5 Tips to Improve Your Chances of Getting Short Sale Approval
In yesterday's post, I detailed a few reasons why short sales are declined. Today, I will share my top 5 tips to improve the chances that your short sale will be approved.
First and foremost, hire an experienced short sale Realtor. Because you have so much at stake, it is imperative that you hire a Realtor who has a proven short sale track record. It doesn't matter how many short sales an agent has listed; what matters is how many short sales the Realtor you hire has actually closed. A Realtor who closes several short sales a year likely has the tenacity and organizational skills required to successfully manage and facilitate your short sale.
My second tip is to have a sense of urgency. Be responsive when your Realtor requests documents from you. Respond to emails and phone calls in a timely manner. As unfair as it may seem,after months of doing what often appears to be nothing, once the approval process gets rolling, the bank may request additional documentation and impose very short deadlines for receiving those documents. Time is of the essence and delays in providing required documentation can be the difference between an approval and a denial of your short sale request.
Next, be as accurate as possible when completing the financial statement. Refer to the memory jogger your real estate agent provided to you and be sure to include all of your monthly expenses on the financial statement. If you have expenses that you pay quarterly or semi-annually, break them down to a monthly amount and include them on your financial statement. If you have certain expenses that you usually pay cash for, such has trips to the salon or lunch each day, include them on your financial statement. The goal is to paint as accurate a picture as possible of your financial situation.
My next tip is to write a thoughtful hardship letter. By no means am I encouraging you to write a novel. However, you should write an honest letter that gives the bank a true picture of your financial hardship. If you are not sure what to say in your hardship letter, ask your Realtor to help you with it and be sure to attach any documentation you have that supports your hardship claim.
My fifth and final tip is to make full disclosure to your Realtor about the existence of any liens or judgments when you first list the property. If a lien is filed against you or a judgment is entered against you after you list the property, share that information with your Realtor immediately. By disclosing the existence of any liens or judgments early on in the short sale process, you allow your Realtor to take the appropriate steps to obtain approval from those lien holders.
If you would like more information about short sales or to schedule a no obligation consultation, please give me a call at 678-446-5925.
First and foremost, hire an experienced short sale Realtor. Because you have so much at stake, it is imperative that you hire a Realtor who has a proven short sale track record. It doesn't matter how many short sales an agent has listed; what matters is how many short sales the Realtor you hire has actually closed. A Realtor who closes several short sales a year likely has the tenacity and organizational skills required to successfully manage and facilitate your short sale.
My second tip is to have a sense of urgency. Be responsive when your Realtor requests documents from you. Respond to emails and phone calls in a timely manner. As unfair as it may seem,after months of doing what often appears to be nothing, once the approval process gets rolling, the bank may request additional documentation and impose very short deadlines for receiving those documents. Time is of the essence and delays in providing required documentation can be the difference between an approval and a denial of your short sale request. Next, be as accurate as possible when completing the financial statement. Refer to the memory jogger your real estate agent provided to you and be sure to include all of your monthly expenses on the financial statement. If you have expenses that you pay quarterly or semi-annually, break them down to a monthly amount and include them on your financial statement. If you have certain expenses that you usually pay cash for, such has trips to the salon or lunch each day, include them on your financial statement. The goal is to paint as accurate a picture as possible of your financial situation.
My next tip is to write a thoughtful hardship letter. By no means am I encouraging you to write a novel. However, you should write an honest letter that gives the bank a true picture of your financial hardship. If you are not sure what to say in your hardship letter, ask your Realtor to help you with it and be sure to attach any documentation you have that supports your hardship claim.
My fifth and final tip is to make full disclosure to your Realtor about the existence of any liens or judgments when you first list the property. If a lien is filed against you or a judgment is entered against you after you list the property, share that information with your Realtor immediately. By disclosing the existence of any liens or judgments early on in the short sale process, you allow your Realtor to take the appropriate steps to obtain approval from those lien holders.
If you would like more information about short sales or to schedule a no obligation consultation, please give me a call at 678-446-5925.
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