10 Tips for Success in a Short Sale

Short sales are coming back and here is some helpful information:

• Include wording in the NWMLS listing that indicates this is a short sale
• Include the above wording in the purchase and sale agreement
• Don't discount the commission at the time of listing
• Obtain paperwork from the seller's last loan (is there a prepayment penalty)
• Be attuned to the seller's financial and emotional conditions
• Obtain the preliminary title commitment as soon as possible (is there more than one lienholder)
• Advise the seller to consult with an accountant to determine if any forgiveness of debt is a taxable event
• Verify with the underlying lender that the debt is being forgiven or if this is just a release of their lien
• Advise the seller to request a workout package from the Loss Mitigation Department of the lender
• Ensure regular communications are maintained between the buyer, seller, selling agent, escrow and lender