What to do before you take the Short Sale listing

Yesterday, I was at the Maple & Herndon office & listened to a presentation from Short Sale Advantage (SSA) an affiliated company with Placer Title. The title of the presentation was:

What to do before you take the short sale listing

These are my abbreviated notes captured on a really great, FREE tool called Evernote on my iPhone. If you'd like more details, feel free to write me andy@guarantee.com

1 financial hardship qualified (documentable distress)

- lost job, income decreased, divorce or death

2 determine what their goals are

- must they move? all efforts must be exhausted

- give them Fannie Mae guidelines- can they qualify for a loan mod?

- explore loan modification options with them & their lender BEFORE listing the property . . . otherwise you may stall your efforts later

3 documents & paperwork (loss mitigation package) Here's a few links for you on packages to use: Communication Docs Short Sale Packages

4 address potential obstacles (other liens, distress on title)

5 know your lenders

- bofa taking long, Fannie Mae backed bofa is taking as long as 6 months

- hard money lenders are nearly impossible to negotiate

- private 2nd's are also very difficult to impossible (mechanic's liens)

- wachovia is the best to deal with

Misc points

- if you double end, even guarantee to guarantee, they may discount

-tell sellers, this is not a free ride, don't go on vacation, or spend a bunch of $$

-be prepared to have a request for a note from the lender

-don't ever tell a seller "you have a non-recourse loan" if they have a HELOC