As promised, here is the short sale info that you need to stay ahead in this market.   Keep checking your email because over the course of the next few days, we will make sure that you keep getting the info that you need to stay on top of this market.

Remember:  This is invite only insider information!

Agent Short Sale Secrets

What is a Foreclosure?

Secret- Before we know where we are going we need to know where we have been.
To be able to provide 100% service to your clients it is important that you understand the
foreclosure process 100%.

Right now, from this second forward, forget EVERYTHING YOU’VE EVER BEEN
TOLD about foreclosures and short sales.  Everything other agents have said to you, what
you’ve heard from mortgage people, etc.  Take good notes because we’re sharing the
secrets that will make you successful in this market.

What is a Short Sale? A short sale is when the lender or bank agrees to accept less for the
property then is actually owed on the mortgage.

Why would a lender accept a short sale?

Behind the bank’s decision to accept a short sale are scrutinized values, such as repair
costs, realtor commissions, and holding costs.  Some other factors include:

1. Does the homeowner deserve a short sale?  If you have a property owner that
makes a substantial amount of  “verified” income, you have a problem.

2. Is it in the bank’s best interest to take a short sale or repossess the house and
sell through a Realtor?

3. How many properties does the lender currently have in default?

4. How flexible is the investor backing this loan?

5. Is a third party servicing this loan?

6. What is the demeanor of the bank representative in loss mitigation with whom
you are dealing?

7. Is the bank precluded from the selling short due to mortgage insurance or
other stipulations within the mortgage note?  Obviously if the property owner
is in foreclosure, it is highly probable there is a financial cause.  However if
the bank determines that the property owner’s cause for the foreclosure is
unjustified, they may not pursue a short sale.  Other factors are listed above.

8. Does the homeowner deserve a short sale?  If you have a property owner that
makes a substantial amount of “verified” income, you have a problem.

9. Is it in the bank’s best interest to take a short sale or repossess the house and
sell through a Realtor?

10. How many properties does the lender currently have in default?

11. How flexible is the investor backing this loan?

12. Is a third party servicing this loan?

13. What is the demeanor of the bank representative in loss mitigation with whom
you are dealing?

Secret- The lender does not want the borrower to declare bankruptcy. So, mentioning to
the lender that the borrower may consider bankruptcy may be worth bringing up prior to
any negotiations.