I know a lot of agents who are advising their clients not to look at “short sale” homes and I can certainly understand their reasoning. I’ve heard the horror stories of clients waiting 5 months to receive an answer from the bank or not being notified that a Notice Of Default  has been filed, however in this changing market, short sales are becoming more viable over the multiple offer foreclosure situation.  To be able to offer the highest possible level of customer service to your clients, you may want to consider navigating the process with a road map. One of the best advise tips that I’ve seen comes from Debbie Tuttle an agent with Prudential Americana Group who offers;  

                                                    “12 Questions to Ask The Short Sale Listing Agent” 

1.    Have you ever closed a short sale before?
2.    How do you handle offers?  Do you submit them all to the bank, not having your sellers sign (which, in effect, means there is no valid offer and acceptance) and let the bank figure it out?  Or do you use multiple offer protocol, notify all agents to submit their highest and best offers, review them with the seller, have the seller accept or counter the best offer and them submit to the bank(s) for acceptance?
3.    Have you requested and received the short sale package from the bank, including the hardship letter? 
4.    And more importantly, has the seller completed the hardship package?  Have you confirmed receipt of the package from the bank?
5.    What communication, if any, have you had with the bank?
6.    Has the bank approved the list price?
7.    Have you received any other offers that you are waiting to hear back on from the bank?  Has the property been approved for a short sale prior and not closed?
8.    Does the loan have PMI (mortgage insurance) which may require another level of approval or a pre-payment penalty?
9.    Is there 1 or 2 deeds of trust?  Any other liens? 
10.    What is the name of the bank(s)?  Is the loan FHA or VA – again may require additional levels of approval?
11.    How long do you estimate that the lender will take to provide an answer to an offer?
12.    How far away from foreclosure is the seller?  Has a Notice of Default or Notice of Sale been filed?

Receiving the answers to these key questions should help you through the rough waters of short sales and into the smoother sailing escrow process.