How to list your short sale and get it set up for success!
Price it right and get it on market!
I usually list my short sales just under market value as they are a headache for buyers, and I want them to sell fairly quickly. There is never a reason to price a short sale over market. Remember, loan value is irrelevant here. Market value is the only value of importance.
List the property on MLS, subject to the short sale approval. I always include a custom short sale rider as an attachment on the MLS that is to be signed by all parties - sellers, buyer and agents. The rider details conditions of the short sale and sets expectations on how things will go regarding timelines for contingencies, commission rate changes on short sales, etc. Prep work and setting expectations are key to having a smooth transaction and closing.
Talk to the lender.
If you haven't already, get a third party authorization signed by the seller and submit it to the lender so that they will speak with you regarding the loan. Call the lender. Find out who the investor is on the loan (FHA, VA, USDA, Fannie Mae, Freddie Mac, private investor etc.)
Servicers do not set short sale processes, investors do, and their processes all vary slightly, so you want to know who you are really dealing with. The bank that they make their payments to is generally irrelevant, as they are almost never that actual owner/backer of the loan.
Let the lender know you are doing a short sale, and ask them for any specific documents they need the seller to complete. They will all have their own forms.
Find out your minimum marketing time.
The owner of the loan will usually have some minimum marketing time requirements. For example, FHA requires 14 days of marketing time before the seller can accept a contract, Fannie and Freddie require 5 days including a weekend. VA does not have a requirement. However in any case, you actually don't want to sell the home too fast, as it may cause problems later when it is time for the lender to have a BPO and value the property. Going under contract immediately increases the chances that the lender will come to the conclusion the property is under priced, and this will cause problems and delays later.
Start showings and get the seller working on documents.
Your listing is on track! Now you'll wait for offers, and if none show up within a 2 week period or so, it's time to drop that price until they do! FYI, you probably don't need the sellers financial documents until you have a buyer (unless it is an FHA loan, in which case you can get started anytime).