How To Qualify a Customer for a Short Sale

One of the biggest hurdles you are going to have in your Short Sale transaction is Qualification. You will need to set up a phone interview. Make sure to have a prepared list of qualifying questions and a break down of how the Short Sale works. Keep these three tips in mind when you are speaking with customers to help "weed" out the strongest potential deals for your pipeline.

1.) Proof of Hardship: Before you can ask lenders to write off principle you will need to find out why your client can no longer afford their home. Job Loss, Relocation, Medical Expenses, Divorce, and even Adjustable Mortgage payments can all be contributing factors to hardship. This an important part of your interview process. Some lenders will require documentation of these events. Make sure your client begins to gather these documents so that you will be prepared to submit the package when requested.

2.) How Far Behind Are you?: You will need some time (at least a week) to initiate the transaction with the lender. RED FLAGS: A set foreclosure date OR The customer discloses that they have not made a payment in over 120 days. You still may be able to work the transaction, BUT before you launch your full attack, give a courtesy call to the lender to see if the file is already lost to the Trustee.

3.) Explain all Options: Disclosure is very important. The bottom line: Short Sales cannot be guaranteed. Your client's lender should have a website or hard copy packet explaining all of the "distress" options your client has. Make sure that they have reviewed these options BEFORE you get started.

These three tips have personally saved a great deal of time in my day, and I hope they will help you to streamline your potential customers into working clients.