Listing Program

This will go over the short sale process from generating the business all the way to actually getting the listing.

A few main types of leads are available – Leads that are in full mortgage default AKA NOD (notice of default) leads, “Lis Penden” leads which have been served lis pendens or notice of intent to foreclosure (in judicial foreclosure states) or leads from soft hits on credit reports for homeowners that are 30 days late on any debt.

One way to reach these homeowners is to go “door knocking”, or driving by to leave a letter at their doors. Hand written letters have a very high response rate. This is very time consuming but also has the best results. The way most investors and agents reach these homeowners is by mailing postcards or letters to them.

This was a method traditionally used by investors such as “Joe Buys Homes” or “Cash Home Buyer” in distressed areas. We have been fortunate in many areas, especially highly distressed areas or newer home communities to put out signs as short sale Realtors. We have used signs with terms such as “Short Sale Expert Realtor FREE HELP!” with, of course, our brokerage name/phone number or any compliant requirements. Be cautious of sign ordinances. Expect signs to be taken and also to possibly receive complaints. In many areas, you can get away with putting out signs on Thursday afternoons, as the “sign police” will not be out on Fridays many times, and don’t usually work weekends! Also be cautious not to hang signs on PRIVATE land anywhere. If a step ladder is available to hang signs in trees or on poles, this can help them stay out longer as well.

internet leads tend to be of pretty good quality if you provide a good website or resource. Creating a good flier and placing the content on Craigslist tends to be a produce good results. The Short Sale Specialist Network also provides tons of screened short sale referrals!

First discuss the qualifications for a short sale and find out if the seller is are in a financial hardship. The borrower does NOT have to be in default or even late on payments in many cases.

Just being “upside down” will typically not qualify a homeowner in most cases. A homeowner’s dissatisfaction with their neighborhood or being too far from work are also not hardships. A short sale is typically only for those who have to sell, not for those who want to sell.

To insure time is not wasted marketing a property only to see the seller do a loan modification, many agents will screen out potential customers against a future loan modification. Please inform them that most of the loan modification products are only temporary. It’s not a bad idea to ask sellers “could you afford the home if your payment was a few hundred dollars less per month”?

Once you have a ready and willing seller who is qualified for a short sale, it is essential to discuss the short sale process with them, as well as any expectations in the process.

Financial Worksheet – This two page worksheet will detail a homeowners financial situation.  It also has another list of the required documents.

Short Sale Package Checklist – This is a simple checklist of items that will be included in a complete short sale package.

Short Sale File Cover Sheet – This is a cover sheet for the front of your short sale files.  It will have basic property information that you may need to quickly find when calling their lender (such as borrower social security number, loan number, address ect…)

Call Log Sheet – An important part of a short sale file is having a call log to document any calls, faxes, or communications with the sellers lender regarding the short sale transaction.

Lenders 3rd Party Authorization Form – This form will give you authorization to speak to the borrowers lender regarding the loan.

How to write a short sale hardship letter – This is an instructional sheet to give the homeowner instructing them on what to write in their hardship letter.

Short Sale Hardship Sample Letters – Here are some sample hardship letters you may want to save and give to homeowners who would like some guidance on what to write.

These are a couple of disclosures we have found useful in short sale transactions in our area.  You may want to customize them to your own expectations and local practices.

Short Sale Offer Instruction – While procedures vary greatly from area to area, this form just has some general offer instructions geared towards buyers agents.  Your local procedures may vary.

Short Sale Buyers Disclosure – This is a general disclosure to give to potential short sale buyers to help inform them of the short sale process. This is NOT a “short sale addendum” and is typically NOT part of a short sale transaction,  just a general form we have found useful.  A short sale addendum will typically contain much different terminology.