In today’s challenging market, most listings are likely properties that require short sales. First Premier Real Estate Group is well aware of this fact and we are willing and able to help!

We have designed a system for you that will allow you to concentrate more time on getting listings, getting more commissions and saving your precious time! This site will allow you and your client (the homeowner) to download all the required documents in the short sale process. This will not only save you time by immediately getting the information, but it will also save your client money from lost interest by having lender specific short sale packages right at your finger tips!  Another huge feature for your client is the fact that they can view the status of their short sale in real-time while you focus your efforts on getting your property sold!

When you get a short sale listing come back to this website, login to your account and immediately download your specific short sale requirements. Gather all the documents including your end buyer contract and then upload them to the site and let First Premier Real Estate Group handle the rest.   If you don't already have an account, click here to create your account now! It's absolutely free.

Typical Short Sale Requirements (to be collected from the homeowner)

  • Hardship letter – which states what happened to cause you to fall behind, when it happened, and what you’re doing to fix the situation
  • Financial worksheet – a breakdown of all your income and expenses
  • Your last month of pay stubs or a recent profit and loss statement if self-employed.  If you can’t provide either of those then you’ll need a signed and dated explanation of why.
  • Your last two months of bank statements
  • Your last two years of tax returns (the first two pages only)
  • Purchase and Sales Agreement and a listing agreement

Before we can start on the short sale, we will need to collect the necessary paperwork from the seller.  This includes a third party authorization, purchase and sales agreement, and hardship letter, among others depending on the lender.  In most cases we’ll also need a listing agreement.  Once we have those documents we will be able to start the short sale.  Once the process has been started you’ll be able to follow up on it whenever you want by just logging into your account.

Once you have an offer, you will want to keep the property on “SHOW” status until the property is sold and closed. Keep marketing the property for back up offers.  The reason why you want to do that is just in case the buyer either can’t get financing or decides they no longer want the property.  Another reason for this is that you may come across a higher offer, which would “Net” the Foreclosing Lender a higher amount!

In today’s credit crunch where financing is getting more challenging, pre-screening your end buyer is extremely important, so when you receive an offer, make sure to pre-screen the buyer!

Look into the following items:

  • How quickly can they close?  Lenders do not typically provide more than 30 days after written approval to close.
  • What type of financing is it?  Some types of properties won’t qualify for conventional or FHA financing.
  • Has the area recently been flagged as a declining market?  If it has been delegated as such an area the buyer will need to have a minimum down payment of 10% to get PMI (Private Mortgage Insurance).
  • How much of a down payment is the buyer contributing?  The higher the better.
  • Are they getting financing from a mortgage broker or a direct lender?  This is important for two reasons. 1) it will take less time to process if it is with a direct lender, and 2) in today’s market many mortgage brokers are having a tougher time getting loans closed.

It is very important to explain to the buyer that the closing process greatly relys on the schedules of each foreclosing lender and seldom is on their time frame. Typically, the lender(s) will grant as much as 30 days for the buyer to close after written acceptance is generated.  If the buyer can’t do this, then make sure to determine that up front so another offer can be considered!  There is no reason for anyone to waste their time with an offer that won’t close!

In addition to working with the homeowner, you may also need to meet the BPO agent or appraiser at the property when the lender(s) conducts their BPO/Appraisal.  This part of the process is extremely important!  This value has to come in as close to your offer as possible in order for the lender to accept a short sale.  Make sure to have a copy of the current offer as well as some of the closest comps you can get.

Create your free account today to start submitting your properties!