Streamlined short sales.. Is it really happening??

REALTORS, financial institutions have worked hard to create a system that will help streamline the short sale process. I just spoke with a GMAC negotiator who says they have cut the time it would normally take for a short sale transaction by more than half. In the past an average short sale would take 4-6 months. Moving forward we will see closings within 2 months of submitting a short sale package. Bank of America, Wells Fargo and Wachovia are also creating programs to stream line the process. I have been reflecting on all of the short sale transactions we at Lotus Realty Group have closed in 2010 and the 1st quarter of this year and the progress we have made in our systems and organization as well. These improvements have enabled us to close deals more effectively and efficiently with the financial institutions. It has also allowed us to help REALTORS grow their businesses by expediting their short sales and freeing them up to do what they do best, PROSPECTING!!



Experience has taught me that no matter how streamlined the financial institutions are in processing short sales if we have not put the deal together properly with qualified party’s involved in the transaction we will be self-defeating and not get the results we desire.



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. (Pre-qualify, pre-qualify, pre-qualify)



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 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. I want all of us to be successful working together moving forward this year.



All short sales have obstacles to closing, some that are out of our control, but mostly ones we can control. For the last two years 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 sale transactions:



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 reviewed 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 and work in harmony with the financial institutions to steamline this process.







EXTRA TIPS FOR THE MONTH:


1. Some banks 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 banks are upfront. Once you know this call me and I will let you know what that particular bank 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. I know a lot of you are use to using electronic signatures. Most banks REQUIRE wet signatures. They ask for it at the end so let’s be ahead of the game and get them upfront.


Quote: An empowered organization is one which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success."


Stephan R. Covey

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...

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