Tips for a Smooth Short Sale: Get Your Ducks In a Row

While the typical short sale is not smooth by any means, there are things that sellers can do to keep the surprises and frustrations to a minimum.

​The length of time to complete a short sale seems to drag on, but there ARE things you can do to move things along. Prolonging the approval process (and staying in your home as long as possible) may be your goal, but if you've already missed payments and are in the foreclosure process, a foreclosure sale date may be closer than you think.  Once the bank sets the sale date, things can get complicated.  Relocation incentives may be jeopardized and an approval on your short sale just may not happen.

If you're considering a short sale, here are a few things to keep things going in the right direction:

• Get paperwork to your agent ASAP.  If the negotiator needs an updated bank statement or pay stub (and they ALWAYS want updated documents) don't drag your feet.  Once you return it to your agent, they have to submit to the bank (24 hours), the bank has to upload to their system (48 hours), the negotiator has to put your file in their queue (3-5 days), and then they have to review the document (3-5 days). You get the picture! What seems like a one day delay will turn into a week or two.
• Be proactive: send your updated bank statements and pay stubs to your agent when you receive them. Negotiators often call or email when they're working on your file specifically.  If the negotiator needs an item and your agent already has it, it can be provided immediately and will cut down on time lag considerably.  Negotiators work files in order, so once your file has been worked on, it goes to the back of the line.
• Answer your agent's phone calls / emails:  your agent may need clarification on a matter, and ignoring their calls or emails will keep them from getting answers back to the bank.
• Updates:  Ask your agent for weekly updates.  The negotiator should be working on your file at least once a week, and they should be contacting your agent accordingly.  If you don't hear from your agent, they may not be keeping tabs on the file and may be missing important requests from the negotiator.
• BPO/Appraisal: One of the biggest obstacles to an getting a short sale approval is an appraised price on your home that's higher than it should be. After your agent submits a short sale package to the bank, the bank will order an appraisal to ensure that the offer submitted is suitable (close to market value).  Your agent may not be present at the appraisal (or BPO, broker price opinion, where a real estate agent determines value) and homeowners are sometimes there to meet the appraiser or broker.  It's human nature to try and point out the positive aspects of your home.  However, this will often backfire in your short sale approval process.  Pointing out how perfect your home is will result in a high appraised value.  This may keep buyers away.  Buyers are willing to wait for a short sale because they feel they're getting a good deal.  A short sale appraised at or above market value IS NOT a good deal and becomes difficult to approve. 

For more information, CALL US!

CONTACT US