What is a CSP?
Real estate professionals that want to offer short-sale options to their clients are a special group that have agreed to undertake this complex and often frustrating task. It is not as easy as it looks. There is much more to completing a short-sale than just filling out some additional forms and making a few calls.
Certified Short-Sale Professionals will learn from a veteran, Jacob Swodeck, with over 10 years of experience in short-selling properties. In addition, you will be instructed by someone with current and relevant experience as he is a practicing professional. There is a big difference in short-sales today than what occurred in the 80s or 90s. As a CSP you will learn how to handle 80/20 loans, No-Equity Loans and Negative Amortized Loans all much different than the FHA short-sales that were handled by many agents in the past.
A Certified Short-Sale Professional (CSP) will be able to guide their client through the complex process of marketing the home, finding a willing buyer, working with the lender(s) and the other parties involved. A CSP will also learn how to determine if a property will even qualify for a short-sale and if the process will be worth the agent’s time and effort.
Why Become a Certified Short-Sale Professional (CSP)?
Many real estate professionals are venturing into the world of short-sales. They are discovering that those sellers in a competitive market are looking for every advantage to ensure they achieve both the highest possible price, in the shortest time frame and to ultimately avoid foreclosure. Sellers are becoming more aware of the availability of selling short but are unaware how to start the process and how much more complex the process of selling short, compared to purchasing the home, can be.
There are many advantages to adding short sales marketing mix. Not the least of which are an increased number of listings that will sell faster and reduce the possibility of the seller being forced into foreclosure. One of the key ways of getting there is by effectively positioning yourself and your product in your market.
Adding short selling to your skill set is a great tool to assist you in accomplishing both of these objectives. Being able to offer short selling as a value added service for your clients is an excellent way of “positioning” yourself ahead of the competition. Sellers are looking for the agent that can show them how to overcome their two greatest fears: 1) Being Foreclosed Upon and 2) Taking forever to sell.
By being able to answer their questions regarding what is involved in a short sale and helping them to develop a short sale plan you have already given them a huge reason to list with you. And the more you exercise that skill set the greater your reputation will grow along with your referral network. Nothing generates referrals faster than success and selling your clients home during a difficult time.
With training in the art of short sales comes the ability to view the client’s home through the eyes of the lender. You will be able to assist the seller in “positioning” their home to quickly sell and to put together a short-sale package that will be more easily approved by the lender. You will be able to point out the strengths of the offer and assist the lender in making a quick decision. As a short-sale professional you will be able to set your client’s home above the competing short-sale packages by positioning it to target the lender’s position
12. Show Me The Money!
The better a home shows - the higher it will sell for which means more dollars in your pocket. Non-staged homes are more likely to require price reductions in order to sell as opposed to staged homes, which are more likely to enjoy a number of offers, possibly a bidding war or a sale above the asking price.
Things You Should Know
Finding yourself in the position of considering a short sale is not a pleasant situation and one that should not be taken lightly. Here are a few things you should know about the process.
This is not a Do-It-Yourself project. You will need a professional that can navigate the process of selling your home, working with the lenders, keeping the buyer and dealing with all the other hurtles involved in this process. Your CSP agent is trained to work with all the parties to keep the deal going and will implement several industry strategies that are unknown to 99% of all real estate professionals.
This is a time consuming process. Unlike purchasing your home, the process of short-selling your home can take much longer. During this time you need a professional that is skilled at keeping all the interested parties happy; buyer, lender, buyer’s agent, and you the seller. Your CSP understands the complexity of the task that is a short-sale and has been trained to keep the wheels turning to get the process done as quickly as possible.
Rationale does not hold water. What we may think is rational may not work with the lender. The lender has veto power on just about every aspect of the sale, from price, terms, condition of the property, and even commissions. A CSP trained agent has learned the techniques needed to make sure offers are structured to get lender approval the first time through. The less time a lender must spend on the file the easier it will be to get your short-sale approved.
Tax consequences of a short sale. In the event that the lender approves the short sale you may be subject to different tax consequences such as claiming as income the debt that was forgiven. Careful consideration must be used when examining your options. Please consult a tax advisor or attorney. Even the best CSP knows when it is time to call the experts and your CSP will have resources available to answer tax questions for you.
Those agents that have earned the CSP designation have proven their ability to navigate through the short-sale process and accomplish the desired result of selling your home before the situation deteriorates more. This is not a process for the faint of heart nor is it a Do-It-Yourself. Possible damage that can become of a poorly executed short-sale plan runs from losing thousands in principle to having the property foreclosed upon. Look for the CSP stamp of approval if you are in need of short-selling your home.
Selecting The Right Short-Sale Course
Selecting the right course for you really depends on the form and style of education you prefer. While there are a number of pros and cons for each delivery method, it's a decision that is generally based on time and money. Within the real estate education industry today there are basically three methods of course delivery, each of which may have several variations depending upon the course provider: Home Study, Classroom and Online.
Home study courses provide a wealth of information for the student to review and study at their own pace. The format can be in book form or in a downloaded format from the Internet. Some courses contain audio supplements but the majority of courses are designed for the student to read the course and complete exercises or quizzes in a student workbook.
- Generally lower cost
Provides for student to establish their own schedule
Courses generally provide for detailed explanations of the subject matter
There is no instructor available although some courses offer instructor response by email.
There is no interaction with the course
It requires discipline on the part of the student to complete the course
Short-Sale courses delivered in the classroom combine live instruction with class interaction. This format also may incorporate the use of multi-media material in the delivery of the course.
- Live format with instructor
Only given on dates, times
Often requires travel and time away from business
Online study today has come a long way from its infancy a number of years ago. Today the online delivery format is highly interactive, utilizing an entire array of multi-media software to make the course both more enjoyable and user friendly. Many online courses offer interaction with an instructor via email. Online work sessions are now more readily adapted to the online student and incorporate much of the classroom breakaway sessions.
Generally less expensive
Can be taken anytime/anywhere at the student's discretion
Are now highly interactive in format
Requires discipline on the part of the student
No live interaction with the instructor and other students
The CSP Course Is Modern, Up to Date and Comprehensive. Focusing 100% On the Short-Sale Process!
Overview & Administration
Section 1: The Short Sale Market
A Recession-proof Career
Section 2: The Big Picture
What is a Short Sale?
How Do Sellers Benefit?
How Do Lenders Benefit?
When is a Short Sale Highly Likely?
When is a Short Sale Highly Unlikely?
ACTIVITY - Knowledge Check - Sect 2
Section 3: The Short Sale Package
Short Sale Checklist
Short Sale Application
Recent Financial Statements
ACTIVITY - Knowledge Check - Sect 3
Section 4: Short Sale Finesse
Open Market Seasoning
The Short Sale Offer
Appraisals / BPOs
ACTIVITY - Knowledge Check - Sect 4
Section 5: Disclosures and Protections
Possible Tax Ramifications
Recourse vs. Non-recourse Loans
ACTIVITY - Knowledge Check - Sect 5
Section 6: Short Sale Lead Generation
Short Sale Lead Gen Sources
Section 7: Foreclosure Timeline
ACTIVITY - Timeline interaction
Section 8: Practice
Practice Scenario 1
Practice Scenario 2
Practice Scenario 3
ACTIVITY - Labeled graphic interaction.
Section 9 Conclusion