Home > Uncategorized > How to Shorten the Time to Get Your Short Sale Approved

How to Shorten the Time to Get Your Short Sale Approved

There is a direct correlation between the time it takes a lender to approve a Short Sale and the likelihood that the deal will eventually close.  The slower the approval process, the more time the buyer has to become discouraged, change his mind or find another property.  Let’s also remember that the longer it takes to approve a short sale, the more the property is decreasing in value. 

Because of the increased number of Short Sale applications, lenders have been unable to keep up with the demand.  The average time it takes for a bank to approve a Short Sale has almost doubled over the past 12 months.  It’s estimated that each negotiator may be responsible for 300+ files at any given time!  That said, it is crucial that applicants do everything possible to get the attention their deal deserves. 

Having facilitated hundreds of Short Sales, here are some “tricks of the trade” that we have successfully employed to get deals approved quicker: 

  1. Review the documents submitted by the seller to assure that they are fully executed and contain the material(s) the lender has requested.
  2. Prepare the package in an orderly and easy to follow sequence to make it simple for the lender to review. 
  3. Call the lender before sending it to alert them of the pending short sale request.  Also, confirm which fax number to send it to as these numbers are updated regularly.
  4. Be sure you have a complete package before submitting to a lender (normally 70 to 120 pages).  We normally don’t send a partial file as it will only give the negotiator an excuse to put it aside until a complete “package” is received.
  5. Call the lender  to confirm receipt of the package.  It may take several calls and several submissions before acknowledgement that the file was received.  NOTE:  Some lenders take up to 10 business days to confirm receipt.
  6. Begin a program of continuous telephone follow-ups to assure that the negotiator has actually been assigned and has not been changed.  Also , put pressure on the bank to order a Broker Price Opinion (BPO) immediatley.  If you are not satisfied with the progress, ask to speak with a supervisor.
  7. Once the BPO has been ordered, coordinate access to the property and if possible, provide the evaluator with comparable sales data.
  8. After the BPO, continue to follow up with lender in an effort to expidite a favorable decision.
  9. Once approval is received, try to get the deal closed ASAP before people change their minds.

As a way to expedite their transaction, many people choose to use an experienced Short Sale facilitator who knows the shortcuts and has processed hundreds of deals.  This person understands the process, has previously dealt with the lender and can often cut through the red tape to get the deal approved quicker. 

If you’d like a Short Sale expert to package and handle all the paperwork and communications with the lender at no charge whatsoever, contact Rick Schuster at   561-893-0077   or rick@homeguardiantitle.com

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