OK so Wendy and I completed session 2 of Short Sale Basics today. It was awesome!!!! If you want to get in on Short Sale Basics it’s not too late. All classes are being recorded and are available on MP3.
So if you have the desire to learn how to handle Short Sales come join us!! It’s only $97 for the entire 5 part Webinar IF…you get in now. Once the sessions are completed….the cost WILL be going up.
Wendy and I are spending many hours putting these together and can guarantee you that at $97 we are practically giving them away.
Anyway….check out Wendy’s recap of today’s class. You just wouldn’t figure that a financial work sheet could be so important.
Broker Bryant and I just finished teaching Short Sale Basics: Session 2, part of our 5-session webinar series about short sales. Today we covered qualifying the seller and short sale documents. There was a lot of material, in fact we went over time! Part of our in-depth analysis included dissecting the financial worksheet (one of my favorite things to do). We provided a made-up example and found “errors” for discussion.
Here are a few of the possible mistakes you might find in the financial worksheet:
- Numbers don’t add up – that’s right, simple math mistakes adding up income and expenses.
- Monthly gross income used, not net income
- Annual gross income used, not monthly
- Bonuses from last year are included in current year
- Current year commission or P&L is based on last tax year, not recent income
- Rental income listed when tenant is moving out
- Gross rental income is not adjusted for expenses
- Listing the same military base housing allowance when it is changing upon relocation
- Incorrectly assuming property value when listing assets
- Not including current mortgage and associated expenses for short sale property
- Not including anticipated rent and expenses upon relocation
- Spending money on frivolous items, like tennis lessons, skydiving, vacations, etc.
- Not itemizing “miscellaneous” expenses
Finally, when monthly net income is more than monthly expenses– there may not be a hardship at all!
The financial worksheet is one of the most problem-ridden parts of a short sale package. In a questionable hardship case, you can use the financial worksheet as part of your seller pre-qualification.
Want to learn more? Our next Short Sale Basics webinar is Saturday, July 18, at 11:00 Eastern. All five sessions will be available on MP3 if you cannot attend live or miss any. Session 3 we will be covering the short sale listing, price reductions (one of Bryant’s favorite subjects) and more. See you then!