Communication/Time Frames
1.
When your file is submitted to Lotus Realty
Group one of our representatives will do an audit of your file and send you a
needs list of all outstanding documents. We will not submit a short sale package
to the lender until we have a whole and complete short sale package. We
understand these transactions are time sensitive.
2.
If you are unavailable or will be out of town we
will need the information of who will be assisting you with this so we can work
with them on getting what we need to submit a package.
3.
Lotus Realty Group will update you weekly every
Thursday. If there is any information or requested documents from the bank we
will contact you sooner. Please allow us to work with the bank and adhere to
the time frames.
4.
Every transaction is different and unique. Some
approvals come faster than others however; the more solid of a package we have
the faster we will move through the system.
5.
Fannie Mae and Freddie Mac deals take longer to
underwrite so you will want to set expectation with seller and buyer.
6.
From the time of submission it can take anywhere
from 30-90 days before we may see an approval. The bank typically looks at how
many days the property was on the market to see if the property was marketed
for a substantial amount of time, comparative market analysis, the value of the
offer, what is owed on the property and how strong the hardship is. We suggest
that you complete the listing agent packet with the seller questionnaire before
listing the property and discuss with a representative at Lotus Realty Group so
we can determine together if this is a deal you should take or what we need to
do in order to structure it properly.
Commission
1.
The seller and listing agent cannot be one in
the same.
2.
Listing agent cannot be related to the seller or
the buyer.
3.
If the buyer’s agent is also the buyer, the
short sale lender may reduce your commission or they may decide to eliminate
your commission all together.
4.
If the agent is representing both buyer and
seller the short sale lender may reduce your commission
.
Contracts
1.
It is imperative whenever possible to use our counter
and addendum in the listing agent short sale packet for all potential buyers on
your short sale listings. This will set expectations as to who will be
responsible to pay fees that the short sale lender will not agree to pay.
2.
The SSA needs to be initialed and signed by BOTH
buyer and seller.
3.
All items incorporated into the RPA on page 4,
need to accompany the offer as the bank will require these.
4.
Not all lenders accept Doc U Sign. It is a
suggestion to get wet signatures up front to save time.
5.
If the buyer is an LLC or incorporated, we will
need the Articles of Incorporation and Operating Agreement. The signatures on the RPA need to match the
LLC or incorporated documents.
6.
Cash buyer proof of funds need to be within 30
days.
Sale Dates
Most lenders require a full short sale package to be
submitted 15 days prior to a sale date to consider a postponement. If there is a sale date on the property in
two weeks and we do not have a short sale package in place with an offer we
will not be able to take this type of transaction. There may be exceptions granted however; we
generally do not take these circumstances on due to the success rate being extremely
low. If the listing agent packet is complete and we have had a chance to go
over the seller questionnaire together to determine if this is a transaction we
can successfully close we will eliminate most if not all of these issues.
