Hold open houses in the neighborhood you'd like to work in (or property types you'd like to work with). It does not need to be your listing for you to hold an open house. It is better if the property is listed with the company you work for, but that's also not a requirement so long as you have the listing agent and owner's permission. Make sure all of your marketing has who actually has the listing (or what ever other requirements there may be). You'll find buyers and sellers that like the neighborhood or property type you like.
Now, to make open houses work for you, you canNOT just stick a sign in the yard and hope a bunch of buyers/sellers will show up. The more you work this, the better the results. Start 2 weeks (minimum) in advance (unless you're really quick at getting things done and know your way around a computer really well). Make sure there's not something special going on the weekend you decide to have the open house - like super bowl Sunday or some other big event that will keep people away from an open house on your Sunday.
ALERT THE INTERNET WORLD: Let's say you have NO money, zero, zilch. Then you get to work a little harder and smarter. When you get permission to market, be sure they know you will be marketing the heck out of this thing. You should run the marketing by the listing agent (and your PB) before it goes out just to be sure there are no errors. Post this listing to Postlets, RealBird, vFlyer, BearPrinting, and any other free sites you can (go to TackleRealEstate.com for more ideas). Some of these have open house features where you can post your open house and buyers can search for them. Be sure the listing agent posts the open house on RMLS and puts your contact info. To get going on these online listing sites you will need the following information/items:
-set up a good email account for yourself that you will use to create accounts and receive inquires. It’s best to set up a marketing account that can then forward to your main internet account. You may have myagentname@mywebsite.com but it will benefit you to have myagentwebsite@gmail.com (or other service provider). If you have control over your own email, then you might want to set up something like craigslist@mywebsite.com, postlets@mywebsite.com, etc. this way you know where the leads (and spam) are coming from.
-create the accounts (your photo, company logo, company info, brief bio, your web address, etc)
-listing info (MLS# and info, pictures, write-up info, it’s helpful if you’ve seen the home)
-create more accounts to post to (once you have posted a listing to the above you can then post to and these generally don’t need as much info)
If you have (and you should have) Facebook (best on your fan page), Twitter, linked in, active rain, a blog, your real estate website, etc be sure you post the opening there. Some of the listing sites offer widgets that can be utilized in lots of places. (Widgets are a bit more advanced and we’ll deal with that later.) From Postlets, RealBird, vFlyer, BearPrinting, and others you can post to craigslist, backpage, kijiji, ebay, google, etc. With Craigslist you should be able to post each version each day you post. You can generally post every 48-72 hours. These are all free and you should do ALL of them. Okay, you alerted the internet that you're holding an open house, now...
If you can print flyers (Bear Printing will print nice 1 sided color flyers for .19 each, or post cards for .12 each) then take the flyers to at least 20 or 30 neighbors (especially if you like their home). Yes, go to each house in the neighborhood, knock on their door, and tell them you'll be at the open house this weekend and if they know anyone who's been wanting to move to the neighborhood now's the time. It's a good idea to visit the house ahead of time and take your own photos to use for marketing - when possible (try and get them from the listing agent if not). If you do have $80-100 then you should also send post cards to the neighborhood with your picture on it. Send post cards to your sphere too or at least send them an email (more advanced… use mailchimp-free, constant contact, icontact, or other email system that you can see who's opened your email).
Make connections with others in the industry. Mortgage brokers, inspectors, contractors, title and escrow people, stagers, and more. Some will financially support your efforts if you additionally market them and/or their business. For example, you may be able to have the mortgage broker pay for the flyers that you prepare and give out if the back of the page or part of the front has their contact information and photo/logo. They may provide the food or other items of benefit.
The Monday before the open house, be sure there is an open house sign saying when the open house will be (ie: Sunday 2-4pm). On the day of, pull the flyers out of the box and bring them inside (or put them on your car seat so you remember to put them back when you're done). Have flyers prepared that have the home information on one part, your contact info on another (especially if you have a lead capture option on your website), and then include a list of what other properties in the area are available in a similar style and price range. Prepare a sign in sheet that asks for their name, if they're working with an agent, and their email and phone number. Have a stack of your cards available. After the open house be sure to thank the listing agent and be sure to give them the feedback you received about the house, including how many parties came through and if there is any interest in the property.
Be mentally prepared that you may not have anyone show up. It happens… even if you market the heck out of the property. It could be so over priced, in a bad location, on a day that your target market for this home is out doing something else. It could be that everyone that comes in is already working with an agent. If it happens to you, find a better home to hold open on the next weekend. Ask more questions, review the history of the home. Pick a different segment. Ask others why you may not have had a draw. Sometimes you can do everything right and no one shows up. This is the life of an agent, and it happens.
If you were able to capture leads email addresses or mailing addresses be sure you write to them and thank them for coming to the open house. If you have a drip system, be sure you add them to the appropriate one(s). A drip campaign is an automated system that emails, at an interval you set up, an email of your writing (or the systems writing if that’s what you purchased). So if you met a first time homebuyer, you might have the system send 4-6 emails over the next 3 to 4 months about tips for buying a home.
What else can you do to prepare for an open house or have available to visitors? Think about what you're already good at. If you're crafty, can you do create something to give to visitors to remember who you are and the home they've seen? If you can bake or make candy, then have little packages with your card attached and give them away. If you have value added information like the 10 biggest mistakes buyers make when buying a home or getting a loan that they can sign up for and you can email to them right after the open house. If you have a drip system option with your website or through mailchimp or other email system then be sure to add your visitors to your system.
Make sure you let everyone you know in town knows about your open house. Ask them to come and support you (especially if you’re a new agent). Having food there is always a plus (and I don’t mean just cookies and lemonade). Talk to some of the agents you’ve met in the office and ask them if they’ll stop by for the added support. If you’re working with a mortgage broker be sure you invite them too. Have your family and friends come (make sure they know the rules, like leave you to the real potential clients when they come in). Having lots of people to the open house creates more activity and gives you practice.
What other things can you do to make the marketing a success? How else can you get a draw to the open house? Brainstorm with others or ask experienced agents what they do. Google your options. Go to real estate websites like Realtor.net and other sites that might offer some helpful info. Check back at TackleRealEstate.com for more help.
Monday, February 22, 2010
Sunday, February 21, 2010
So what would I do if I were a new agent just getting started or if last year I didn't close at least $2m in sales?
First, there are so many ways that you can decide to work your business. You need to find your own grove and do what works well for you. Some may like cold calls and knocking on expired and FSBO doors, others may prefer to write blogs and work with a small group of people. BUT, you've got to do something. As a parent you may tell your kids that after they TRY a veggie and they don’t like it they get to pick two veggies that they don't have to eat, but all the other veggies the must eat. Same thing here. If you don't do something, you'll get the results that you put into it... NOTHING. So eat your veggies.
These ideas are not in any particular order. And just because you've done some of these things, it doesn't mean you'll be selling $2m from day one. You've got to work your business for your business to work for you.
KNOW WHERE YOU’RE GOING: Before you can get to where you're going you need to know where you want to get. Do you know what you want? One of the easiest ways to track how well you're doing is to pick a dollar amount in either sales commission or sales volume. So you want to gross about $50k in commissions a year, you'll need about $2m in sales ($2m times average commission less your split). That would be about 6 sales per year (depending on the average sales price of the properties you want to work with). What's important in figuring out what you want, you need to know what can get in your way of getting it and then figuring out how you're going to overcome these obstacles. Some obstacles you can prepare for, others jump at you when you least expect it. But as you get started, you know what's in your way. If you're experienced, you can look back and see some of what got in your way.
There are people thriving in this economic environment, so you don't get to use this economy as your excuse, but it is something to be aware of and figure out how you will be a value to others.
OK... Here we go
LEARN MORE: If you're new or not making $2m a year, you need to learn a thing or two. Attending classes at your office, with RMLS, PMAR, title companies, etc. are IMPORTANT. Just being around other agents that are doing things will help you as you are trying to find business or deal with the business you get. You can never know too much.
