Back to Basics..Short Sales 101..

(Quote) We just have to keep working and keep trying to do
 the basics and hopefully a win will come. "Terrence Duffin"

There are moments in life in any profession you are in whether you are a Realtor, Doctor, Lawyer or a checker at a grocery store; work begins to look like a mountain to climb with requests and demands and unrealistic expectations. Its easy to lose your footing and at any moment it can feel like the walls are going to cave in. We can lose sight of the goal and ask ourselves "Are we going to blow it? Well, blowing it is not in my vocabulary and I have a feeling neither is it in yours. So what is the solution?


I have learned when transactions are on shaky ground one of two things have occurred; a) either something was overlooked or b) something was over promised and under delivered. I understand that we can get extremely busy and in our industry time is money and things do move quite fast however; I would like you to consider that those two issues I have just mentioned have the capability of ruining a reputation, waisting time as over promising and undelivered means we did not get the outcome we desired therefore losing time, money and a returning client which could have been a future revenue stream.

Lets talk about overlooking documents. In a short sale transaction the bank is looking for accuracy and consistency. One thing I have seen as agents send over files is missing signatures on contracts and disclosures. No holes is the object of the game. The more solid my short sale package is the better chances I will have less requests for revisions from the bank. Here is the top issue and tip to help you in the future:


Double check all contracts. If the home is being purchased by an LLC or an S Corp you will need articles of incorporation and an operating agreement. All the names have to exactly match the RPA contract. The names on the proof of funds and pre approvals have to match as well.


Remember to utilize the checklists I have created to ensure you do not miss anything in the short sale package that the bank will request. They really do work if they are used properly.


In regards to over promising please understand that if you promise your clients the moon and the stars and cannot deliver at the end of the day you will only disappoint them and lose their business. For example, we have had agents tell their clients that they will be able to get the short sale complete by the end of the year before the tax law expires in order to get the listing. That is a huge problem waiting to happen as there are never guarantees in promises like this with all of the unexpected issues that happen in these transactions which can lead to unexpected results. I know you want the listing but your clients need the truth not what they want to hear.


A better response would be; I understand Mr. and Mrs. Seller that the tax debt relief would be a huge benefit for you and your family however we are not positive that the law will be extended into the next year and with the expiration approaching I can tell you that we have a good track record of getting approvals faster than most other companies out there but I will not guarantee you something that may or may not happen. Approval is inevitable however I cannot promise you it will be done by the end of the year and anyone who tells you they can will be lying. What I can promise you is we will do our absolute best and hopefully we will get the extension into 2013. Who knows if they will even benefit from the Mortgage Debt Relief Act? Advise them to speak with a CPA. This will allow you to gain their trust and respect but most importantly, keep it.


Back to Basics means to go back to the beginning and do what works. Here are a few examples:


1. Pre qualify - Utilize the listing agent short sale package and checklists I have created to allow you to ask the right questions to determine if they will qualify.


2. Set proper expectations and time frames


3. Advise your clients to speak with a Real Estate Attorney and a CPA.


Its all about strategy in the short sale game. If you have no strategy you simply have no game.


Lotus Realty Group is here to assist you in the whole process from A-Z. The system works if you work it. Please reach out for any questions that you have and allow us the opportunity to turn your mountains into paths of opportunity.


Extra Tip

Regardless of what Bank it is; if it is a HAFA short sale transaction the ARASS ( Breakdown of all the fees) will include a document to ensure this is a non-arms length transaction. In addition, it will include a NO FLIP 90 day rule.


Reminder that we are having our Holiday party December 6th between 5:00-7:00 pm at 400 S Sierra Ave Suite 102 Solana Beach Ca 92075. Please RSVP to Sarah@LotusRealtyGroup.com.

Real Estate Attorney David Bright will be there do discuss short sales, legal updates and our upcoming seminar we will be offering to agents. Short sale certification and 12 hours of DRE credits will be provided with the completion of the 2 day course. Hope to see you there at the party.



REALTORS, what is in your business plan this year? What are you doing to create a system that will allow you to build your short sale business? How often are you out there prospecting and how do you know if you are taking the listings that are going to be successful and not a waste of your 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...