Short Sales - General How to Guide for Realtors and Consumers

Short Sale How To Phone Call Rules:
1) Listen to the Homeowner: Some Realtors/Investors are so excited to offer services that they just talk and talk. Make the homeowner feel that they're understood by you before you start talking. However, don't let this progress too far because some people start crying. When they expose themselves, it hurts your ability to deal with the homeowner's situation. On the phone; listen 70% and speak 30% of the time.
2) Project Confidence: Homeowners will want to deal with professionals who know what they're doing. Project confidence on the phone when discussing preforeclosure marketing and short sales.
3) Be honest: Don't make unrealistic promises. Ask the homeowner to take a look at their other options before signing on with you. If the person wants to keep their house, look at the avenues through which that might be possible, either in renting or leasing to own with you.
Always use a "two-call approach." Never solidify an entire preforeclosure deal on the first call. It shows the customer that you need to check to see if this will be a fit and gives you control over the situation. They immediately know that you are a business and that they may not qualify for your services, when you say that you'll look at the deal and call them back.

8 Short Sale How To Steps:
You'll have to work to keep the homeowner's interest in a preforeclosure deal. There are eight short sale how to steps to make the first phone call work for you:
1) Make Introductions: Often on the phone Realtors and Investors are so anxious to offer their services that they don't take the time to introduce themselves. Tell the homeowner that you are a preforeclosure specialist giving people help in tough situations.
2) Ask for More: Ask the customer to tell you more about their story. Don't ask direct questions. Also, take the responsibility off of them and put it onto the house. Tell the homeowner you may not be able to help them out, but you will give them their best option.
3) Qualify the deal: You can't accept every deal and neither should you. It's best that you don't take any deals less than $100,000 or from people with bad attitudes. Avoid people who are angry, upset, have a "poor me" mentality. Also look at the amount owed on the mortgage. Banks work on percentages, so take this into account.
4) Asking for More Short Sale How To Information: There's more to the preforeclosure marketing deal than equity and location. Ask the homeowner if they have FHA loans or VA loans. You can get huge discounts on FHA loans and have more time to close, sometimes up to 90 days to close rather than 30 days. Make sure there are enough repairs to get a great discount but not so many that no one will look at the property. Ask about their mortgage holders. Different banks have special docs that are often required. Divorce often comes up in these foreclosure situations so ask about their family situation. Ask when they are moving? The system is becoming so fast that you can often have short sale negotiations completed in 30-60 days.
5) Explain Yourself: Use the previous step to move into talking about your preforeclosure services. You specialize in working with folks who are behind in payments. You don't charge anything for your services no matter the cost of the house or the preforeclosure deal. On the downside there are a lot of people who need your services, so you can't accept everyone.
6) Let's pretend: This is a very powerful system because it doesn't hold you accountable for everything. Say, "Let's pretend we're able to help you out. Does this sound like it would be a fit for you?" This is a very loose question that doesn't put them on the spot or make you sound like a shyster. If they say yes, go over all the documents.
7) Explain the Documentation: Go over exactly what the homeowner will need for your first meeting and later for the short sale package. Let the homeowner know that the bank needs copies of these too. There are six documents:
• 2 months of bank statements • 2 recent pay stubs • 2 years of tax returns
• Financial hardship letter describing what's going on with their house and why they are unable to pay, such as bankruptcy.
• Mortgage statements from the lender of the past due loan. You'll need copies of these to know where to start the short sale.
• Financial statement listing the homeowner's income at its lowest and all monthly expenses at their highest. Show the bank that the homeowner's expenses are higher than their income.
8) A Second Call: You can have a second person follow up with the homeowner. Make sure you edify this second person by raising the influence of something or someone. The homeowner will have a respect for him or her when they call. If it's just you, get another person who can call back the homeowners ASAP. For now, set yourself up and say you have other folks you need to check with to make sure this is a deal you can do.

Short Sale How To: The Second Phone Call
The first call is very important to a preforeclosure marketing deal. Your second call will be a breeze if you handle the first call well. There are four steps in the second call:
1) Offer Congratulations: Tell the homeowner that you'll be able to take the deal and congratulate them. Your services are much better than the others out there. The homeowners should feel good that they have chosen you rather than bad competition.
2) Go Over Documents: Go through all the documents that you will need again. Make sure the clients understand it and everything is clear.
3) Set up a Meeting: Pick a time to meet with the homeowners either at their house or at your office. Ask them if they have a pen to write it down when you state the time and place of the meeting. The last thing you want is to have them forget the appointment.
4) Confirm the Meeting: Your time is valuable so emphasize that strongly to the homeowner. Many clients are in this situation because they have trouble meeting obligations. They may not have the best scheduling or organization skills.
Follow these short sale how to steps-the first call, second call, and meeting-flow as seamlessly as possible and your preforeclosure marketing plans will go smoothly. Each completed call ensuring that you have a successful short sale package and a homeowner willing to sign on with you.

Rob Alley, Realtor at Keller Williams Charlottesville
540-250-3275 (cell)
roballeyrealtor@gmail.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.charlottesvillevarealestate.blogspot.com
http://www.charlottesvilleshortsale.com
http://www.theaverygroup.com