The 5 Steps to Listing a Successful Short Sale
Step 1: Complete 80% of the Paperwork at the First Meeting
You may have heard horror stories about the paperwork required for a short sale. The good news is, the Certified Distressed Property Expert (CDPE)® system will help you complete 80% of the paperwork on your first listing appointment!
By this time, you should have already pre-qualified the seller and determined that they are eligible for a short sale. You’ll need to review and get the seller to sign the following forms:
1. Signature Authorization – Recommended for all transactions (distressed or not). This should be sent to the mortgage company immediately after the listing appointment.
2. Short Sale Disclosure – In a short sale situation, this is mandatory.
3. Hold Harmless – In a short sale situation, this is also mandatory.
4. Homeowner Property Checklist – Remember, the property has to sell. Include suggestions for getting the property prepared on the Homeowner Property Checklist.
5. Homeowner Document Checklist – Before you leave your clients’ property, you need to leave them with a list of documents they will need to have ready for you. The documents need to be current, meaning if you list in January and don’t have an offer to negotiate until April, you will need documents for the time period immediately preceding the offer, not the listing (February and March).
6. Homeowner Financial Worksheet – This form is what lenders use to determine whether or not your sellers can pay their mortgage, so be sure that it is complete and that it shows a deficit.
7. Listing Addendum – Do not list a distressed property for less than seven months, and specify scheduled price changes in your listing agreement.
8. Hardship Letter – This explains to the lender what has happened to cause your client to be unable to continue making mortgage payments.
Look for Step 2-5 to Follow: