Instructions for Submitting a Short Sale Offer to Susan Kliesen
Office: 678-804-2527 Cell : 404-510-1988 Fax: 770-217-3114
Thank You for your interest in one of our properties. We look forward to working with you and assure you we will work diligently for you and your buyers. We want to do everything in our power to make this transaction as smooth as possible for all parties.
You will need to present the following documents
1. Purchase and Sale Agreement (F-20) (instructions below) and all addendums
2. Copy of earnest money check
3. Letter of Approval for a loan or proof of funds for cash buyer
4. Instructions to the Closing Attorney (F-32) (instructions below)
5. Short Sale Contingency Exhibit (F-94)
1. The earnest money needs to be a least $1,000 for all properties. Earnest money needs to be payable to RE/MAX Center.
2. You must use the seller’s closing attorney: O'Kelley & Sorohan, Attorney's at Law, LLC
2170 Satellite Blvd, Ste 375, Duluth, GA 30097 Phone: 678-942-1566 Fax: 678-287-79453.
3. Please know the seller is experiencing a financial hardship. If utilities are not on and the buyer is doing an inspection and or appraisal, your buyer will need to turn them on in their name.
4. Property is being Sold “As Is”. The seller has no funds to make repairs. Your client may select the option for “Due Diligence” (with 10 days as the Due Diligence) instead of “As Is” option but understand that there are no funds for repairs. If there is a condition that prohibits you getting your loan you should consider the FHA 203B or 203K loan. John Anderson with Fairway Mortgage can also offer a small escrow for repairs to be completed immediately after closing in some cases without the expense of 203B or 203K loans. You may want to contact him for options 770-972-5768.
5. Short Sales are time sensitive and different lenders have different requirements outside the seller and broker’s control. Please use the GAR Short Sale Contingency form F-94 and put 10 days prior to closing in the blank provided.
6. Please add the special stipulation: “All parties agree buyer shall deliver earnest money to listing broker within 48 hours of binding agreement.”
7. The seller will not agree to have the Due Diligence period begin after the bank has approved the short sale. If you want to do an inspection it needs to be done right away. We would not want to put all the effort and time into an approval on a house that your buyer wouldn’t want to buy because of the inspection. The seller will agree to a 17 day appraisal contingency that begins from the date the bank’s short sale approval is delivered to the buyer’s agent.
8. Closing Date: Please put a closing date of at least 60 days from the date of the offer. Most short sales take 4-6 weeks to get approved. Your buyer needs to begin working on their loan immediately and as soon as we get the approval from the bank they can order the appraisal and get their loan underwritten.
9. Instructions to Closing Attorney must include in Special Stipulations the following:
“Listing Broker is asking Sellers bank to pay a broker commission of 6% (3% to each broker), however, commission paid to brokers is contingent upon the gross loss the seller’s bank is incurring by accepting the short sale. Since both brokers are diligently working on procuring a smooth closing, both listing and selling broker agree to split equally the gross commission paid by seller’s bank.”
How Much Should You Offer??
Buyers Agents please keep this in mind when placing your offer. The seller’s bank will either order an appraisal or a BPO (broker price opinion) on the property as soon as they open our file. If the seller is in a true hardship and is in danger of foreclosure all banks are willing to consider a short sale at today’s fair market value. When presenting your offer if you are going to make an offer for less than the listed price please provide at least 3 closed comparables within the last 3 months that justifies your price. If your buyer has a hard time rationalizing this concept explain it to them this way.
Example Scenario: The seller paid $350,000 for their house. Because of all the foreclosures and short sales in their neighborhood it would only appraise at a price of $269,000 today but they still owe $325,000. The sellers don’t have the money to bring the amount they are upside down to closing. We have the short sale listed at $269,000. If a buyer makes us an offer of $190,000 the bank will likely reject the offer and foreclose on the house. The reason they would foreclose is because they would rather pay a few thousand in legal fees to foreclose than to take $79,000 less than the house would sell for if it was a foreclosure. Now if your buyer makes an offer of $260,000 there is a good chance the bank would still approve it. The sellers in this transaction have one intention only, to not have their home foreclosed. They will not get any money from the sale because they are upside down, they just want an offer that can be approved.
Short Sales Really Do Close
My success rate for getting short sales approved is 95% and the average sale takes 3-6 weeks to be approved. I am a Certified Distress Property Expert and have developed a very systemized approach to short sales. I look forward to doing business with you.
I have successfully closed short sales with these 36 different banks:
American Home Mortgage Servicing (AHMSI) – American Servicing Company (ASC) – Bank of America – BB&T – Beneficial – BB&T – Beneficial – Cenlar – Charter One/CCO Financial – Chase – Citimortgage – Countrywide – e-bank – EMC – First Franklin – First Horizon Home Loans – First Tennessee – GMAC – Household Financial (HFC) – Indymac – IRS – JP Morgan – Litton Loans – Midland Mortgage – Monterra Capital Corporation – Ocwen – Pencrow – PNC Bank – Radiant Guarantee – RBS Citizens – Regions – Royal Bank of Canada (RBC) – Select Portfolio Servicing – Specialized Loan Servicing – Stearns Bank – Suntrust – Wachovia – Wells Fargo
This Document is the property of Susan Kliesen. You do not have permission to copy or duplicate this material for your own use.