Presented by: Lynn MadisonABR, ABRM, BPOR, GRI, SFR, SRES

Are they eligible?◦ They must have a financial hardship◦ Monthly shortfall

Are they willing to cooperate?

Do you have enough time?

Do a lien search

Are you in a recourse state?

Understand how deficiencies work

Understand federal tax ramifications

Cannot just ‘walk away’

Authorization to lender Authorization to disclose

short sale in MLS

Fannie/Freddie 710 Form

Assignment of contract

Giving power-of-attorney

Intentional damage of property

Creating ‘waste’

Sellers getting cash from buyers

Short sale ‘flops’

Price at low end of market value

Do not price based on what they owe

Do a CMA with a BPO attitude

Do not underprice

Schedule reductions

MLS – disclose it is a short sale

Say it’s HAFA approved if it is

Do not say ‘as is’ In agent remarks put – Only one accepted

contract will be submitted to the lender

Market it like a normal listing

Time frames

Elements of a good contract

Must have a reasonable chance of closing

Multiple offers? Can they buy both?

Mortgage approval – proof of funds if cash

Price

Earnest Money

Home Inspection

Mortgage Application

Attorney Approval

Ask the right questions

of the listing agent:

• Is the short sale package read for submission?

• What is the seller’s hardship?

• Has the foreclosure sale been scheduled?

• Do you have other offers?

Complete short sale package

Lender calls the shots on what and how◦ Really - it may be the investor not the servicer so

don’t assume because BofA or Wells asked for it one way last time that they will this time!

All at one time – not piecemeal

We are partners

This is not adversarial

Treat them with respect

They DO track you on former transactions Average large lender negotiator is handling

150 – 175 transactions at a time

Broker to broker

Broker to lender

Broker to clients

Client to broker

This is the new ‘norm’

Remember the book

Who Moved My Cheese?

They didn’t move our cheese – somebody ate it!

Do them right – or don’t do them at all