DETAILED STEP BY STEP ....
SHORT SALE
SOLUTIONS...
Helping property owners
avoid foreclosure
and
move on with their lives
Step 1: Provide introduction to seller/client
  • Cordial introduction is essential
  • Keep conversation general – say you work with a professional negotiating team that specializes help people solve foreclosure
    issues
  • Suggest they meet with the local representative, Tori Anderson to discuss the process & see if it is a good fit for their needs.
  • Answer the questions you feel comfortable with, but remember, keep it simple.  
  • Emphasize that you are the real estate marketing expert, and we are the Short Sale experts.... all their questions will be
    answered.  With government policies changing, the process is continually evolving... it's best to defer on technical questions.
  • Initial contact normally is by telephone  
  • If client wants to know more at that point, an in-person meeting is arranged

Step 2: Discuss process with seller and gather of all paperwork
  • I'll go over as much detail of the process as the client wishes - including diagrams.
  • Give them a list of the required documents
  • Get a more thorough understanding of their hardship situation
  • Help them compose their own hardship letter - structured in the way lenders need to see it
  • Verify that all questions and concerns have been addressed - bringing our Head Negotiator, Kristi Duvall into the conversation if
    needed for the client's comfort
  • It is key that the seller be cooperative - we ensure this by making sure the process is thoroughly understood
  • Recommend that their own attorney and/or CPA should be consulted before signing any documents.  Stressing that we are not
    qualified to give expert advice on these subjects.
  • Inform client that there will be ongoing updated documentation needed, making sure they will be cooperative.

Step 3: We build the strongest case possible for negotiation with the Lender(s);  We are very
      specific as each case is unique.
  • Work with the realtor to prepare a CMA
  • Included in the CMA and our BPO is a list of the negative factors affecting the property (physical damage or wear; sexual
    predators in area; damaging news articles; days on market; crime; public projects; waste water; etc.)
  • We prepare our own BPO as well
  • These two documents allow the RIGHT PRICE - one the market will support AND one the bank will accept.  If the price is
    unbalanced either way, the deal cannot be successful.
  • Estimated cost of repairs is prepared for the Lender's information
  • Seller’s hardship – we humanize the house – turn it to a home occupied by real people who are seeing their dream of home
    ownership die.

Step 4: We submit an offer to the Lender(s).  Though the first offer may not be accepted, we
      work back and forth with all lenders and lien holders with multiple offers and counter-offers.
  • We immediately start the negotiation process with the lender;  The Realtor(R) can’t do it without a buyer in hand.  
  • A delay in presenting the offer can kill the deal... The homeowner may back out due to frustration and stress... OR ... A home
    can go to foreclosure while waiting for a bonafide offer to come.
  • We present offer immediately to the lender to STOP foreclosure and START the time-consuming negotiation process.
  • How do we know what offer to present?  We consider two sources... (1) The Realtor(R) suggests a "30-60 day Sale Price" and (2)
    experience in knowing how much leeway the lenders have... that’s our base number
  • Offer incorporates repair estimate and other issues

Step 5: We manage the Lender's Brokers Price Opinion – make sure they do proper job
  • If not managed rightly, no matter if every other aspect is done right, this is a deal-killer
  • We make sure ALL the information is taken into account when the Price is rendered.

Step 6: We manage the complex process of negotiating with multiple Lenders & Lienholders
  • Mortgages, HELOCs, HOA, IRS, Contractor
  • We Request full satisfaction of liens - we cannot guarantee results, but in the great majority of cases, we are able to achieve this
  • We provide the right wording for the MLS, protecting you and your client
  • Once an Approval has been given by all lenders, we monitor the expiration date closely, aligning it with the number of offers
    received, making sure  nothing falls through the cracks
  • Careful planning on closing is critical... months of work can blow up without the right circumstances
  • We have local attorneys well-versed in our system, assuring smooth and easy closings

Step 7: You continue marketing the property to secure a buyer while we continue negotiations.  
You keep your  listing
  • Listing stays with original Realtor(R)
  • Listing price reflects the BPO – when it goes active in the MLS, we base it on what we know lenders will accept.
  • We market to our investors as well – we have a number interested in the right property
  • We require Proof of Funds;  the Buyer must be prepared to close upon Short Sale approval
  • We fully disclose the Short Sale to all buyers, making sure they know the process can take some months to complete;  there is
    no guarantee the Lender will accept the offer; approvals often expire within 30 days

Step 8: We pay off the Lender(s) and close with buyer
  • Careful planning for the Closing is CRITICAL... months of work can blow up in a moment without the right circumstances
  • We work with experienced attorneys, well-versed in our system, assuring smooth and easy closings.
  • We pay for the seller's Credit Repair when the deal is closed.

Step 9: Closing Attorney sends you your FULL commission
  • Wonderful!  You've marketed the property, while avoiding the hassle associated with the Short Sale
  • You receive your full agreed-upon commission
  • Your client is relieved
  • We pay for the Seller's Credit Repair when the deal is closed, allowing them to move on to their next phase of life in a better
    position for having worked with you!                                                                                
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