Listing Program

[FMP width=”640″ height=”505″ controlbar=”docked” autoplay=”false”] [/FMP]
This will go over the short sale process from generating the business all the way to actually getting the listing.
Link to: Forms Group 1
Lead Generation – Three great ways to generate short sale leads
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.
There are MANY providers of this data; here are a couple:
First American CoreLogic – – (800) 345-7334
Default Research, Inc. –
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.
Here are a couple sources to create postcards to mail out:
** Remember, consistency is the key when it comes to any marketing!
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.
** Signs should be yellow background with black print, as they get the most attention. 18X24 signs are good.
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!
Screening Short Sale Sellers
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.
Usually the seller must be in a hardship of some sort. Some hardships include:
Loss of employment or major reduction in income
Divorce or legal separation
Major repairs needed without resources to pay for them
Death in family or major medical expenses
Very high debt to income ratio
Relocation or job transfer
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.

** Divorce cases tend to be higher risk many times.  Also, if a homeowner owns many properties they are

upside down on, they may be a future candidate for a bankruptcy.

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.
Note all documents sellers are required to produce for a short sale in the “financial worksheet” , or the “short sale checklist” below.
Encourage the homeowner to have all required short sale documents ready to give to you at your listing appointment
Property should be priced similar to what other short sales and foreclosure properties have sold for in the last few months, if applicable.
Servicers tend to move faster than the major lenders. Approval from mortgage insurance companies or government loans will typically require additional approval and will usually add an additional 2-3 weeks to the process.
There is no cost to seller in a short sale

The included forms below will help you explain the short sale process to homeowners, and will also help you look like an experienced professional when it comes to short sales!   Feel free to personalize  them by adding your logo or contact information.  However, we do ask that the forms not be resold or reproduced for public use or posted in ANY online or public forum.  You will want to print these forms and documents or save them on your computer for future personal use. Thank you for your cooperation!

Seller Q and A Qualification Worksheet – This worksheet has important questions for you to ask a homeowner when qualifying them for a short sale
Seller Information Worksheet – This is a basic property information sheet that you need to fill out about the homeowner as you are speaking to them and qualifying them.
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.
Short Sale Frequently Asked Questions – This three page document will answer many of the homeowner’s questions regarding a short sale
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.