The Knowles Team
Distressed Property System
Activated when homeowners feel their home may be in a ‘distressed’ situation
Tips for Success on Short Sales for Sellers |
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Pre-listing Activities
· Meet with the homeowner at their home
o Discuss the Seller Interview Questions
o Determine how much time is available by completing our Timeline Worksheet
o Determine the homeowner’s level of expectation, motivation, cooperation and willingness to communicate openly. (This is an emotional event. A solid working relationship is critical.)
o Ascertain the condition of the home
o Review Homeowner Financial Worksheet so the homeowner understands how to complete it
o Review the Homeowner Document Checklist so the homeowner understands what documentation is needed
o Prepare the Homeowner’s To-Do List
o Review a Sample Hardship Letter so the homeowner understands its importance and what to include in it. This letter must be prepared by the homeowner.
Listing Activities
· Crunch the numbers using the completed Financial Worksheet to confirm the homeowner meets the lender’s criteria as a distressed seller
· Verify the submission of the items on the Homeowner Document Checklist
· Verify the completion of the Homeowner’s To-Do List
· Execute the Listing Agreement
o Complete NWMLS Listing Agreement
o Complete the Listing Agreement Addendum
o Complete the Listing Price Worksheet
o Complete the Hold Harmless Agreement
o Complete the Acknowledgement of Possible Consquences
o Complete the Authorization to Release Information and submit it to the lender’s loss mitigation department
o Review the homeowner’s Hardship Letter for completeness and to confirm its accuracy
Upon Receipt of an Offer
· Review the offer with the seller to obtain approval to submit it to their lender
· Prepare the Cover Letter to the lender
· Compile the Short Sale Package. This package consists of approximately 100 pages of material. It documents the seller’s situation and makes the case why the lender should accept a short sale.
· Fax the Short Sale Package to the lender’s loss mitigation department
Lender’s Review of Short Sale Package
· The lender’s review can take up to 60 days.
o Make a weekly follow-up call to the loss mitigation specialist to ensure all paperwork has been received and to learn if any additional information is required
o Keep ALL parties informed
§ seller
§ buyer’s agent
Click here to return to the Property Owner's page of the Washington Short Sale Center