BROKER OPENS/TOURS: If you're new or haven't been out in a while, it's time to got to some broker opens. These generally happen on Tuesdays from about 10am until 2pm. Some have food :o) something good for new agents that are starving (or if you didn't sell $2m you're probably starving too). If there is a neighborhood you like that's the neighborhood to go to broker opens. If you're working during the week, then go to the open houses... just let the agent know you're an agent and don't bug them when they have real business there (even if you’re in the middle of a deep conversation). Some opens are so dead agents will eat up your time because they're bored to death. This is business... not social hour so check out the place ask about whatever it is you want to know about and then move on. Many open houses are only 2 hours... but run anywhere between 11am and 4 or 5pm on Sundays. When you go to open houses it's so you will get familiar with the current market and activity. How long have the homes been on the market, are they getting good or bad feedback, what's good and what's bad about the property/neighborhood? Everyone should be able to accomplish this task.
OPEN HOUSES: Hold open houses in the neighborhood you'd like to work in (or property types you'd like to work with). It does not need to be your listing for you to hold an open house. It is better if the property is listed with the company you work for, but that's also not a requirement so long as you have the listing agent and owner's permission. Make sure all of your marketing has who actually has the listing (or what ever other requirements there may be). You'll find buyers and sellers that like the neighborhood or property type you like. Now, to make open houses work for you, you can NOT just stick a sign in the yard and hope a bunch of buyers/sellers will show up. The more you work this, the better the results. For more about holding open houses read the blog about open houses.
WEBSITE: If you don't have a website, you need one. Even if you have no money, you need a website. If you go to Godaddy.com you can buy your domain name for $10. If you go to promotionalcodes.com or promotioncodes.com you can find $3 off most days. If you set up a free wordpress.com blog you can then direct your domain to wordpress or other blog account (like blogger that is also free). While this may not be the perfect solution, you can at least have a website, let people know you exist and that you're a pro. While most profession canned websites run about $50-80 a month (depending if you have IDX or not), you can have a presence without the $600-1,000 annual expense. If you already have a website, you should also have a blog. If you're not busy doing sales then you should be figuring out ways to make money and having people discover you. There are forums you can join and answer people's real estate questions. Many are free and you can get your name out. Be sure you always post a link to your website so you can increase your SEO visibility.
DATABASE: If you haven't listed everyone you know in a database, this makes for a great project. You can open a free batchblue account and hold up to 200 people in it for FREE. Start putting in their name, phone number, address, email address, facebook/twitter accounts in your system (you can add more stuff to it like the birthdays, kids names, etc. but don't get overwhelmed with all the stuff!). If you're afraid of a system, then put it in an Excel or other spreadsheet (a free spreadsheet system is available at openoffice.org). Think about what you want to send them 3-6 times a year. Since you have all this time on your hands right now, go ahead and start creating the pieces - email and hardcopy. When you look at them down the road when you're ready to send them, you'll see how much you've changed, grown, learned since you put the pieces together. This database is vital to your business. Keep adding to it and keep it up to date.
RECONNECT: If you're new or have been out of touch to your sphere, it's important you let them know what you're doing these days. Let people know you are interested in being introduced to people that are interested in buying a home or selling their current home... or for any of their real estate needs. How do you let them know? Send them a letter and include your business cards (it helps to have one in the envelope that has your card attached to a magnet). Send them an e-blast (make sure you use something like mailchimp or other email system that allows you to see who's opened your email). Invite them to your blog for information about the housing market or other useful information (if you are in fact offering a useful blog). Knock on their door and say hi. Invite them to coffee or to see your new office. Post on Facebook, linked in, active rain and let people know what you're doing.
HOBBY: What do you enjoy doing? Find a club or group that you can participate in that is not real estate related. You can find groups at meetup.com (free), craigslist, and other online communities. Just type in what you like and add the city or zip code and something will pop up. Make sure it's in person. If you like poker, don't do online poker, get out and play with friends or others. If you're a mom or cyclist or hiker/biker, there are tons of activities you can get involved in and have fun with and also expand your database. If you've not read the Power of Who or the Tipping Point, these are some good books to read so you can see how important it is keep in contact with people and meet new friends. Networking is important, both on a social level and a business level.
