Short Sale Parameters

I have been asked recently by several Realtors questions in regards to taking on the right short sale listings. Below you will find a list of parameters I compiled awhile back. I hope you find this helpful. Though short sales have slowed down they are still a part of our market and knowing the right ones to take on will save you alot of time and energy. Please let me know if you any questions.

Parameters for a successful short sale transaction



 

** Help to guarantee a quick and successful short sale by implementing these guidelines**

**Foreclosure Radar is a great source to prospect homeowners defaulting on their mortgage**
Go to www.ForeclosureRadar.com

1. First, if there is a sale date on the property, it should be a month or more in the future.

2. Since you have the ability to choose through foreclosure radar I would stay within loan amounts $450,000 and above

3. Maximum of two liens on the property

4. The property must be in a marketable area

5. Seller Questionnaire must be used to determine if you have a pre-qualified short sale

6. There must be a notable hardship: ( See the following examples)

a) Change in income/loss of job

b) Divorce

c) Relocation

d) Death

e) Insurmountable damages to the property

f) Client is still current but living off their savings. They will not be able to maintain payments much longer. The client sees a train wreck coming and is preparing to stop the bleeding now before they face foreclosure.

g) Expenses exceed their income. They are either negative monthly or it’s a wash.

h) If it is an investment property; negative rents, unable to find renters and the properties remain vacant and the investor is unable to carry a negative property would be grounds for a hardship.

7. Advise clients to speak to a Real Estate attorney and CPA


8. Clients must be cooperative and realistic.


9. Property should be marketed for a substantial amount of time.


10. You must have a complete Listing Agent packet and Homeowner packet submitted to Lotus Realty Group with all applicable documents in a reasonable time frame.


Call Lotus Realty Group for a copy of the Listing Agent packet to assist you in pre-qualifying your short sale client and gathering the appropriate documents.


I suggest this gets done first and sent over to us at Lotus Realty Group so we can assist you with any additional information or financial packets for your homeowner to fill out. This depends on who the lender is. If I know up front all the pertinent information I will be able to save your client from filling out redundant paperwork.


Please contact us for further information. The goal is to get all the important information upfront in order to successfully structure the transaction, minimize any pitfalls that may occur and have a tight stream lined systematic approach to ensure we close in a controlled and timely manner.


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