We are aiming to document the Top 6 phone screening in front of another young actor, Tom Cruz. Short Sales are complicated transactions that require a lot of experience on the part of the Short Sale Listing agent. Our suggestion is that if any of the answers makes you uneasy, then you need to pass on it because the odds are against your success.
So, here are the top 6 items to explore before you write an offer on a Short Sale:
1) Foreclosure Auction: Ask the San Jose Short Sale Listing Agent if a Foreclosure Sale or Auction Date or Notice of Trustee Sale Date has been posted on the property. These notices are also recorded in County records, but that could take weeks for it to appear. So, it’s safe to ask the Listing Agent about a Foreclosure Sale date. Granted it’s possible to postpone these sales, but without knowing how many times this sales have already been postponed there is no grantee that the lender would stop the foreclosure.
2) Notice of Default: A notice of Default or an NOD is typically filed when a homeowner has missed 3 payments. Each lender’s policy is different, but if an NOD shows up on the public records for the Short Sale home you are buying, then you are dealing with a time bomb.
3) Hardship: Nature of the homeowners hardship will have a direct impact on the approval of the Short Sale negotiation with the lender. Your agent should contact the Listing Agent for San Jose Short Sale and discuss the nature of the Financial Hardship. Just because a home’s value has declined that dos NOT mean there is a hardship! Only write offers on homes where the owners have a legitimate hardship.
4) Number of Loans: Ideally we recommend writing offers on Short Sales with only ONE loan involved in the negotiations. But if there are more than one and both are subject to the Short Sale negotiations, then you need to assume it will take more than 60 days for approval. And if there is a Foreclosure Sale date posted say 30 days, then you are dealing with a case that the home could be auctioned before the approval of the Short Sale! So, Walk away.
5) Pubic Records: Confirm the status of the property with County’s public records to make sure the property has not been foreclosed! We have lost count on how many times when we shocked the Short Sale Listing agent with the information that their Short Sale Listing has already been foreclosed and assigned to us as an REO!
6) Cooperating Seller: Make sure the home owners are cooperating with the Short Sale listing agent. If the owners have left the area and have abandoned the home, how are they going to sign papers to close with your offer on their San Jose Short Sale?!
Finally, Short Sales are require skills in corporate negotiations to determine how much debt they are willing to forgive. So, Contact Us if you have questions on buying Short Sales.