Paso Robles Real Estate

Short Sale List for Realtors(R)

Paso Robles CA Short Sales

If you are considering a short sale on your Paso Robles home, here are some of the items your Realtor needs to be discussing with you. Short sales can be complex and frustrating. Working with a professional real estate agent can help reduce your stress and frustration.

• Discuss pricing with clients based on Comparative Market Analysis
• Direct clients to CPA or accountant for tax advice
• List the home the same way you do any other home
• In addition, use California CAR Form SSL, Short Sale Listing Addendum, and SSA, Short Sale Addendum
• Put in MLS Agent Remarks, “Short Sale”
• Put in MLS General Listing Details, “Short Sale – See Rules”
• Get fax number of lender and send an Authorization to Represent Seller signed by your clients
• Prepare seller for documents that will be needed to submit with hardship letter and accepted offer: last 2 years taxes, hardship letter written and signed by clients, 2 months pay stubs, financial worksheet put together by clients showing income and expenses, W-2′s and 1099′s for previous 2 years
• Make sure you at least have the last 4 digits of your seller(s) social security numbers
• Call lender(s), ask for Loss Mitigation Department and ask what they need in the short sale package
• When you are able to speak with the Loss Mitigator assigned to your file, ask if you can check in with him/her once a week. Be nice to the Loss Mitigator. This can make all of the difference in the world.
• Send above documents to the lender(s) when offer has been accepted by the seller(s), along with copy of Listing Agreement, copy of Residential Purchase Agreement, Estimated HUD-1 from escrow company, copy of buyer loan prequalification letter, copy of deposit check written to escrow company, copy of Comparative Market Analysis, a copy of your marketing strategies, a cover page and any other documents requested by the lender. Be sure package is complete before sending and that all documents are tabbed in a folder. It is best to use stickers to put the name, address and loan number on each individual page so that if a document drops out of the file, anyone finding it will know what file it belongs in. Make life as easy for the Loss Mitigator as you can. If there is a first and a second on the property, be sure to make 2 complete copies – one for each lender. Send hard copy to lenders by Registered Mail with signature required.
• Call lender(s) to make sure they received your package and ask how long it will be before your file will be assigned to a negotiator
• Use ALL of your marketing strategies to find a buyer for your clients
• Remember, your seller(s) can only accept one offer, and it is the seller(s) decision which offer to accept
• Accept whatever offer your seller(s) choose contingent upon lender approval
• You can accept backup offers, but seller(s) do not sign these. Hold them in your office in case the accepted offer isn’t approved by the lender(s)
• Don’t open escrow until you have lender approval

Remember, the lender(s) are hoping to receive an offer close to fair market value.

If there is a second on the home, ask the lender holding the second whether they have an insurance policy on this loan that pays them if the home is foreclosed upon. If they do, they probably will not agree to a short sale. Ask for the amount of insurance… This may save you from wasting your time and money marketing a property that has no chance of being sold as a short sale.

If foreclosure proceedings have already started on the home, call the lender(s) and ask who is handling the foreclosure. Tell them the home is an active short sale, and ask them to notify you of any trustee sale date.

Foreclosures and short sales are rising in the Paso Robles area. The best advice for anyone facing a short sale situation is – get proactive NOW!

If you have any real estate questions or general questions about San Luis Obispo North County, please contact me via email, call me at (805) 235-0234 or visit my website for more information.

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Tags: CAR, comparative market analysis, CPA, hardship letter, loss mitigation department, loss mitigator, short sale