PROView - January 2008 - (Page 24) Are Your Prepared to Manage a Short Sale? continued from page 6) sales – any such changes may lead to lost time by having to reestablish communications and catching up to new requirements and procedures. Regardless of whether you have an offer or not, staying in touch with the loss mitigation department weekly or bi-weekly is essential. “I recommend updating your contacts on any listing activity, or inactivity, or price change. It is also important to keep the lender’s representative aware of the current conditions of your specific marketplace,” suggested Banville. Specific materials you may want to provide may include news articles describing the local real estate market, or any available statistics provided by the Suncoast MLS. Once a contract has been signed, next on your list of tasks will be to submit the full short sale package subject to the lender’s approval. Once a lender approves a short sale, they will issue a payoff statement in writing. Next, the title company you work with will create a preliminary HUD form, which you will need to give to the lender. According to Luttmann, you need to speak directly with the lender’s loss mitigation department. At this point in the process, you, and the client are at the mercy of the lender. Your commission may be scrutinized and possibly changed. Once the package has been received by the lender, the case will assigned to a negotiator who will then review the package and will order a BPO (Broker’s Price Opinion) or appraisal from a third party to determine the fair market value of the property. “The BPO is the most important aspect of the short sale process as this determines the number from which the lender will negotiate.” She added that the lender is more concerned with the market value rather than the money owed on the property. Banville added that the evaluation should include the interior and that you as the listing Realtor® are listed as the point of contact for entry to the property. Once the lender has assessed the value, negotiations begin where they will accept, deny or provide a counter-offer. Banville compared the negotiation with a lender to a boxing match - expect multiple rounds before you come to a final agreement. Once a lender accepts the contract and signs off on the short sale, you will need to notify all parties about the settlement. Once you’re reached this point in the process, you essentially complete the transaction just like you would for any other listing. 24 PINELLAS REALTOR® ORGANIZATION Steps to a Short Sale REALTOR LENDER TITLE COMPANY Identify a short sale Request permission for short sales by all owners, obtain lender information & receive permission to contact lender/s. Prepare listing package List property in the MLS Receive and execute offer Prepare preliminary HUD Submit short sale package Broker’s Price Opinion (BPO) Response to offer (counter, accept, decline) Negotiate Payoff in Writing from Lender Completion Close transaction January 2008
Table of Contents Feed for the Digital Edition of PROView - January 2008 PROView - January 2008 Contents Chairman's Notes Feature ProActive Marketing Finance Marketplace Analysis Home Sales Report MLS Update MLS Mind Your Manners Education Calendar of Events & Programs PROBiz Special Feature Brokerage Design New Affiliates and Members for 2008 PROView - January 2008 PROView - January 2008 - PROView - January 2008 (Page Cover1) PROView - January 2008 - PROView - January 2008 (Page Cover2) PROView - January 2008 - Contents (Page 1) PROView - January 2008 - Chairman's Notes (Page 2) PROView - January 2008 - Chairman's Notes (Page 3) PROView - January 2008 - Feature (Page 4) PROView - January 2008 - Feature (Page 5) PROView - January 2008 - Feature (Page 6) PROView - January 2008 - ProActive (Page 7) PROView - January 2008 - Marketing (Page 8) PROView - January 2008 - Marketing (Page 9) PROView - January 2008 - Finance (Page 10) PROView - January 2008 - Finance (Page 11) PROView - January 2008 - Finance (Page 12) PROView - January 2008 - Finance (Page 13) PROView - January 2008 - Marketplace Analysis (Page 14) PROView - January 2008 - Home Sales Report (Page 15) PROView - January 2008 - MLS Update (Page 16) PROView - January 2008 - MLS Mind Your Manners (Page 17) PROView - January 2008 - Education (Page 18) PROView - January 2008 - Calendar of Events & Programs (Page 19) PROView - January 2008 - PROBiz (Page 20) PROView - January 2008 - Special Feature (Page 21) PROView - January 2008 - Brokerage Design (Page 22) PROView - January 2008 - Brokerage Design (Page 23) PROView - January 2008 - Brokerage Design (Page 24) PROView - January 2008 - Brokerage Design (Page 25) PROView - January 2008 - New Affiliates and Members for 2008 (Page 26) PROView - January 2008 - New Affiliates and Members for 2008 (Page Cover4)
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