Agent Short Sales
Loss Mitigation Services Brings Your Listings to a Close
Our professional negotiators will help to facilitate your short sale listing faster by eliminating the wait and aggravation associated with short sales. We help agents take advantage of the surge in short sale property listings by negotiating with the banks. We will help your listings close!
The Loss Mitigation Services Advantage: SPEED
Why We’re Better Than the Rest
|Them: Other short sale specialists complete tasks sequentially, finishing one before beginning another, taking longer to finish a transaction.||Loss Mitigation Services, LLC Enhanced processing systems allows us to work simultaneously to reduce wait time. Short sale transactions are completed FASTER.|
Why Does the Short Sale Process take so long?
Answer: The time involved in completing a short sale is dependent on the following factors: (1) Lender/Servicer, (2) Investor, (3) Seller, and (4) Processor.
The real estate market has been a disaster for major lenders/servicers since 2007. In addition to record default rates, they’ve also had to deal with the logistical nightmare of processing hundreds of thousands of delinquent accounts. The sheer scale of the real estate meltdown is trumped only by the effort & resources needed to clean it up.
Loss Mitigation “Buckets” by Lender Preference
- Refinance – HARP
- Loan Modification
- Short Sale
The bank’s primary objective is retention for the borrower: if the borrower stays in the home the lender is likely to continue to receive payments.
The bank requires verification from the seller in writing & often times over the phone that they are foregoing home retention for a short sale.
Sellers often ignore communication from the bank making it impossible to move forward in the short sale process.
Trouble shooting tip: if an offer has been made & it’s more than 3 or 4 weeks before a BPO or an appraisal has been ordered, the bank is likely looking to hear from the seller or missing paperwork. Retention is the primary objective for the bank.
Fannie Mae & Freddie Mac require an “Authorization to Participate” in order to move forward with a short sale; they also require a formal appraisal in order to issue approval. The process is a bit more technical than dealing with a standard investor. Va loans require a “Compromise Sale Agreement Application” to be completed prior to processing a short sale; this too adds an additional layer to the short sale process. Private investors are typically easier to deal with, but their processes aren’t as clear cut as those of Fannie, Freddie or VA.
Key Items to Identify with the Seller:
- In default?
- Primary residence or investment property?
- Does the seller have assets – bank accounts, retirement savings, etc?
- Multiple Liens?
- Taxes, municipal works?
A motivated seller is an asset in a short sale; an unmotivated seller can break the deal. Identifying which is which can save a lot of time & effort.
Experience counts! A processor needs to have a thorough understanding of the lending process in order to effectively understand the short sale process. Short sales are made or broken based on ‘net’ proceeds to the lender/investor. Buyers can spin their wheels if the ‘net’ concept isn’t understood by the processor.
Volume: short sales are time intensive & paper work heavy transactions. The processor must take this into account & staff accordingly.
Equator: a processor must be an experienced equator user. Equator is currently being used by all of the major servicers to manage short sales. Equator is a sophisticated piece of software; not understanding its use can lead to poor results.