Short Sale Expert Advice, Short Sale Agent, Short Sale Negotiation
Buying a Short Sale home is NOT for the faint of heart cause there are too many moving parts including a lender who could be trying to foreclosure on the property and a stressed seller who might NOT be sharing all of their plans with their listing agent. In this post we will explore all the best kept secrets in having success with Short Sales.
So, if you find your dream Short Sale Listing you should discuss these 10 questions with your agent before he/she writes you an offer:
1) How many loan are on this Short Sale property : Depending on the number of loans the Listing Agent of this Short Sale could be required to negotiate with EACH lender to obtain the approval for the sale. We recommend to our buyers that they avoid homes which have more than 1 loan being negotiated to keep the risk manageable.
2) Who are the lenders : Not all lenders are created equal as most of Home Owners have experienced by now. Large national lenders have now invested huge resources and staff to help expedite Short Sale approvals specially with State mandated laws such as the one in California which requires a lender to decide on a Short Sale approval request within 30 day. If the home you want has a out-of-state lender that you have never heard of, then your agent should check his Short Sale network to find out the history and experience of other agents who have worked with this lender on a Short Sale transaction.
3) What are the loan and lien types? Have they paid their property taxes? Are there any private liens on the home?
2) Who are the lenders : Not all lenders are created equal as most of Home Owners have experienced by now. Large national lenders have now invested huge resources and staff to help expedite Short Sale approvals specially with State mandated laws such as the one in California which requires a lender to decide on a Short Sale approval request within 30 day. If the home you want has a out-of-state lender that you have never heard of, then your agent should check his Short Sale network to find out the history and experience of other agents who have worked with this lender on a Short Sale transaction.
3) What are the loan and lien types? Have they paid their property taxes? Are there any private liens on the home?
Find out if the owners of the Short Sale Listing have paid their Property Taxes along with their personal Income taxes. It’s also important to note that if they have NOT paid their IRS income taxes, they could become attached to the property as a lien. That’s why a knowledgeable Title Rep is critical in your team to steer your Short Sale translations away from trouble.
4) Is the 1st time they are attempting a Short Sale: If the Homeowners have attempted a Short Sales in the past 18 months and have NOT completed it, then the odds of this lender approving their Short Sale request are slim to none.
5) When was the last payments made on the property: This is an important piece of information since most lenders will NOT approve a request to postpone a Trustee Sale (Auction) date; if they have not received a payment in the past 12 months.
4) Is the 1st time they are attempting a Short Sale: If the Homeowners have attempted a Short Sales in the past 18 months and have NOT completed it, then the odds of this lender approving their Short Sale request are slim to none.
5) When was the last payments made on the property: This is an important piece of information since most lenders will NOT approve a request to postpone a Trustee Sale (Auction) date; if they have not received a payment in the past 12 months.
Click below if you want to find out if you qualify for a Short Sale.
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