Broker Short Sale Info

This page was created for Buyer's Agents/Realtors that have questions in regards to our experience in negotiating Short Sales as well as our process for negotiating Short Sales.

Experience

We have been negotiating Short Sales for the last 5 years. All of the Short Sale negotiation is done "in-house." We do not send any of our files to a 3rd party negotiation company.

Results

We have closed more than 120 short sales in the last 3 years (65 in 2008). Nearly 90% of our business is currently Short Sales. More than 90% of our Short Sale listings successfully close. While we will never guarantee that we can close every Short Sale (and you should be leery of anyone that says they can), we strongly believe that if it is a deal that can be done, we will get it done!

Process

Prior to taking a Seller's Short Sale Listing, we collect the "Seller's Financial Package" from the client which entails all of the information their bank(s) will ask for. Once the listing is in MLS, our process is as follows:

Week One: Put listing in MLS, send complete "Seller's Financial Package" to bank.

Week Two: Verify that bank has received all paperwork and work on getting a negotiator assigned to the file.

Week Three: Get the negotiator at the bank to review the file and/or complete the set-up process and work to get the Broker's Price Opinion (BPO) ordered.

Every effort is made to get the BPO ordered before an offer is even received. Most 3rd party Short Sale negotiation companies will not begin working on a file until an offer is received. Our goal is to get as much done with the bank as possible before an offer is received, in order to cut down on the length of the Short Sale process.

If you are interested in knowing where we are at with a particular listing before you show / preview it, please take a look at the current days on market that is listed on the MLS listing. Based on the number of days the home has been active in the MLS, you will be able to determine what action has been taken on the file.

***Please do not call and ask us "where we are at" with the Short Sale Process before showing our listing. If after seeing a listing you and your client are interested in writing an offer, we are more than happy to give you the specifics on the file.

Frequently Asked Questions from Realtors:

How much is owed against the house?
While this question sounds good and is normally asked very innocently, what is owed against a home is irrelevant. The bank is only concerned with two main things:
 
(1) Market Value of the Property
(2) Amount of the Offer
 
Banks do not make their decisions on how much they are losing in a particular Short Sale transaction. When a bank takes a home back through foreclosure, they do not turn around and try to sell that property for the amount they were owed, they simply sell it for what its current market value is or a small discount below current market value. The same is true with Short Sales.
 
How do you know the bank will accept our offer?
We really don’t know with 100% certainty that the bank will accept your offer. What we do know, is that banks are typically willing to accept an offer that is within 85-90% of current market value. We price all of our listings very appropriately so if your offer is at or very near market value, we feel confident that if it is possible to get the Short Sale approved.
 
How long does the Short Sale process take?
The actual negotiation/approval process can take as little as 2 weeks or as much as 3 months.  On average most Short Sales take between 30-60 days from the date the offer is presented to the lender to the date of the Short Sale approval. In most cases, 60-90 phone calls and faxes back and forth between the lender and our team are required. Once a Short Sale approval has been received from the bank, the Buyer should be prepared to close escrow within 21 days.
 
Is there a Foreclosure sale date scheduled?
Foreclosure sale date information is public information and can be found by doing a small amount of research online. We get several foreclosure sale dates extended every month so please don’t ever let a sale date scare you away from one of our listings. We have gotten sale dates extended less than 30 minutes before a property was supposed to go to foreclosure auction.
 
Is the property still available? / Are there multiple offers in to the bank?
If the property is listed as Active in the MLS, it is Active and still available. If there are remarks in the private remarks section of the MLS there might be an offer submitted.
 
We do not send multiple offers signed by the Seller to the bank. Contrary to how some agents handle Short Sales, it is our firm belief that sending multiple offers in to the bank only confuses the bank and slows the process down. The banks have a hard enough time reviewing one offer – sending them multiple offers is not the way to successfully close a Short Sale!
 
We of course have a responsibility as Real Estate Brokers and Realtors to present all offers to our seller. If you submit an offer it will always be presented to our Seller for their review. Please understand though, that we will coach them towards not sending multiple offers to the bank because based on our experience this is not the best way to get a Short Sale approved. 
 
Is there anything else I should know before submitting an offer?
Yes. Please submit/include the following forms/information with your offer…
 
(1) Please call us for our customized Short Sale Addendum.
(2) Always include a preapproval letter (yes, the bank wants to see it)
(3) Please use Cascade Title as the Title/Escrow Company - co/ Gina Larson. Phone (541) 687-2233. Fax (541) 485-0307.

 

Contact Information

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Harpole Real Estate Group
Keller Williams Realty
2644 Suzanne Way, Ste. 100
Eugene OR 97408
541 343 7653
Fax: 541 302 7669
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Harpole Real Estate Group 541-343-7653.  Each Office Independently Owned and Operated. Licensed in the State of Oregon.