Ricky Khamis's Blog: SHORT SALES SHORT SALE WHAT DO I DO NOW

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SHORT SALES SHORT SALE WHAT DO I DO NOW

Hey I thought you could really use this, it is the very first step in the process of buying/selling a short sale.  The Seller of the home MUST get approval from the bank to "consider" a Short Sale. Some "specialists" will tell you that it is already approved prior to having a contract, I can tell you that I have done several and NONE were approved up front for a price, they we approved to take an offer and send it in.  Questions you will want to ask:

 

•·         Have you spoken directly to the bank yet?

•·         Have you filled out your modification package?

•·         Did you send it back to the lender?

•·         What is the sale date (which you probably will already know?

•·         You will need to have them (assuming listing) get together all of their income documentation

•o   W-2s

•o   Paystubs

•o   Bank statements, 6 months

•o   Financial Statement

•o   Bank Short Sale Package

•·         When you have this information together you will send it to the bank with this authorization so you can take the bull by the horns and not rely on third party information, you are that information.

Then the fun begins:

•·         Have Comps run, and get all the pertinent data together to make a highly educated guess at what the BPO will come back in at, it is arguable and not sketched in stone.

•·         Take that number and generally the 1st lien will consider 80% +/- the BPO (so I am told).

•·         The 2nd mortgage will need, all of the above, plus a contract, HUD1 and proof of what you the agent has done to earn your commission.  Remember that you are negotiating with the seller NOT THE BANK...  I have seen 1st hand a 2nd mortgage accept 1500.00 on a 260k note!!  It is possible, and the agents earned their 3% each.

•·         ALSO - if you are the listing agent, communicate with the buyer agent, it is very frustrating to NOT know what is going on, this is avoided with a simple email, text message, Instant Message, telegraph, cell phone call, Pay phone call, note card pigeon... Many Many ways to communicate.

•·         What you ask do I do if I have a buyer purchasing a Short Sale?

•o   Explain up front the intricacies of purchasing this type of property, that through a little pain comes lots of gains.

•o   Ask qualifying questions up front with regards to the above information of the listing agent, find out HOW far in the process they have done.  Remember that nobody cares more about your income than you do, so don't let a rookie listing agent cost you an escrow because they took a listing and had no idea what they were doing (we've all seen this).

 

Hope this helps close some deals, good luck out there!

Copy and paste the information below into Word

Date:

  

Authorization to Release Information

Lender/Lien: __________________________________________________

 

Lender's Phone Number: _______________________________________

 

Loan/Account Number: _________________________________________

 

Property Address: ______________________________________________

 

Legal Description: _____________________________________________

 

Borrower: ____________________________________________________

I/we hereby authorize you to release to INSERT NAME and INSERT COMPANY, its

Employees, officers, agents, and assigns, any and all information they may require for the transfer or payoff or settlement of my/our loan/account for the above referenced

property. "Agents" includes all real estate agents, closing agents, attorneys, employees of INSERT NAME and their assistants. You may reproduce this document to acquire

reference from more than one source.

 

_______________________________________ ___________________

Signature Date

 

_______________________________________ ____________________

Social Security Number Date of Birth

  

  

Contact Information:

INSERT NAME, INSERT COMPANY NAME

INSERT COMPANY ADDRESS

Phone: (480) 555-1212 | Mobile: (480) 555-1212 | shortsales@getemsold.net

Ricky Khamis, CMPS
Certified Mortgage Planning Specialist
On Q Financial
"Mortgages Simplified"
1820 E. Ray Road, Suite A-101
Chandler, AZ 85225
Ricky.K@onqfinancial.com
Office 480-305-6232
Cell 602-758-7425
Fax 480-305-6282

For pre-quals, questions about files in progress, pricing or programs:
Crystal Bailly - Personal Business Manager
Direct 480-305-6233
Crystal.bailly@onqfinancial.com

 

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Ricky Khamis
NMLS 173141 | LO-0911814 | CA-DOC173141
Branch Manager | Corporate Office
Arizona and California CE Instructor

Email: Rick@amerifirst.us

480-344-1900 office
602-758-7425 mobile
480-339-1615 fax

AMERIFIRST FINANCIAL, INC.
NMLS 145368 

1550 E. McKellips Rd, Suite 117
Mesa, AZ 85203
480-344-1900
1-866-276-12974
BK0013635

 

Amerifirst Financial Disclosure-  The opinions expressed here are the personal opinions of Ricky Khamis.  Content published here is not read or approved by Amerifirst Financial before it is posted and does not necessarily  represent the views and opinions of Amerifirst Financial.

Comment balloon 4 commentsRicky Khamis • April 23 2008 12:24AM

Comments

Ricky looks like you really got a handle on short sales. Thank you for the tips.
Posted by Scott Barr, Realtor (Pacific Sotheby's international Realty) over 12 years ago

WOW, finally someone who makes it a process and not someone trying to sell me the tips!

 THANKS!

Posted by Lynn Ikle' (Redfin) over 12 years ago
Looks like you're putting your knowledge of Short Sales into good use on your own home. Nice $300,000+ loss.
Posted by Neighbor over 12 years ago

Tell me about it! Thank you for pointing that out though I wasn't aware of the 400k! loss and the extra

100k I put into the house, yeah forgot all about it until you reminded me, thanks again.

Posted by Ricky Khamis, NMLS 173141 | CADOC 173141 - 480-339-1565 (Amerifirst Financial, Inc. (NMLS #145368)) over 12 years ago

Participate