We are all becoming more familiar with the Distressed housing Market. Not that the homes are distressed but it can be said that the owners are. Many of the properties show beautifully and are a great bargain...So why are they still on the market?

The easiest way to answer that question is to take a look at the process of getting an approval from the bank. It appears that it would be in the best interest of the lender to accept a sale now, even if the amount is less than owed than to go through months of negotiation and the potential of loosing a buyer only to foreclose, and submit to the process starting all over again.

• List property at a price that is less the amount owed to the lender

• Get a preliminary Title

• Permission forms signed by Sellers for Agents to speak directly with the bank on their behalf.

• Have the sellers write a hardship letter ( we provide samples to follow)

• Complete the Short sale Packet and fax to the lender. Keep successful Fax confirmation. A lender may have more than one acceptable fax number...send a copy to each until successful.

• Once an offer is received make sure the other agent noted that the property is a short sale as disclosed in the MLS, and is aware of the proper forms to use for such a sale. Request a HUD statement from the title company and forward it on to the Lender.

• Fax over the offer with the loan number on the top of every page you fax.Keep in mind there may be a second loan on the property and you must follow all of the steps for each loan.

• Call the  bank for each step, and to confirm that they have the permission form. This may have to be faxed to a separate fax number than the listing paperwork or the offer. Be sure and ask which fax number is required for every step.

• Resubmit any and all material that the Lender says they do not have, even if you have a successful fax confirmation.

• Keep a detailed log containing the names of who you spoke with, and include the date and time. Keep detailed notes, and have them handy to refer back to especially when talking with the lender.

• The Lender wil be requesting a BPO (Brokers Price Opinion) to ensure that the offer is within a certain percentage of current market value before accepting it. Typically this is 10%.