MILLION DOLLAR PRODUCERS: Every year they post who the million dollar producers are. If you’ve not already met someone who produces more than you (or produces what your goal is) then it’s time to meet one. Talk to your principal broker or some of the agents in the office until you find one that is willing to talk to you. Take him or her out for coffee or lunch and pick their brain. Ask them for three things they think you should be doing right now… and then do them!
This is a long blog and there is more that can be done… but you’ll just have to stay tuned for the next round… for now, do at least one of the above, and then another.
Then check back to TackleRealEstate.com for more stuff as it will open more doors.
First, there are so many ways that you can decide to work your business. You need to find your own grove and do what works well for you. Some may like cold calls and knocking on expired and FSBO doors, others may prefer to write blogs and work with a small group of people. BUT, you've got to do something. As a parent you may tell your kids that after they TRY a veggie and they don’t like it they get to pick two veggies that they don't have to eat, but all the other veggies the must eat. Same thing here. If you don't do something, you'll get the results that you put into it... NOTHING. So eat your veggies.
These ideas are not in any particular order. And just because you've done some of these things, it doesn't mean you'll be selling $2m from day one. You've got to work your business for your business to work for you.
KNOW WHERE YOU’RE GOING: Before you can get to where you're going you need to know where you want to get. Do you know what you want? One of the easiest ways to track how well you're doing is to pick a dollar amount in either sales commission or sales volume. So you want to gross about $50k in commissions a year, you'll need about $2m in sales ($2m times average commission less your split). That would be about 6 sales per year (depending on the average sales price of the properties you want to work with). What's important in figuring out what you want, you need to know what can get in your way of getting it and then figuring out how you're going to overcome these obstacles. Some obstacles you can prepare for, others jump at you when you least expect it. But as you get started, you know what's in your way. If you're experienced, you can look back and see some of what got in your way.
There are people thriving in this economic environment, so you don't get to use this economy as your excuse, but it is something to be aware of and figure out how you will be a value to others.
OK... Here we go
LEARN MORE: If you're new or not making $2m a year, you need to learn a thing or two. Attending classes at your office, with RMLS, PMAR, title companies, etc. are IMPORTANT. Just being around other agents that are doing things will help you as you are trying to find business or deal with the business you get. You can never know too much.
BROKER OPENS/TOURS: If you're new or haven't been out in a while, it's time to got to some broker opens. These generally happen on Tuesdays from about 10am until 2pm. Some have food :o) something good for new agents that are starving (or if you didn't sell $2m you're probably starving too). If there is a neighborhood you like that's the neighborhood to go to broker opens. If you're working during the week, then go to the open houses... just let the agent know you're an agent and don't bug them when they have real business there (even if you’re in the middle of a deep conversation). Some opens are so dead agents will eat up your time because they're bored to death. This is business... not social hour so check out the place ask about whatever it is you want to know about and then move on. Many open houses are only 2 hours... but run anywhere between 11am and 4 or 5pm on Sundays. When you go to open houses it's so you will get familiar with the current market and activity. How long have the homes been on the market, are they getting good or bad feedback, what's good and what's bad about the property/neighborhood? Everyone should be able to accomplish this task.
OPEN HOUSES: Hold open houses in the neighborhood you'd like to work in (or property types you'd like to work with). It does not need to be your listing for you to hold an open house. It is better if the property is listed with the company you work for, but that's also not a requirement so long as you have the listing agent and owner's permission. Make sure all of your marketing has who actually has the listing (or what ever other requirements there may be). You'll find buyers and sellers that like the neighborhood or property type you like. Now, to make open houses work for you, you can NOT just stick a sign in the yard and hope a bunch of buyers/sellers will show up. The more you work this, the better the results. For more about holding open houses read the blog about open houses.
