SHORT SALES

SHORT SALES ARE TRULY THE WAVE OF THE FUTURE!

Sellers

Sometimes, due to one's circumstances, a home owner has no choice but to sell their home. In today’s economy, many home owners are faced with the fact that their home is now worth less than what they owe on it. In most cases your mortgage company will work with you and accept a lower pay off then what you owe. This is known as a Short Sale.

Unfortunately, many licensed real estate agents have not taken the time to learn the correct steps to process a short sale, yet market themselves as “Short Sale Specialists” to accept listings for sales prices for less than what is owed to the mortgage lender. Short Sales take a lot more work than a “Normal” listing, forcing the agent to gather information about your financial status, your hardships and what the cause is of this sale.   Interview a few listing agents, ask them short sale questions such as:

What is the difference between a short sale listing and a normal listing?
Does a short sale take more time?
Do you need additional paperwork on a short sale?

This will give you an idea if the agent you are interviewing has done a short sale and understands the process.

There are new Networks of Professional Real Estate agents who work with referral networks who refer the short sale home owner to the agent. The network processes the short sale paper work while the agent has time to concentrate on selling your home to a qualified buyer! Short Sale Resolution Network is one of the new and upcoming networks that takes pride in training their members prior to referring a listing to them.  The home owner is sent a list of items needed prior to the listing appointment in order to expedite the short sale process.  Some agents actually hire an escrow company with short sale experience to handle the process, but watch the fees; sometimes they pass it on to the homeowner!

Buyers

Prior to making a decision on which home you are placing an offer on, getting a pre-approval for a loan is your FIRST step to purchasing a home.   Your buyer’s agent usually will refer you to a qualified loan professional who will meet with you prior to viewing available properties.  Meeting with a good loan professional will give you a better idea of what you are up against.  Once you meet with your loan professional you will know the monthly costs of your new home, the maximum purchase price of the homes you should be viewing, and the total funds you will need available for the price you are qualified for.

When thinking about placing an offer in on a Short sale or a REO property, keep in mind there are requirements that the listing agent/or sellers will need.

A popular tick in the “Short Sale” industry is placing the home on the Multiple Listing service for much less than the house is worth, causing a buying frenzy and forcing the price up. In other words, buyers beware, if the price is too good to be true, it probably is!   This is not a bad game plan to get qualified buyers for the seller, but this little trick sometimes tends to kick out qualified buyers who are working with a buyer’s agent. There are currently no guidelines as to the ethics of Short Sales and in many cases the listing agents on the short sale tend to secure the property for buyers they are able to represent.  Recently, all kinds of stories are popping up where buyer’s agents who have spent hours helping their clients have lost their clients to the listing agent of a short sale!   Make sure the agent you are working with has successfully secured  Short Sale Properties and/or Foreclosures for buyers prior to working with you, if that is what you are after….a great deal!

Investors

When looking to secure the best deals out there many investors are turning to short sales vs. foreclosures. Why short sales?  Many short sales are properties offered at discount prices lower than you may even get them after the Trust Deed sale! In addition to the discounted price, a short sale property will still have the appliances in place and less damage than a property which has been vacant due to a foreclosure.