How To Make Your Short Sale Shorter

By
Real Estate Broker/Owner with Mint Properties, Tni LeBlanc (805) 878-9879 CalBRE #01871795
http://actvra.in/D5R

How To Make Your Short Sale Shorter

There are many aspects of the short sale process that are out of a short sale seller’s and short sale agent’s control. How long the short sale lender will take to process the file, whether there is more than one servicer on your loan, and whether there is mortgage insurance certainly impact timelines on short sale approval, and they cannot control be controlled. However, there are several factors that a short sale seller CAN control that will help a short sale stay short:

  • Have your financial documents ready. That means no “running start” to your listing. Have all the documents needed for your short sale in your short sale agent’s hands at the beginning of the process. If your short sale lender throws a loop and asks for an additional document, turn it around as quickly as possible.
  • Make the property easy to show. Tuesdays between 2pm – 4pm may be the most convenient time for you, but it may not be convenient for potential buyers. Most buyers want to see your home weekday evenings after work or during the day on the weekend. Make sure your home is available for them to see during those times with only a reasonable amount of notice.
  • Price the property to sell. Selling a short sale is not like selling a regular listing. A short sale is meant to be a quick sale. It should be priced so that an almost immediate reaction is received from the market. The fact that you paid twice the list price for the home should not factor into the list price. It should be priced according to the market, comps, buyer demand and should reflect that it is a short sale which requires the buyer to wait for lender approval.
  • Find the right buyer. Many short sale delays are caused by buyers walking away from the deal and the process. Make sure the buyer’s situation works for a short sale, if they need to move in 30 days, this may not be the right property for them. Get some commitment from them — require them to put their deposit in escrow and do their physical inspection and appraisal up front. Then, if the buyer’s inspections and appraisal are complete and their loan is fully approved, once short sale approval is obtained, a quick closing is a certainty.
  • Hire an experienced short sale agent. An experienced short sale agent can help you avoid common short sale pitfalls and errors. Having an experienced short sale agent handling your short sale negotiations can make all the difference in how smooth and quickly the process will go and I highly recommend it.

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home and would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *How To Make Your Short Sale Shorter*

Posted by

Tni LeBlanc, Broker
(805) 878-9879 mobile/text

tni@mintprop.com
www.MintProp.com
CalBRE #01871795

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Re-Blogged 6 times:

Re-Blogged By Re-Blogged At
  1. Terry McCarley 06/27/2012 08:19 AM
  2. Lisa Orme 06/27/2012 09:33 AM
  3. Rosemary Brooks 06/27/2012 05:34 PM
  4. Petra Norris 06/29/2012 04:22 AM
  5. Gene Riemenschneider 07/03/2012 09:25 AM
  6. Gabe Sanders 07/09/2012 03:37 AM
Topic:
Real Estate Best Practices
Location:
California
Groups:
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Short Sales Specialists
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Short Sale REALTORS®
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Show All Comments
Rainmaker
390,333
Tni LeBlanc
Mint Properties, Tni LeBlanc (805) 878-9879 - Santa Maria, CA
JD, MA, REALTOR, CalBRE # 01871795

Anna - Thanks for the feature.  Very true making sure you have a committed buyer is essential.  And, you have to set reasonable expectations so the buyer remains realistic.

Thanks Tim!

Very true Gene.  There are more and more short sales.

Robert - BofA is getting better, I think.

Brenda - I know you will!

Barbara - I agree a great buyer's agent is a big plus on a short sale.

June 27, 2012 07:21 PM #16
Rainmaker
390,333
Tni LeBlanc
Mint Properties, Tni LeBlanc (805) 878-9879 - Santa Maria, CA
JD, MA, REALTOR, CalBRE # 01871795

Joan - If that is true -- there is a lot of unchecked illegal activity going on.  In CA, attorneys and real estate agents can negotiate a short sale.

Mike - That's too bad.  There are too many bad stories out there and I think short sales have actually gotten a lot better!

Hi Ira - I've had a lot of success with short sales.  And not all of them are long and drawn out.

Very true Dave.  If you don't plan on being responsive to the bank request, you might want to look at other options than a short sale.

June 27, 2012 07:26 PM #17
Rainer
71,505
Bas Panch
SCV Home Buyer - Valencia, CA

Hi Tni,

These are great tips and advice! Thanks for sharing this information, I'm sure a lot of homeowners will find it very useful. Keep up the good work as a top Santa Maria short sale agent!

June 27, 2012 07:34 PM #18
Rainmaker
973,675
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Pasadena Real Estate Representation 818.516.4393

Hi Tni -- all great point for sellers who need to short sale.   As far as pricing -- and it's probably more of a listing agent issue than seller --- short sales that are priced unrealistically low may bring lots of enthusiasm but how realistic is this type of pricing with a short sale?  If the goal is to sell the property, price it realistically based on the factors at hand.  When I see a new listing pop up on our multiple listing hotsheet that is priced "too good to be true" -- typically it's being handled by an inexperienced or out-of-the-area listing agent --- when I make an offer on behalf of buyers my goal is for that sale to close.   

June 27, 2012 07:56 PM #19
Rainer
204,518
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h
Great advice spoken from someone who knows! It is amazing to me how often folks don't want to heed such good advice but then still get frustrated if the results aren't impressive.
June 27, 2012 08:52 PM #20
Rainer
257,534
Richard Bazinet /MBA, CRS, ABR
Realty ONE Group - Scottsdale, AZ
Phoenix Scottsdale Real Estate

Good one Tni. All great suggestions. I learned it from the onset, get the client ready right from the start, get the right buyer and buyer-agent, price it to sell and bring in a partner to process it (in my case a title company).

