This is a document that I give to buyer's agent prior to the buyer writing an offer.  I find that it helps set a positive tone to the Short Sale Process.  Many times a Short Sale deal falls apart because the buyer's agent and/or buyer becomes frustrated and quits before we get the approval.  I find that this letter helps avoid that problem. 

Mike Sher

When Working with Short Sales

Dear Agent,

            A quick note to accompany the Short Sale Addendum to Purchase Agreement:

** Write the following in the Purchase Agreement: "This offer to purchase is contingent on lender's short sale approval" **

 This is a Pre-Foreclosure sale.  Which means this is a win/win for everyone:

The Buyer: gets a great home at Foreclosure pricing without the hassle of de-winterizing, and turning on the utilities.  The buyer gets seller disclosures and a warranty deed at closing.

The Bank: avoids the cost, liabilities of foreclosing on a house; and, though they sell it for less than the debt, they avoid additional expenses and they receive their funds within 24 hours after closing.

The Seller:  avoids a foreclosure on his record and is able to offer a great home below the market value price.

Michigan:  The economy gets to avoid another foreclosure which has plagued our local economy for so long.

The real cost for all parties is patience.   Please understand that it may take up to 45 days or more for the offer to be accepted by the lender.  It can be a lengthy process, navigating through the necessary departments.  Please keep this in mind, be patient, and ask your buyers to be patient.  Set your Purchase Agreement dates accordingly. Timeline as follows:

1. Buyer signs the Short Sale Addendum that was included with the Seller Disclosures faxed to you from my office.  Offer MUST have a mortgage pre-approval, or verification of funds for a cash sale, for offer to be considered.
2. Seller signs offer, assuming the offer is reasonable for lender to consider.
3. The property is considered "Pending", contingent on lender approval. We will continue to market the property for back-up offers only.
4. Listing Agent submits offer with preliminary HUD, pre-approval (or fund verification), along with all required seller documents to the appropriate department(s).
5. Listing agent will keep in contact with Department and will report to buyer's agent if bank counters, declines or accepts offer (remember: this process may be lengthy).
6. Once Lender(s) and Buyer agree with terms, a Short Sale Acceptance Letter will be sent (faxed) from the lender to the listing agent affirming and spelling out the terms and conditions of the short sale. All parties (Buyer, Buyer's Broker, Listing Broker and Seller) must agree to the terms of the short sale.
7. If Buyer conducts a private property inspection, it is strongly suggested that they do so with in 7 days of seller acceptance.  It is understood that the sale is "AS IS", with no repairs or price changes agreed to by seller or lender.  Buyer's sole recourse is to call the sale null and void if there is dissatisfaction with the property inspection. 

      Thank you in advance for your patience and cooperation, I'm looking forward to working with you and putting this sale together!

___________________________

                        Listing Agent