Recap of obstacles in a short sale transaction

REALTORS, with the holidays just around the corner and the year coming to an end, I have been reflecting on all of the short sale transactions we at Lotus Realty Group have closed this year and the progress we have made in our systems and organization. These improvements have enabled us to close deals more effectively and efficiently helping REALTORS grow their businesses by expediting their short sales and freeing them up to do what they do best, PROSPECTING!




I believe in helping homeowners in default who truly have a hardship and the only way to ensure that we are successful in doing so is to:



a) Take the right deal.



b) Have an organized, structured system in place to ensure nothing falls through the cracks.



c) Have experience with the banks and know what they want.



d) Be tenacious and follow through.



e) Be a master negotiator.



f) Have a Real Estate attorney that can educate you and keep you abreast of the ever changing legal issues.



This year has been a learning curve for all of us. Lender guidelines are constantly changing, market values are dropping rapidly and more and more homes are going into default not to mention all of the legal issues attached to short sales. As we move into the 2012, I want you all to be armed with the right tools to go out and help as many people as you can.



All short sales have obstacles to closing, some that are out of our control, but mostly ones we can control. Throughout the year I have written newsletters to assist you in a market that has become inundated with short sales. An archive of these can be found on my website at WWW.LOTUSREALTYGROUP.COM.



Here is a recap of the top 10 obstacles to closing short sales that we have learned in 2011:



1. Home owner not being qualified and expectations not being properly set.



2. Non-cooperative clients.



3. Incomplete short sale package.



4. No listing history.



5. Low ball offers.



6. Homeowners not continuing to pay the HOA throughout the short sale (I would start telling clients to continue to make their payments if they can otherwise it turns into another lien we have to negotiate.)



7. Buyer's lenders not cooperating and forcing us to file unnecessary extensions and putting us at risk of losing approvals.



8. Sellers not forwarding updated financials on a monthly basis for us to send to their lender.



9. Preliminary reports and statements of information not being looked at for other liens attached to the property.



10. REALTORS...DON'T TAKE A LISTING THAT HAS A SALE DATE IN TWO WEEKS.



I believe if we can pay extra attention to these obstacles and do our best to handle these issues up front we will save time, money and be much more effective and efficient together.



EXTRA TIPS FOR THE MONTH:



1. Some lenders have their own short sale financial packets that they require to be filled out. I have had several homeowners frustrated because they feel they are filling paperwork out twice. It would be helpful to know who the lenders are upfront. Once you know this call me and I will let you know what that particular lender will require. It will save a lot of time and effort on your seller's part if we can get them the right paperwork from the beginning.



2. Chase will be switching to Equator mid 2012..



3. Foreclosure filings are on the rise and there are going to be many opportunities for you to help someone in this situation ( See attached article on CNNMoney) http://money.cnn.com/2011/11/17/real_estate/home_foreclosures/index.htm




(Quote) Unless someone like you cares a whole awful lot, nothing is going to get better. It's not. ~Dr. Seuss


We at Lotus Realty Group want to thank all of you who out source your short sales to us. We truly enjoy working with all of you and guiding you and your clients through this frustrating time.




Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.



LOTUS REALTY GROUP



PROFESSIONAL SHORT SALE NEGOTIATORS



At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...

Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com