HOW-TO: Submit a ShortSale Offer

HOW-TO: Submit a ShortSale Offer

Many of us have seen "ShortSale" or "Pre-Foreclosure" properties for sale through the MLS, but are unsure of the next steps, or how to market these properties to prospective Buyers.

As you may or may not know, most ShortSale Lenders will require the Property to be listed on the MLS, prior to entering the Homeowner into a ShortSale program.   Because of this, it's safe to assume that any "ShortSale" or "Pre-Foreclosure" Property listed as "Active" in the MLS is waiting & ready for an offer.  Once a viable offer is received, many Listing Agents will change their listing to "Pending," and will only accept Back-ups.  Knowing when & how to submit your Buyer's Offer on a ShortSale property is absolutely vital information.

1. Inform the Buyer about what a ShortSale is, the processes involved, and the associated Time-Frames.
2. Find prospective "ShortSale" or "Pre-Foreclosure" property on MLS.
3. Schedule an immediate showing (within 24-48hrs).  **Most S/S Properties are GREAT deals, and will not last.
4. Acquire pertinent information from Listing Agent.  (Lender, # of Liens/Mortgages on Title, Type of Loan, etc).
5. Inform & discuss situation with Buyer, and how to structure their offer so as to have best chance of success.  **Some Lender's Investors will only allow a certain amount for Concessions, and some will only allow concessions under certain circumstances.
6. Acquire Buyer's "Proof of Funds," or "Pre-Qualification Letter" from their Mortgage Company.
7. Submit Offer & "Proof of Funds" to Listing Agent as quick as possible, so as not to lose the deal.
8. BE PATIENT!  **Do not be fooled by the term "Short;" most ShortSales will take months to facilitate.

Keep in mind that the Loss Mitigation worker who reviews the Offers, will have literally Hundreds of other files on their desk, and will not waste time on insufficient offers.  If the Offer is not at least worth reviewing, the Lender will issue an immediate "NO."  If your Buyer has submitted a decent/good Offer, it is typical to not get a response for a couple weeks, so don't get discouraged!