WEBSITE: If you don't have a website, you need one. Even if you have no money, you need a website. If you go to Godaddy.com you can buy your domain name for $10. If you go to promotionalcodes.com or promotioncodes.com you can find $3 off most days. If you set up a free wordpress.com blog you can then direct your domain to wordpress or other blog account (like blogger that is also free). While this may not be the perfect solution, you can at least have a website, let people know you exist and that you're a pro. While most profession canned websites run about $50-80 a month (depending if you have IDX or not), you can have a presence without the $600-1,000 annual expense. If you already have a website, you should also have a blog. If you're not busy doing sales then you should be figuring out ways to make money and having people discover you. There are forums you can join and answer people's real estate questions. Many are free and you can get your name out. Be sure you always post a link to your website so you can increase your SEO visibility.
DATABASE: If you haven't listed everyone you know in a database, this makes for a great project. You can open a free batchblue account and hold up to 200 people in it for FREE. Start putting in their name, phone number, address, email address, facebook/twitter accounts in your system (you can add more stuff to it like the birthdays, kids names, etc. but don't get overwhelmed with all the stuff!). If you're afraid of a system, then put it in an Excel or other spreadsheet (a free spreadsheet system is available at openoffice.org). Think about what you want to send them 3-6 times a year. Since you have all this time on your hands right now, go ahead and start creating the pieces - email and hardcopy. When you look at them down the road when you're ready to send them, you'll see how much you've changed, grown, learned since you put the pieces together. This database is vital to your business. Keep adding to it and keep it up to date.
RECONNECT: If you're new or have been out of touch to your sphere, it's important you let them know what you're doing these days. Let people know you are interested in being introduced to people that are interested in buying a home or selling their current home... or for any of their real estate needs. How do you let them know? Send them a letter and include your business cards (it helps to have one in the envelope that has your card attached to a magnet). Send them an e-blast (make sure you use something like mailchimp or other email system that allows you to see who's opened your email). Invite them to your blog for information about the housing market or other useful information (if you are in fact offering a useful blog). Knock on their door and say hi. Invite them to coffee or to see your new office. Post on Facebook, linked in, active rain and let people know what you're doing.
HOBBY: What do you enjoy doing? Find a club or group that you can participate in that is not real estate related. You can find groups at meetup.com (free), craigslist, and other online communities. Just type in what you like and add the city or zip code and something will pop up. Make sure it's in person. If you like poker, don't do online poker, get out and play with friends or others. If you're a mom or cyclist or hiker/biker, there are tons of activities you can get involved in and have fun with and also expand your database. If you've not read the Power of Who or the Tipping Point, these are some good books to read so you can see how important it is keep in contact with people and meet new friends. Networking is important, both on a social level and a business level.
MILLION DOLLAR PRODUCERS: Every year they post who the million dollar producers are. If you’ve not already met someone who produces more than you (or produces what your goal is) then it’s time to meet one. Talk to your principal broker or some of the agents in the office until you find one that is willing to talk to you. Take him or her out for coffee or lunch and pick their brain. Ask them for three things they think you should be doing right now… and then do them!
This is a long blog and there is more that can be done… but you’ll just have to stay tuned for the next round… for now, do at least one of the above, and then another.
Then check back to TackleRealEstate.com for more stuff as it will open more doors.
Saturday, February 20, 2010
Short Sale Listings - How are they different?
This is a question that comes up often. There is really not much different than taking a regular listing except that it takes longer (and more of your time and energy), you've got an extra party to deal with (that isn't really helpful), and you've got to get personal about your client's financial situation that you cannot pass on to a lender. You do NOT need a short sale "expert" (or specialty short sale company) to handle your short sale. Really. You can do this on your own. If it's your first, just be honest with your client.
What to do first? Find out if you're clients want to stay in the house or if they're wanting to let the home go. This is important. There are lots of options for people that want to stay in their homes and you wan to make sure they've exausted all of them before you take the listing. If they're ready to move, are they really ready? Will they do the work it's going to take to get the place sold (fill out and obtain the lender required documents, show the property as needed, sign offers, etc.).
