Top Ten Tips for Short Sales

1)      Have the seller sign a pre-foreclosure disclosure which includes a notice of possible ‘phantom income’ and receipt of a 1099.

 

2)   Add to the MLS remarks that the sale is contingent upon lender approval and receipt of an ‘as-is’ addendum.

 

3)    Price the house 5-10% below market to insure a quick sale.

 

4)    Have buyer & selling agent sign a separate pre-foreclosure addendum which includes a possible commission reduction notice.

 

5)    Locate the loss mitigation officer assigned to this file and get their direct phone, fax, and email contact numbers.

 

6)    Ask about the short sale policies for that lender.

 

7)    Ask what you can do to expedite this transaction.

 

8)    Check the title policy every 30 days.

 

9)    Send a complete short sale package that includes: intro letter,hardship letter from the seller, listing agreement, comps, estimated net sheet or HUD1, the first page of the past 2 years taxes, the last 2 pay stubs, and the last 2 bank statements.

 

10)  Request that the lender does not send a 1099 to the seller, and  marks the credit report ‘paid as agreed’.