Good news in the world of short sales this week! An 11 day short sale approval! I have a home for sale in Walnut Creek that is a short sale with Chase Bank as the lender. I submitted a contract to Chase
bank on January 13th, and we received Chase short sale approval on Tuesday, January 24th! 11 day short sale approval may be a record for me! How did it happen? Preparation here is crucial.
- We listed the property and immediately submitted the seller financial package to Chase.
- Chase performed a BPO early in the process (probably more of a result of missed payments than our short sale submission)
- Chase assigned us a processor very quickly.
- The processor followed up with me about once a week to check on our progress.
- We kept the processor informed of the market and adjusted price as necessary.
- We dropped the price as warranted for our market and the key here is that the processor told us we should not drop our price, but we felt comfortable at a new price based on comps and knew we could support the value in any BPO challenge we would have to overcome.
- Submitted complete purchase contract, estimated HUD and updated seller financials.
- Approval 11 days later.
There is still a myth out there that most short sales are failures and a disaster, and it really isn’t true in most cases. Of course, some cases go sideways. Some have issues we have no control of (for instance I have a short sale in Pleasant Hill now with a VERY uncooperative mortgage insurance company). But most short sales, with the right agent – do succeed. The best short sale agents do NOT take every short sale, but instead they assess each short sale on its own merits and don’t take the ones doomed to fail from the beginning. Selecting the right short sale agent is CRITICAL. BE PREPARED! Know what to expect! Be proactive!
If you are a buyer of a short sale, it is equally critical to have your agent ask key questions of that listing agent. More on that in an upcoming short sale blog post!
Stay tuned. Check out the Contra Costa, Walnut Creek short sale resource center here on www.DiabloValley.net
Walnut Creek short sales
Windermere Bay Area Properties