Jennifer James

Short Sale Tips from Richmond VA. None of these tips are exact, every lending institution is different. Here are a few tips I have learned over the past few years as a Short Sale Agent in Richmond, Virginia.

When I meet with potential short sale client I ask "Why do you want to short sell?", "What do you know about the short sale process?" "Are you patient?" "Are you ready for a few headaches?" These questions tend to break the ice and allow you to prepare them for what to expect.

Then I ask..."How did you end up with me at the kitchen table?" I am direct and this information is necessary. When working on a Short Sale you need honest answers, you need to know if it is a divorce, failed business, medical bills, job loss, etc. The facts will determine if your sellers have a hardship the bank may consider. The specific details will be used to write the hardship letter. Short Sales are Hard Work! You want to know upfront if they are willing to help you, help them.

At the initial meeting I ask the seller to provide copies of all documents the lender may need:

• Authorization from Borrower/Seller (some lenders require their own form and some have a dedicated fax number for authorizations)
• Financial Information Form (I use a generic form)
• Copy of Mortgage Coupon(s)
• Ask if they have PMI (Very important)
• Copy HOA Coupon for HOA (if any)
• Copy of Paid or Delinquent Property Tax Statement
• Copy of last 2 months Pay Stubs or Profit and Loss Statement, if you are self employed
• Copy of last 2 months Bank Account Statements (checking, savings and stocks)
• Copy of two years Tax Returns (look over these...make sure nothing stands out, the banks will find it)
• Initial draft of Hardship letter

As soon as we receive a contract I work on:

• Agent Cover Letter I use BOLD TYPE and CAPS for Key facts. I include: the current market, the sellers situation, how many days on market, the number of showings, the feedback from showings...Keep it to ONE PAGE)
• Listing Agreement
• MLS Print Out
• Purchase Contract
• Pre- Approval
• Copy of Deposit
• Updated CMA supporting the listing price
• Copy any supporting documentation for value (newspaper articles, graphs, pictures etc)
• Settlement statement prepared at offer price
• Any other information that will help the case

When I send the package to the lender

• Send the entire package. (Do not send until you have everything!)
• Put labels on each page, in order with the sellers last name and loan number

Short Sale Tips :

• The Lender will order a BPO (Broker Price Opinion.) This BPO will be completed by a real estate agent. The agent will call you or the seller to get access to the property. They are being paid a minimal fee ($50.00 to $150.00) I even know agents in Richmond that do BPO's for free, they are promised an opportunity to get future REO listings. It is in your best interest to help this BPO agent. Make their job easy; provide them a copy of the contract, comparable properties, your CMA, pictures, any important facts...Meet them at the property if you can.
• I have the sellers attorney order payoffs, verify taxes and additional liens
• I recommend the purchaser to use the seller's attorney.
• Keep marketing the home (keep a list of potential back up offers.)
• Keep the buyer's agent informed.

Short Sale Tips:

• Be nice
• Smile (yes, I know they can't see you) make simple conversation...while they are looking up the account.
• Keep in mind, the bank representatives are getting yelled at most of the day. Be the highlight of their day, they may just help you. Some of them want to help.
• Most of the time they have no ability to fix your problem. Ask for what you need, ask if who can help you? Ask what other departments exist? If you don't like what they have to say...Call back! You will get someone else and they might know more.
• Write down the number you called, the time you called, brief description of conversation, any dates you were given, what the next step is, when you should call again, if they have set a foreclosure date, etc.
• Every time you speak to the Lender ask for:
  • Name
  • Title
  • Email

Bank of America Short Sale Tips (I have done so many...they get their own category.)

• Send you authorization to the special authorization number (1-888-491-4947 or 805-520-5019)
• Send it again!
• It will take 5 to 7 business days to scan and load to the seller's account
• When they can't find it...ask them the to look in the file rolodex
• If they still can't find it ask them to try and add you to the account...
• If they still can't find it...ask if you can conference call the seller and get them to allow B of A to speak to you (This approval will only be good for that call)

Equator Tips

Equator is new automated system Bank of America using for Short Sales. This system is a step in the right direction .

Email sent to sellers:

Dear Mr. Smith

Welcome to the Bank of America short sale processing system. Please go to www.BankofAmerica.com/ShortSale and enter your user name and password to begin.

*side note: The automated email Bank of America sends the seller to use is incorrect.

Direct them here https://shortsale.bankofamerica.com/

Short Sale Tips to be continued....This list is getting long. Stay tuned for Short Sale Tips Part 2

Thank you for reading & Happy Short Selling!

Jennifer James

How I sold a house using Skype (tm)

My story about how I used Skype with clients that live 14 hours away.

Mr. & Mrs. New Home Buyer closed on their new home and the wife saw it (live) for the first time 15 minutes before closing. Yes, they are still married and she loves the house!

I consider myself to be a pretty good computer nerd, but I never had the need to use Skype until I met Mr. & Mrs. New Home Buyer. Mr. & Mrs. New Home Buyer lived out west, they had sold their home and wanted to move somewhere with definite seasons and wanted to move in 30 days. Mr. & Mrs. New Home Buyer decided Virginia was where they wanted to move. They found my team online and I was thrilled. After a couple of conversations, customized MLS search set up, recommendations marked, Mr. Buyer, Mrs. Buyer and 2 year old daughter were coming to see a few homes we had selected in their range. Great...then they started to look at flights, rental cars, hotels...etc..Change of plans. Only Mr. Buyer was coming. Not so, Great! How am I going to have them in their new home in 30 days? I knew Mr. Buyer and his wife currently use Skype to keep in touch with extended family and had the software installed on their home computer.

Two days later Mr. Buyer flew into Richmond. We had three days to see 30 homes. Mission accomplished, we saw most of them and found the "one." Now, here is where we decided to think outside the box! I had Skype installed on my laptop and we decided to call Mrs. Buyer using Skype. (At the time, I was thinking...I hope this works) I carried my computer with web camera installed all over the house Mr Buyer loved. Wow, Mrs. Buyer was so excited! Mrs. Buyer was able to see what the view was of her back yard from the kitchen window, what the neighbors homes looked like from the front porch, the amount of space in the 3^rd floor that was unfinished, the HUGE master bedroom closet (the pictures from the MLS did not capture.) She knew it was the house for her. We submitted an offer and after a few counteroffers Mr. & Mrs. New Home Buyer had a ratified contract! Then we did the home inspection the same way. The inspector went over the summary and I walked around the computer and showed Mr. & Mrs. New Home Buyer the couple of items the inspector found. They closed on time! Mrs. Buyer and her daughter loved the house Mr. Buyer picked.

The Real Estate Market is changing and so are our client's expectations. I can't wait to see what is next!

I would love to know what you are doing with technology! Please share a success story and we can learn together.

All the Best,

Jennifer James
(Real Estate/ Computer Nerd)
Hometown Realty

Short sales are changing

The current Short Sale process is undefined and drawn out. The number of homes listed as pending or under contract is influenced by the number of sellers waiting for an approval from the lien holder. Short sales are challenging and take time (months) I have sold 20 short sale properties in the past 2 years and every bank and process was different. One tip is to be very organized and ask for what you want and find out who can provide answers.

The process is getting ready to change...I am excited about this change and hope this will reduce the pressure on all parties.

The new rules will have a time line...not the current estimate or the never ending...I need two more weeks for the file to marinate on my desk..The banks must approve or deny in 10 DAYS!

The Banks, the mortgage investors, the second mortgage holders and the sellers all will receive financial incentives. This is great news...

For more information