Short Sale Guidelines: 3 Reasons To Stay Current With Them

Short sale as a real estate investing strategy is the easiest way for new investors to get started in real estate. It takes an avearge of 2-4 months to get a short sale process completed under normal circumstances. However, it takes the average realtor or investor about 6 months or never to complete one file.

Have you wondered why many short sale experts take so long to close a deal? Have you ever wondered if it's the bank or the expert that's sleeping on the deal? Here is the truth of the matter.

To be successful short sale expert, one has to be current with updates and changes from time to time. Often, people get this illusion from gurus that your hands can be folded behind your back and be making a killer profit on short sales. I could not disagree more.

The same rules that govern every profession in life apply to a short sale expert. Hard working is still the key especially for newbies. One would need to work hard at streamlining a lot of redundancies that comes with starting a new profession afresh. The following are the reasons why you need keep up.

1. New Short Sale Guidelines Can Put Your Business at Risk

If you are a savvy investor or realtor, all you would need to do is to stay current with the changes to guidelines. There are changes in the guidelines that may jeopardize your business. Certain rules may be tightened and you may find yourself on the other side of the law if care is not taken.

2. New Short Sale Guidelines Can Provide More Benefits for Your Clients

Sometimes a bank may loosen up certain short sale requirements especially during time of economy crisis. Unfortunately, the banks will not broadcast this very important information out to you and other short sale negotiators all over the nation.

Sometimes a bank will increase allowable agent commission from 3% to 5%. If you are an agent, apparently you would like to find out about this update. Generally, mortgage servicers change guideline quite very often.

3. Staying Up to Date Increases Your Knowledge and Expertise

Often, short sale experts act like a Mr. Too Know by not calling a bank first before sending in a new proposal without checking for updates at the bank. They have the usual fax number to fax the short sale package to because they have dealt with the bank before; therefore they just send the package in.

You should be the first to know about changes in any guidelines. It does not speak well if your client find out before you. I am not advising that you should call the existing mortgage servicers once every week. Just once before you send in a short sale package is very important.

In conclusion, there are two ways to check for updates and they both cost you a few minutes. It is worth while. The mortgage bank websites is the fastest way to see new updates, additions and subtractions from short sale or work out guidelines. If you do not know the site address, search for the bank website on Google. The second way to check is to simply spend 5 minutes calling the bank on the phone.

I have wasted weeks in the past by just sending packages in and finding out weeks later that the bank do not pay for certain closing cost anymore or otherwise. Some mortgage servicers will simply close your short sale file without notice if your package does not comply with the guideline. Save your self time and such head aches.

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