The Top 10 Mistakes In Short Sales


Not Knowing the Foreclosure and Short Sale Process There are two types of foreclosures, each with its own set of rules and these rules vary from state to state. The short sale process is puzzling even to real estate agents who have done a lot of traditional transactions. In fact, clueless agents tend to over-simplify the process and underestimate the amount of time and effort involved. Not Knowing When to Hold ‘Em or when to Fold ‘Em A short sale expert knows when to walk away. It can’t be said in more simple terms than that. If the deal is not working, all resources have been exhausted and every measure has been taken, too much money will be lost when you cling to the transaction. A short sale specialist knows when walking away is the best option. Lingering deals are a killer on the nerves and the pocket. Poor Communications With The Seller and Buyer Location, location, location may be the motto of the traditional real estate agent but excellent communication is the maxim by which a short sale agent survives.

A realtor has to constantly update both the homeowner and buyer so that no one is left out of the loop and no recriminations will ensue. Ignorance of the Real Estate Laws Not knowing the law when it comes to real estate will hugely impact the success of a short sale. There are legalities which need to be followed to the letter in order not to ruin the short sale process. In fact, a lot of short sale transactions do not go through just because of a few seemingly harmless (yet illegal) activities. Not Working As A Team Don’t go it alone. It takes a team to make a short sale happen. Everyone from mortgage brokers, building inspectors, attorneys, to title company employees are involved in this complex process. Cooperating with all of them will ensure that the flow is smooth. Not Qualifying the Client Improper qualification of the client can nullify the deal. There is a strict process by which you should qualify the homeowner. Failure to do so will obviously not make the short sale reach completion. Not Qualifying the Property To qualify for a short sale the property value must be equal to the amount of the agreed upon deduction. A complete inspection must be performed to acquire the precise condition of the home, including the neighborhood statistics and the economic real estate climate at the time of the sale.

The short sale process can only proceed if the property meets the criteria. Being Too Timid in the Short Sale Process Be aggressive, B – E aggressive – B-E-A-G-G-R-E-S-S-I-V-E! This is not a time to be passive. Persist and give it everything you’ve got. Negotiate with confidence! Not Following Up Keep abreast of what is happening at all times and follow up consistently. Light a fire under whoever needs it to make the deal happen. Every day counts. Every communication should be responded to. Every deadline has to be met. Be a short sale specialist in every way. Greed Sometimes, a real estate agent wants to preserve his commission at a certain level and refuses to meet the lender’s demands, no matter how reasonable, because of this need to obstinately stick to a certain amount of money. Well, a lot of transactions have failed this way and they shouldn’t have if only the real estate agent let go of his preconceived notions and become flexible enough to listen and revise his position.