sales are sadly a fact we all need to deal with these days. I closed a short sale after 6 long months. I was the buyer's agent. Question....I attended a seminar that told us that the seller will not be required to pay back the "shortage" and will not be taxed on this as income at the end of the year. In my case, the bank would not agree to the short sale, even though it really wasn't very short, unless the seller signed a promisary note to pay the difference in the future. The seller, who was such a sweet person, felt that if the bank deemed this his responsibility, it in fact was and he signed the note even though he didn't know how he would afford to pay it back. As the buyer's agent, I stayed clear of this, but in the future, what has been the norm for the seller? Have the seller's been asked to pay back the difference, and if they say they can't (which I assume most can't which is why they are in this situation in the first place) does the deal fall thru?

Thanks so much!

Suzanne Kenny
ERA Advantage Realty
3338 Hwy 9 South
Freehold, NJ 07728
732-462-8600 x227
mailto:Suzanne.Kenny@ERA.com