June 27, 2012 09:43 PM #21
Rainmaker
1,345,298
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Being continually and vigilantally cooperative speeds the process.....and the listing agents should be well equipped with coaching both sides as to what is expected during the process.

June 28, 2012 02:35 AM #22
Rainmaker
1,054,799
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Tni,great tips for a short sale buyer...the last tip is one of the most important- hiring an experienced short sale agent..many buyers work with agents who do not have a clue and do not prepare their clients well for what can be a long haul with 2nd loans & mortgage insurance on a loan.  Working with you as a Santa Maria short sale agent is key!  good share

June 28, 2012 03:05 AM #23
Rainmaker
1,004,213
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Tni.  What do have against 2-4 on Tuesdays? :)  Great post especially having all the docs before putting in on the market.

June 28, 2012 03:21 AM #24
Rainmaker
572,328
Phil Leng
Keller Williams Eastside Market Center - Kirkland, WA
Phil Leng Team - Residential Real Estate Experts &

Hi Tni,

A short short sale.

After 6 years, it seems like we are getting closer to this ideal.

Phil

June 28, 2012 03:36 AM #25
Rainmaker
1,847,282
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

These are good tips. Buyers looking to buy a short sale in your area should call you. You are an expert.

June 28, 2012 03:47 AM #26
Rainmaker
529,256
Ed & Tracy Oliva
West USA Realty - Arizona - Pinetop Lakeside, AZ
Arizona Agents

T:    This is some good info for all,keep up the good work and good luck with your business in 2012,  E

June 28, 2012 04:05 AM #27
Rainmaker
390,333
Tni LeBlanc
Mint Properties, Tni LeBlanc (805) 878-9879 - Santa Maria, CA
JD, MA, REALTOR, CalBRE # 01871795

Hi Bas - Thanks.  I hope they will take the advice to heart.  Short sales can be shorter.

Hi Mike - I too see that same mistake.  Sometimes the agent is working with a very shortened time frame, however other times it is just flat out priced too low.  Short sale sellers are opinionated as well about the value of their property.  Often, they can't believe what the current value of their property is -- but they shouldn't let that hang them up -- they should listen to their experienced short sale agent.

Mark - So true.  Don't turn in your documents two weeks late and expect the short sale to sail through.  Sellers that are ready on day one get their approvals faster.  You can't always control it, but slow documents means it is definitely going to be a long process.

Richard - Sounds like a plan!

 

June 28, 2012 04:17 AM #28
Rainmaker
390,333
Tni LeBlanc
Mint Properties, Tni LeBlanc (805) 878-9879 - Santa Maria, CA
JD, MA, REALTOR, CalBRE # 01871795

Sally & David - Absolutely.  Well put.

Thanks Ginny. Yes, not having reasonable expectations can make the short sale painful and seemingly drawn out for everyone involved.  I remember a short sale that I predicted a 5 month approval due to the complexity of the file.  I informed the buyers agent at the outset.  After we accepted the offer the buyer 's agent called and said he didn't see why approval couldn't be obtained in two months and he told his client that as well.  Of course -- they canceled.  Nice.

Thanks Conrad!  Glad you liked the post.

Phil - We may get there one day and hopefully soon less of a need for short sales.

Hi Gita - Buying a short sale is challenging and having an experienced agent help you can be critical.

Thanks for stopping by Ed & Tracy!

June 28, 2012 04:24 AM #29
Rainmaker
657,921
Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

Great list Tni, at the current state, this is almost like an oxymoron. 

June 28, 2012 10:54 AM #30
Rainmaker
133,991
Candy Miles-Crocker
Online Real Estate Agent Training - Chevy Chase, DC
Realtor - Real-Life Real Estate Training

Thanks for these great tips Tni!  I used to hate doing short sales, but now I find that they aren't too bad if everyone involved knows what they are doing.

June 28, 2012 01:22 PM #31
Rainmaker
390,333
Tni LeBlanc
Mint Properties, Tni LeBlanc (805) 878-9879 - Santa Maria, CA
JD, MA, REALTOR, CalBRE # 01871795

Eileen - LOL.  They are getting better out here.

Candy - Very true.  The key is working with experienced folks.  It makes it much easier.

June 29, 2012 07:13 AM #32
Ambassador
1,090,578
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Your list is great. Of course, the key (and you allude to it here) is the cooperative seller. 

July 01, 2012 07:01 AM #33
Rainmaker
546,369
Gary Frimann
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
California Broker and REALTOR

Hi Tni, As always, a great post.  Did you ever think that maybe (just maybe) the lsting agent restricting the showing time (ex. Tuesday 2-4) was so that they might have a better chance of double ending the sale.  I firmly believe that to be the case from what I have seen.  Personally, I think lenders need to disallow double ending shortsales... Soon to be one of my topics.

July 02, 2012 12:37 AM #34
Rainmaker
597,225
Petra Norris
CDV TransAtlantic, Inc. - Lakeland, FL
Realtor, Lakeland FL Homes for Sale

Another excellent post here ,Tni.Thanks for sharing this with us.Continue being the best Santa Maria Short Sale Agents.

 

November 07, 2012 03:34 AM #35
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Rainmaker
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Tni LeBlanc

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