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Short Sale Tip : Prequalifying Your Short Sales

Effectively pre-qualifying your short sale transactions is the single biggest step you can take towards achieving financial success. Doing a short sale is more than just finding a homeowner with a hardship.

Our short sale pre-qualification form will help you gather the information you need. The analysis of this information you collect will have a four-point focus:

• The Borrower

You will need to understand the borrower's situation and how they got there. The lender will look at the income, the income source, the borrower's assets and their liabilities.

If you have a life event or hardship (illness, injury, job loss, divorce, etc.) that is responsible for your situation, can you document it?

• The Loans

At the price that you expect the property to sell, who gets what? Is there sufficient net proceeds to pay off the first mortgage? If not, how big is the second and how short is the first?

You need to put the numbers together and come up with a plan aimed at getting approval from a lien holder who will need to discount their note.

• The Lenders

Simply put, not all lenders are created equal. From one week to the next you will find changes in the way lenders behave. We will help in this area, as we work with most lenders daily.

• The Property

This is where you must use your market knowledge to determine if you have a deal that can be approved and closed.

Look at value relative to the neighborhood market. If you have a property that, due to design location and or general appearance, is lower than 20 percent of the neighborhood, think hard before taking the listing. The lender's BPO will likely be higher than you can sell the property for and those are tough fights to win. Look at the condition of the property; is it badly dated or poorly maintained? Will a buyer in this market even consider purchasing it close to a price where the BPO is going to come in

 

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