Ventura County CA – It always amazes us when we hear the stories of agents who talk about horrible short sales are. “Don’t waste your time on a short sale”, they tell homeowners.
“They are a waste of time. The lenders won’t approve them and the process is horrible. The last short sale I worked on took 9 months”, they say.
This gives short sales a bad name. Homeowners mistakenly believe that a short sale is impossible. We are here to tell you that is not true.
The Stop Foreclosure Institute has sold and closed many short sales. There are two keys to being successful. First, you have to understand how the process works. Second, you have to keep an eye on the transaction from start to finish.
Here is the closest comparison I can think of on why some agents hate short sales. Let’s say that you are a brand new driver.
You hop into a car, accelerate to 70 miles per hours, turn on cruise control, and then start reading a book. Every 5 minutes or so you look up to check on what is going on with your car.
You aren’t successful at driving a car. Your friend is thinking about learning how to drive. “Don’t even think about driving a car. Driving just doesn’t work and it is impossible to get anywhere”, you tell them.
Is what you just said correct? Is driving a car impossible? No, it’s not! But, many agents make the same claim about short sales.
They have never studied and learned the process. They have never successfully sold a short sale. But, they are sure ready to tell you that it doesn’t work.
Here is what they missed about short sales.
1. You need to be knowledgeable about the process. You need to have a solid understanding of HUD-1s, BPOs, and the short sale guidelines of the entity that owns or insures the loan.
2. You have to stick with the transaction. You need to follow up with the short sale lender regularly. You can’t check in on the short sale every week or two. A lender will often ask for something and want it back within 24 hours.
If they don’t get what they need, then they will close the file. If you agent isn’t checking in regularly, then the short sale file could be closed without their knowledge.
In addition, your agent needs to be able to make sure the HUD-1s and BPOs are accurate. I will explain what those acronyms mean and why they are important in my next post.
Ask the agent you are interviewing why they are important.
Thanks for reading this,
Chris B Johnson, Realtor
Chris is a Real Estate Agent at Prudential California Realty.
Certified HAFA Specialist, Certified Short Sale Specialist