Short sale commissions are all over the place. I personally believe I give great service and especially with the time and energy involved with a short sale I charge 7% in most cases. The lenders will typically draw a line in the sand at 6% (it used to be lower). Few agents want to deal with the headache of a short sale (on either the buying or selling side) so if you're offering a low commission to the buyers agent are you really creating a draw to your short sale listing? Not so much. No reason to add to the market time by having a low commission.
If you're client is ready to let it go be sure they are aware this process will take some time (hopefully less time after 4/5/2010). Give them the additional disclosures offered by OREF (Short Sale Summary and a blank copy of the Short Sale Addendum) in addition to the traditional listing documents. Obtain a copy of the loan document - at least the current mortgage statement with the account number(s) and contact numbers. They are likely already delinquent so get copies of any letters they've received (it will have helpful contact information and maybe even information about how to do a short sale with this particular lender). Have the client(s) sign a third party authorization form (just a letter from the borrower/client stating that you've been given the authority to talk to the lender about their account). If it has not already been done request the "short sale packet" from the lender. Some lenders don't have a packet, just a laundry list of things they want (bank statements, pay stubs, tax returns, a budget, a hardship letter, etc).
So the fun part. You will need to dig into this packet of financial stuff with your client to be sure you have a completed packet to submit to the lender. You will need to know what a budget looks like if the lender didn't provide a form. You may need to explain to them what a hardship letter is and ensure it has all of the components that a lender will want to know (they lost their job, reduction in pay, medical issues, divorce, whatever and how it makes it that they cannot now or into the future pay their mortgage). Depending on the number of loans being affected and the lenders being affected you will need to figure out who to send a completed packet to. Some companies make it really easy, others not so much. We're hoping that after 4/5/10 that it will be more clear and the process more streamlined, but for now you might need to become an investigator. Get the 3rd party authorization form off right away so you can being figuring this out.
Once you send off the 3rd party authorization (at least 3-4 business days later) call the lender and be sure they got it. Then start asking questions. Ask them what their particular process is from start to finish. Get any contact numbers you can and record EVERY contact you make with the lender - date/time, the phone number, their name/id, fax number, email and what they've told you. The stories will change as you go along so you want to be sure your file is well documented with who said what when.
Often lenders want the home listed for 90 days before they will consider a short sale. If the borrower/seller has been making payments all along it's going to be hard for the lender to agree to a short sale - why would they as they're making the payments. It is not your place to consult them on that topic, but it's a reality you should be aware of when taking the listing. Don't start the listing low as the lenders will want to see that an effort was made to get market value, then show the progression to the price that brought in the offer. You may need to provide the documentation to show how you came up with the listing price (copy of the CMA).
Some lenders will not allow you to submit the packet before having an offer. Others encourage you to submit the packet before an offer comes in. Some lenders want all offers, others only want the "best" offer (which isn't always possible because you can have in the only offer and then you get a new offer that is $5k-$10k more in two weeks... after you've already submitted the initial offer that took months to get). Again, with the new processes going into affect 4/5/10 it will hopefully be easier for 85% of the short sales.
Some lenders are moving their processes for the short sales to the same systems they use for REO's. With Bank of America for example, you can use Equator.com and start the short sale process right on line. You claim the listing (report yourself as the listing agent), submit the 3rd party authorization, they contact the borrower/seller and things move forward from there. You can then upload all of your documents online instead of trying to figure out what fax number it needs to go to. We hope to see more of this kind of system with other lenders... especially after 4/5/10.
If you've not already started, you need to take on short sale listings. Do not run. Do not hide. Learn and make money. If you've done listings, you can do a short sale. It will take some extra time and patience, but just do it. If you do half a dozen of them and you still hate them, continue doing them anyway. It's about 1/3 the business that's out there and the process is getting easier.
Take as many classes as you can about short sales, read what you can, and ask lots of questions from people that know what their doing. Once you get going you'll see it's not this big ugly beast - it's just one more thing that you as an agent do for your clients.
You can do this.
What to do first? Find out if you're clients want to stay in the house or if they're wanting to let the home go. This is important. There are lots of options for people that want to stay in their homes and you wan to make sure they've exausted all of them before you take the listing. If they're ready to move, are they really ready? Will they do the work it's going to take to get the place sold (fill out and obtain the lender required documents, show the property as needed, sign offers, etc.).
