Without any further delay here are the "Top 5 Mistakes Agents Make When Doing Short Sales."

Let's get started!**

Short Sale Mistake #1: Not Knowing The Sellers Options...
It's very common to find sellers who owe too much on their homes. It is predicted that by this time next year up to 50% of all the homes for sale will be owned by sellers who owe more on their homes that true market value. Sellers often make the mistake of thinking their only option is letting the house go into foreclosure. It's important to understand that the banks don't want to do foreclosures. Banks are in the lending business not the home owning business. It is extremely expensive for the lender to actually carry out a foreclosure.

Short sales are almost always the best option for both the lender and the seller. There are some negative effects on the sellers credit from doing a short sale. Granted a foreclosure is far worse than a short sale. However, there is a little known technique that allows the sellers and the lender to sell the home...while preventing the seller from having any negative credit history. This is called a Work Out.

Here is how it works:
The seller owes $500,000 on a first mortgage and $30,000 on a second mortgage. The market value on the home is $500,000. In order to sell the home in this market the second mortgage holder will have to agree to take a total loss and lose $30,000. When that happens there could be legal and credit related issues that the seller will be stuck with. But, if the seller would agree to pay all or part of the $30,000 back to the second mortgage lender as an unsecured line of credit. In exchange for the seller agreeing to pay all or part of the debt back—no negative credit will be reported and no legal issues will arise.

Short Sale Mistake #2: Not Understanding The Process...
Here is the bottom line. Short sales do take time. It is certainly possible to close a short sale in 30 to 60 days, however, it's not unusual for a short sale to take up to 90 days or more to close. Your agent will have to manage the seller's expectations and the other agent's, not to mention the expectations of the buyers. Lenders are not efficient at processing short sales. Each lender has slightly different ways of doing things. By learning the actual process of doing short sales you can be in the driver's seat.

Short Sale Mistake #3: Not Submitting "The Package" Correctly...
Every lender will require that there is a completed 'Package' submitted before they will even glance at a short sale offer. Don't submit anything to the lender until you have all the paperwork correctly completed. I repeat, if your agent turns in an incomplete 'Package' into the lender they won't process it. They probably won't even call you back.
A partial list of what "The Package" must contain;

1. A Listing agreement.
2. A completed "Signed" purchase contract.
3. Estimate net sheet (HUD1) showing no funds to seller.
4. Complete financial disclosures from the seller.
5. A hardship letter stating why the seller can't make their payments.

Short Sale Mistake #4: Not Understanding The BPO "Appraisel"...
The BPO or appraisel is possibly the most important part of the short sale process. The BPO is the lenders way of determining if your offer is fair for them (Similar to an appraisel). Here is the problem. Often times the BPOs come in too high. When that happens your short sale offer to the lender will be rejected. Your agent must control the BPO. Here's how your agent can handle it. Always meet the agent who is doing the BPO at the property. You need to show the BPO agent why the home is worth what your offer states it's worth. The most effective way to do this is to do an actual BPO for the agent. Another option is for your agent to give them a BPO. Assuming your BPO clearly states the case why the home is worth what you say it is, the BPO agent will use your BPO vs. doing his or her own. This means your short sale offer to the lender will flow through the acceptance process much more smoothly.

Short Sale Mistake #5: Giving Up Too Easily...
Most agents give up on short sales way too easily. Because the process is different compared to a normal transaction its common that agents will give up even trying to do short sales. That is a huge mistake. Short sales follow a process that isn't that different than a normal sale. You don't need the 'secret decoder ring' to do short sales. It's simply a process. Learning that process does take time and education. When the bank says no that's when the selling starts.

The simple fact is that you should choose an agent who has learned this process and is experienced with and closed short sales. They are going to be light years ahead of the agents who have not. In this market not every agent understands this process and it has become my understanding that most do not understand this process and make excuses why short sales are no good for home owners. I have succesfully closed many short sale transactions and have the ability to help you.

Call me today! Do not wait until it is too late. I would be glad to meet with you for a no obligation confidential review of your situation.

**Nothing is this article should be construed as legal or financial advice. For legal/financial questions, seek a the advice of a professional advisor.