Short Sale Updates With Lotus Realty Group

It has always been a goal of mine to help educate agents when dealing with short sales. Especially since I work with so many of them negotiating their transactions. A common thread I have seen is the anxiety created by giving up control of the transaction to a short sale negotiating team such as mine. Agents question what they do not know and second guess the advice given by the professionals. I have noticed for myself, painfully so; that when I am doubtful of others I am really doubting myself. Sometimes when we fall short in one area of our lives and give up control to another its normal to have fear that the job will not get done. In my experience those are just your thoughts and fears, no one else's. That doesn't make the fear true. Those thoughts are projected on to people that are really just trying to help us out. Professionals who have gotten results time and time again.

Typically when an agent sends us short sale transactions to negotiate it is because they either do not have the time or they do not have the knowledge to facilitate a short sale effectively. So I would like you to try an experiment with me. When you are in a position that you have to give up control in an area of your life that you your self cannot do alone whether it is business or personal. I want you to pay attention to your thoughts about the circumstance and the fear you are attaching too. For example; " My transaction probably wont get approved and I am waisting my time". "The short sale team is not going to make my transaction a priority". Notice how these thoughts are making you feel. Is it causing you anxiety? Are you panicking? Are you stressed out? Then ask your self " Is it true? Who would I be and how would I feel with out those thoughts?


What if you turned it around and said " The short sale team IS going to make my file a priority and it will close. I guarantee you that feels alot better. I think you will find that those thoughts have nothing to do with anyone else. You may not be an expert in short sales. You may not know how to effectively qualify your client. You may not have the time or the ability to facilitate a short sale and it is for that reason that those thoughts and fears are created. Not because you have evidence that they are true. There is nothing wrong with asking for help. There is nothing wrong with asking questions and stating your concerns and setting your expectations so the other person knows whats most important to you and will be able to help you in a way that will calm any fear you may have however; trusting the process is the ultimate goal.

Here are some issues we have seen recently and some tips to help you with future transactions

1. The HAFA relocation assistance money that is granted by a lender in a short sale transaction has a very important condition that you need to be aware of. The seller has to be out of the property at close of escrow in order to receive those funds. If a seller is in contract and has started the short sale process I would make sure they understand they should start searching for a place to live sooner rather than later. Waiting to the last minute will put them at risk of losing their relocation assistance and put you at risk of losing the deal.

2. If you started a short sale and it was pre qualified for HAFA per the negotiator but you do not get a HAFA approval it is because the negotiator has to send the file to the investor for final approval. The investor has the final say whether or not they will participate. Again, this is another circumstance where you need to be able to set that expectation with your client. Don't give them false hopes.

3. Please keep in mind that when your seller decides to call their lender to check on their short sale status they are talking to random customer care representatives on the other end and they give your clients hopes that they can qualify for certain programs. We should be advising clients that are considering to short sale to call their lender FIRST and explore all their options upfront. A short sale should be last on the bucket list.

4. Please check all documents , especially closing documents to make sure you have signed your portions whether you are escrow, buyers or listing agents. You will run the risk of wires getting sent back. We are ALL responsible to make sure this gets done.


I truly hope you find this information useful. Please feel free to contact me with any questions, concerns or short sale scenarios. Thank you for your continued support.


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...