5 Tips to Working with Banks on a Short Sale

Now often times real estate professionals and buyers are scared of submitting offers on short sales because of the fact that banks are involved and the time frame that they take. These situations can often be beneficial for the buyer, seller, and the bank. Banks do not want to go to foreclosure. I know we have stated that in previous posts but they do not. It costs them more money, time, and effort to go to foreclosure. As banks work on their process of short sales there are things you can do as a buyer, a seller, and have your real estate professional do that will help improve the process for everyone.

5 Tips to Working with Banks on Short Sales

1. Have a well documented offer - An offer from a buyer must be so complete that there are no questions that can be asked that an answer is not readily available. Make sure that the buyer has taken time to get pre-approved. Ensure that they submit credit scores (with sensitive data deleted), bank statements, and any other information that a lender would want to do. They want to make sure that things go through successfully.
2. Communicate with the bank regularly and kindly - Banks have people who work for them who are people and not robots. Be kind and call at least once a week to see if anything is needed or missing. This is generally done by the seller or the listing agent as they are the ones who generally have signed authorization to speak to the bank.
3. Make sure the sellers packet is complete!!! - Nothing is worse than having the seller forget to give ALL their information to the bank. Ask the selling agent if the sellers packet is complete and ready to submit.
4. Be patient - The banks are assisting many home owners and are working hard at things. Understand that these things take weeks and sometimes longer than promised. If you are the agents regularly communicate
5. Be Understanding - This is for all parties involved. More than likely commissions will be reduced, repairs may not be authorized or approved, and time frames will extend. It is still a situation that helps out all parties and prevents foreclosure.

These tips will help make the short sale experience as pleasant as it can be for all parties involved.