The recipe is really quite simple. 

Ingredients:

1.  A home

2.  A slow real estate market
3.  A mortgage on the property
4.  The need to sell (can be job loss, medical etc.)
5.  For extra spice add a depreciating market

Directions 

Take a property where you owe more then its worth and slowly add in a slower real estate market (with possibly some depreciation if you can handle the spice--sometimes you don't have a choice it is just spicey).  Combine that with the need to sell --and you should have just the right mix for a short sale.  Now all you have to do is cook it up with the lender. 

So how do you cook it up (convince) the lender a short sale is the best option for all? 

  
  I’m glad you asked.  

   Here’s how:

Hire an agent who has done short sales. 

That’s it.  Not as hard as you thought. 

How do you find that agent?  

The same way you find most things -- Referral or the web.  The web is where I start any type of search so that’s a good place to start.  You’re reading this blog entry so you know how to find the info.  Now the agent you find should be able answer a few questions:

 
1.  How many short sales have you done?  (the answer better be more then a few and it better not be something nebulous like it seems like a thousand—get a real answer).

2.  How many are working on now/how many short sale listings do you have now?  (again it better be more then a few etc)

3.  Do you have specialized training in short sales/loss mitigation?

4.  Do you have specialized forms to use in your marketing/negotiating? 

5.  Do the members of your team understand the ins and outs of short sale?

6.  Will you still market the home even though it is a short sale?

7.  When we get an offer will you continue to market the home?

Get answers to these questions that you like and you should be good to go.


Because I know people will ask here are my answers to the questions:

1.      It seems like a thousand (just kidding!  Wanted to see if you were paying attention).  We have closed about 15 in the last year plus we have done about  a dozen loan modifications for people. 

2.      I have 4 short sales in negotiations and 4 listed for sale.  I also list bank owned/REO property so I understand what drives the banks (not always $ as we see $) 

3.      I am a trained loss mitigation consultant and I have helped dozens of people do short sales or loan modifications (see my article here about loan mods etc).  I don’t charge for the loan mod consultation services by the way so if you need help call.  I’m currently the V.P. of the local foreclosure prevention group—Pikes Peak Foreclosure Prevention Partnership (PPFPP).  We currently get hundreds of calls every month on our hotline.

4.      Yes we have developed many forms over the years that help us have an edge not only when negotiating but also when working with an offer.

5.      My transaction Coordinator (TC) is well versed in short sales and will be deeply involved in the process.

6.      Yes I still do my standard marketing plus a little more.  If you need a detailed listing of what I do let me know.

7.      Yes for a while at least.  Once we have bank acceptance we usually change the status of the property to pending in the mls.

That's the recipe in a nutshell. 

I’m here to help.  Even if you just have questions feel free to call or email.