Short sale commissions are all over the place. I personally believe I give great service and especially with the time and energy involved with a short sale I charge 7% in most cases. The lenders will typically draw a line in the sand at 6% (it used to be lower). Few agents want to deal with the headache of a short sale (on either the buying or selling side) so if you're offering a low commission to the buyers agent are you really creating a draw to your short sale listing? Not so much. No reason to add to the market time by having a low commission.
If you're client is ready to let it go be sure they are aware this process will take some time (hopefully less time after 4/5/2010). Give them the additional disclosures offered by OREF (Short Sale Summary and a blank copy of the Short Sale Addendum) in addition to the traditional listing documents. Obtain a copy of the loan document - at least the current mortgage statement with the account number(s) and contact numbers. They are likely already delinquent so get copies of any letters they've received (it will have helpful contact information and maybe even information about how to do a short sale with this particular lender). Have the client(s) sign a third party authorization form (just a letter from the borrower/client stating that you've been given the authority to talk to the lender about their account). If it has not already been done request the "short sale packet" from the lender. Some lenders don't have a packet, just a laundry list of things they want (bank statements, pay stubs, tax returns, a budget, a hardship letter, etc).
So the fun part. You will need to dig into this packet of financial stuff with your client to be sure you have a completed packet to submit to the lender. You will need to know what a budget looks like if the lender didn't provide a form. You may need to explain to them what a hardship letter is and ensure it has all of the components that a lender will want to know (they lost their job, reduction in pay, medical issues, divorce, whatever and how it makes it that they cannot now or into the future pay their mortgage). Depending on the number of loans being affected and the lenders being affected you will need to figure out who to send a completed packet to. Some companies make it really easy, others not so much. We're hoping that after 4/5/10 that it will be more clear and the process more streamlined, but for now you might need to become an investigator. Get the 3rd party authorization form off right away so you can being figuring this out.
Once you send off the 3rd party authorization (at least 3-4 business days later) call the lender and be sure they got it. Then start asking questions. Ask them what their particular process is from start to finish. Get any contact numbers you can and record EVERY contact you make with the lender - date/time, the phone number, their name/id, fax number, email and what they've told you. The stories will change as you go along so you want to be sure your file is well documented with who said what when.
Often lenders want the home listed for 90 days before they will consider a short sale. If the borrower/seller has been making payments all along it's going to be hard for the lender to agree to a short sale - why would they as they're making the payments. It is not your place to consult them on that topic, but it's a reality you should be aware of when taking the listing. Don't start the listing low as the lenders will want to see that an effort was made to get market value, then show the progression to the price that brought in the offer. You may need to provide the documentation to show how you came up with the listing price (copy of the CMA).
Some lenders will not allow you to submit the packet before having an offer. Others encourage you to submit the packet before an offer comes in. Some lenders want all offers, others only want the "best" offer (which isn't always possible because you can have in the only offer and then you get a new offer that is $5k-$10k more in two weeks... after you've already submitted the initial offer that took months to get). Again, with the new processes going into affect 4/5/10 it will hopefully be easier for 85% of the short sales.
Some lenders are moving their processes for the short sales to the same systems they use for REO's. With Bank of America for example, you can use Equator.com and start the short sale process right on line. You claim the listing (report yourself as the listing agent), submit the 3rd party authorization, they contact the borrower/seller and things move forward from there. You can then upload all of your documents online instead of trying to figure out what fax number it needs to go to. We hope to see more of this kind of system with other lenders... especially after 4/5/10.
If you've not already started, you need to take on short sale listings. Do not run. Do not hide. Learn and make money. If you've done listings, you can do a short sale. It will take some extra time and patience, but just do it. If you do half a dozen of them and you still hate them, continue doing them anyway. It's about 1/3 the business that's out there and the process is getting easier.
Take as many classes as you can about short sales, read what you can, and ask lots of questions from people that know what their doing. Once you get going you'll see it's not this big ugly beast - it's just one more thing that you as an agent do for your clients.
You can do this.
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