Negoitating with the lender in a short sale

You have just been approached by a seller in need with a home they can no longer afford. You listen to their story of what has transpired in their life to get to this point and can't help but feel sorry for them. The realization has hit that there is a serious negative cash flow in their financials and the best thing to do is to get rid of their property they can no longer afford.

No problem you say, we can sell your home and get you out from under that monster payment. But wait, you soon realize that what is owed is not what the property will sell. The property is no longer worth what is owed and now the seller is facing a short sale and worst off negoitating with the bank to take less than what is owed.

I hear horror stories all he time and have a few of my own to tell but that is for another time. Just a few pointers that can make this process much easier, although I would never claim to make this fun!

First and foremost find out what items are needed to submit in the short sale package to the bank in question. Every bank needs about the same package but there are a few that want a specific item like their own financial sheet. Do yourself a favor and find this out and send in what exactly they need.

Secondaly, never send an incomplete package! The banks are overwhelmed with paperwork and packages and this will certainly get yours tossed in the trash. Double check your items list twice prior to sending.

The most overlooked item is the most critical - a signed contract for purchase! I have seen it all too often how a beautiful package was put together with all the needed documents and this was left out. I can assure you this is the fastest way for your package to make it to your assigned loss mitigator at the bank just to have it tossed in the trash.

Now that you have an understanding what is needed your job is to be a big pain in the you know what to the bank. Call every day twice a day to get your package assigned to the loss mitigator. If you wait for them to call you you are taking a huge risk because that may never happen.

Take the initiative and be in control. This will certainly help with the short sale but it will never guarantee smooth sailing.

As always your thoughts are welcomed