Keller Williams Dallas City Center - Greenville Avenue in downtown Dallas, Texas

Make Sense of Short Sales

08 06 09 - 11:23

Seven ways to make short sales go smoothly for everyone involved. Working with clients who are buying or selling a home in a short-sale transaction is a different experience. While the fundamentals of the transaction remain consistent, there are some unique twists that can catch even a seasoned Texas REALTORÂ® off-guard. The following tips will make the short-sale process less stressful and more manageable for you and your clients.

Set expectations. Setting the right expectations from the outset may be the most crucial element of a successful short sale. Make sure the buyer and seller understand the entire process and the anticipated time frames for each step. EveryoneÂfrom real estate professionals to experienced buyers and sellersÂcan get frustrated with delays, which are quite common in short sales. Understanding the process and the timetable empowers everyone, and when expectations are at the right level, long periods of inactivity become more tolerable.

Stay organized. Organization is a key component to any transaction, but in short sales, it can make or break you. Between paperwork, lender-required short-sale packet information, and lienholder correspondence, your short-sale files can easily be double the size of a traditional transaction. Prepare checklists of the items you need to receive from clients and place a copy of the checklist in each file so that you can check off the items as you receive and verify them.

Document everything. Managing a short sale requires extensive documentation. Create a communications log for each file, and document every interaction with your client and, most importantly, with the lienholder. Record the date, time, and the topic discussed, along with any instructions provided. Also be sure to verify and document the receipt of paperwork by lienholders, and save fax confirmations. Having a record of who you spoke to, when you spoke to them, and what they told you can buy your client some critical time if there is a dispute on how a transaction was handled.

Communicate. There are elements of a short sale that are beyond the control of either the buyer or seller. Periods of inactivity can make both parties nervous or uneasy. Regular communication from the listing agent, such as an e-mail informing the buyerÂs agent of recent activity or lack thereof, can be a reassuring touch that the deal is continuing to progress, even if it is at a slower pace than either party may desire.

Verify lienholder requirements. Every short sale is different, and each lienholder will have different guidelines for submitting and considering offers. In your initial conversation with a short-sale seller, determine which company his mortgage is with, then contact the lienholder and verify their requirements. This enables you to advise the seller exactly what information he will need to gather and prepare. Having the necessary information together when you take a short-sale listing will make packet and offer submissions smoother.

Know the forms. Using the TREC Short Sale Addendum and the Texas Association of REALTORS® Sellers Authorization to Release and Advertise Certain Information as well as understanding how the Short Sale Addendum affects elements of the sales contract is vital to effectively facilitating and managing a short sale. As with any transaction, proper use of the appropriate forms offers protection for you and your client.

Be patient. Short sales are not easy transactions. They require patience, understanding, communication, and consideration. Remember that we are professionals and, regardless of the frustrations felt by us and our clients, we should always treat one another with respect and professional courtesy. Both clients win in a short sale. So should both agents.

Steve Shatsky is a broker-associate and short-sale specialist for Keller Williams Realty-Dallas City Center. He has assisted clients with short sales for over five years and has developed and taught numerous seminars and classes on short
sales. Visit his website at www.HomeSalesRemedy.com Contact him at steve.shatsky@homesalesremedy.com.

This article originally appeared in the May Issue of Texas REALTOR Magazine.

	Archives 01 Nov - 30 Nov 2008 01 Mar - 31 Mar 2009 01 Jun - 30 Jun 2009 01 Sep - 30 Sep 2009 01 Oct - 31 Oct 2009 01 Nov - 30 Nov 2009 01 Jan - 31 Jan 2010 01 Mar - 31 Mar 2010	« Dallas Watering Ordin… \| Home \| Mega Agent Camp 2009 » Make Sense of Short Sales 08 06 09 - 11:23 Seven ways to make short sales go smoothly for everyone involved. Working with clients who are buying or selling a home in a short-sale transaction is a different experience. While the fundamentals of the transaction remain consistent, there are some unique twists that can catch even a seasoned Texas REALTORÂ® off-guard. The following tips will make the short-sale process less stressful and more manageable for you and your clients. Set expectations. Setting the right expectations from the outset may be the most crucial element of a successful short sale. Make sure the buyer and seller understand the entire process and the anticipated time frames for each step. EveryoneÂfrom real estate professionals to experienced buyers and sellersÂcan get frustrated with delays, which are quite common in short sales. Understanding the process and the timetable empowers everyone, and when expectations are at the right level, long periods of inactivity become more tolerable. Stay organized. Organization is a key component to any transaction, but in short sales, it can make or break you. Between paperwork, lender-required short-sale packet information, and lienholder correspondence, your short-sale files can easily be double the size of a traditional transaction. Prepare checklists of the items you need to receive from clients and place a copy of the checklist in each file so that you can check off the items as you receive and verify them. Document everything. Managing a short sale requires extensive documentation. Create a communications log for each file, and document every interaction with your client and, most importantly, with the lienholder. Record the date, time, and the topic discussed, along with any instructions provided. Also be sure to verify and document the receipt of paperwork by lienholders, and save fax confirmations. Having a record of who you spoke to, when you spoke to them, and what they told you can buy your client some critical time if there is a dispute on how a transaction was handled. Communicate. There are elements of a short sale that are beyond the control of either the buyer or seller. Periods of inactivity can make both parties nervous or uneasy. Regular communication from the listing agent, such as an e-mail informing the buyerÂs agent of recent activity or lack thereof, can be a reassuring touch that the deal is continuing to progress, even if it is at a slower pace than either party may desire. Verify lienholder requirements. Every short sale is different, and each lienholder will have different guidelines for submitting and considering offers. In your initial conversation with a short-sale seller, determine which company his mortgage is with, then contact the lienholder and verify their requirements. This enables you to advise the seller exactly what information he will need to gather and prepare. Having the necessary information together when you take a short-sale listing will make packet and offer submissions smoother. Know the forms. Using the TREC Short Sale Addendum and the Texas Association of REALTORS® Sellers Authorization to Release and Advertise Certain Information as well as understanding how the Short Sale Addendum affects elements of the sales contract is vital to effectively facilitating and managing a short sale. As with any transaction, proper use of the appropriate forms offers protection for you and your client. Be patient. Short sales are not easy transactions. They require patience, understanding, communication, and consideration. Remember that we are professionals and, regardless of the frustrations felt by us and our clients, we should always treat one another with respect and professional courtesy. Both clients win in a short sale. So should both agents. Steve Shatsky is a broker-associate and short-sale specialist for Keller Williams Realty-Dallas City Center. He has assisted clients with short sales for over five years and has developed and taught numerous seminars and classes on short sales. Visit his website at www.HomeSalesRemedy.com Contact him at steve.shatsky@homesalesremedy.com. This article originally appeared in the May Issue of Texas REALTOR Magazine.

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Make Sense of Short Sales