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Let's Get Down To The Truth About Short Sales

There have been so many posts written about short sales on Active Rain lately. When I first started blogging on Active Rain in June of 2007 there was only us and Dan Forbes that were writing series on how to do a short sale. At that time I would say that 90% of all the comments that we received were that agents were refusing to list or sell short sales. In fact, there were brokers who dissallowed the agents in their offices to participate in Short Sales.

short sale agents in Florida

It only took about a year or so before agents started to realize that if they did not at least show their buyers short sales that they may not stay in this business. Although I don't believe that to be true because there are many niches to conquer in real estate- but that is another subject. There are now designations and certifications so you can call yourself a short sale expert even if you have never done a short sale through to closing.

As soon as Nestor got his real estate license in Texas many moons ago- his very first listing was a short sale and after they had an offer he closed the short sale in 2 weeks. Yep, 2 weeks is how long it used to take to get a short sale approval. We did short sales back in the 80's recession also.

Short sales are not new. They are not foreign. They have been around as long as mortgages have been around. Do you remember or still see those signs anywhere in your state from the company, We Buy Ugly Houses? They were doing short sales long before most agents knew what the term meant.

Even as short as last week, here in Florida- I was asked by a real estate agent who was setting up a showing for one of our listings, "What is a short sale?". I was about to ask her what rock did she just crawl out from under, but instead I educated her about what a short sale is and how to write up an offer for a short sale and how to explain it to her buyer.

Of course writing short sale posts on Active Rain is great for Google Juice. I have seen a huge increase in real estate agents on Active Rain writing posts about short sales and many of these posts are being featured. The only problem with that is that much of what is being written are simply not facts.

Much of what agents write about is one or two or three listings that they have closed on as short sales. While it is fine to write from one's own experiences and tell the process as it pertained to that particular short sale it is not a good idea to write blanket statements about short sales.

I highly recomment that if you are not an authority on short sales that you do not write articles as an authority. Instead for your protection and to do the consumers justice with correct information please preface your posts with disclaimers:

If you are writing about certain customs in your state- let the public know that your post is about your state. This way a seller in Florida does not read a post from someone in California and form the wrong opinion such as- the state of California is a non deficiency state for owner occupied primary residences and the state of Florida is a deficiency state. This is a huge difference.

I don't think that consumers understand the law in different states so if you are writing in generalities- don't! This is NOT fair to homeowners who may have found your blog online and then take your word as gospel.

If you are basing all of your short sale article on just one or two of your closings and you are sharing that information to the nation and the world in a public post- be careful. You need to make sure that you crossed all your T's and dotted your I's. I read posts written here on Active Rain where what transpired during the short sale process was NOT in the best interest of the seller. This is not information you want to share with the world and have someone come back at you later.

Know what a short sale is. Even today I am reading on Active Rain definitions of what a short sale that are not true or factual.

A short sale is a seller's lender agreeing to accept less than what is owed to them. Period. End of story. Nothing more, nothing less.

Anyone can ask their lender to accept a short pay off. There are so many articles giving false information on the Internet and on Active Rain about sellers' having to qualify and who can get a short sale approved and who can not. This is extremely unfair to the consumers reading your blog. You may not want to list certain short sales but the fact is that anyone can ask their lender to accept a short pay off. If you do not want to list certain short sales because of your judgment that is a call you make because it is your business but don't spread it all over the Internet that property owners of certain circumstances can not do a short sale. Your ethics may not be their ethics.

The extent to which it will be approved will depend upon the real estate agents' ability to negotiate. I will write another post about that.

I want to apologize that my short sale book is not ready. I am on my last few chapters and then it will go to the editor.

Let's Get Down To The Truth About Short Sales by Katerina Gasset is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.

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Let's Get Down To The Truth About Short Sales was first published on South-Florida-Luxury-Living.com

Posted by Nestor & Katerina Gasset Realtors® Wellington Florida Luxury Homes on 04/28/2009 03:52 PM

Comments (130)

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130 Comments on Let's Get Down To The Truth About Short Sales

APR

Well done and many thanks....short sales are still tough to get closed--no matter how good you are! the banks are slower than ever....files keep getting lost--new representatives take over the file....the list goes on and on!

The truth in our area is that inexperienced agents are lowering prices well beyond market value and then listing the home as a "short sale" after ineffectively marketing the property far above market value, producing no results.

The result is that the bank drags along for months and months just to say "NO". So neither style worked and buyer brokers fear showing anything that is in the MLS as a short sale.

Only pre-packaged or pre-approved short sales should be in the MLS....

Michael- I agree that is the problem with inexperienced short sale agents. However, we and others are not inexperienced.

I disagree with pre- approved short sales and this is why- it will come back to bite you: The BPO gets done ahead of time on a pre- approved short sale. That BPO is usually wrong and done by inexperienced BPO agents who don't even live close to the market and don't know how to do one right. That BPO then determines the price which then the lender uses to determine what they want to net. Then they tell the listing agent what to list the house at. Then you don't get any offers. So the seller is now at a higher risk of foreclosure. Who determines when to lower the price to the true market value?

We want to be in control. We have a pricing strategy that works very well. We have one condo right now that we have been fighting for over a year with a lender who is stuck on a BPO that is not even close to what the market will pay. Finally, after a year, and using our pricing strategy to prove to them their BPO agent had no clue- we finally got them to agree on an offer that was resubmitted at the market price.

It is about persistence, not giving up, knowing you are doing the right thing for the seller.

If we get a NO from the lender we move on to the next phase, getting another offer from another buyer. But we rarely get NO. We do get counters that don't fly with the buyers and then we just get another buyer. Katerina

Michael- It is a very simple formula that agents can follow to price short sales:

Know what the last closed comp sold for in the last 30 days.

Know that the lender is going to agree to 85% to 87% of that price.

List the property right above that last sold comp.

Reduce it every 21 days to show the lender a pricing history.

Until the price is within the range of that 87%.

Then you will get multiple offers.

We get multiple offers on most all of our short sales and they all close.

I can't wait to read the book! I work on most of the short sales for my office, and want to blog about it because I know this is a niche for me, and an area that I excel at, however I have not written much at all for these exact reasons.

I 100% agree with you. .there is a lot of so called experts because they may have closed a couple short sales. .mastery comes from years of repetitive experience

Very good post --- I have been reading a lot of blogs about short sales and have just wondered to myself about what they were writing. Please keep me in mind when you finish your book --- when do you find time to to so much --- you are a wonder-woman.

mama Liz Signature

There is another type of short sale. When the seller owes more than the market will pay for the home they wish to sell and they bring a check for the deficiency to the table.

We did quite a number of them back in the early 1990s and have done a few in the past 12 months too.

The banks are paid in full.

Great writeup on short sales Katerina. It is such a significant part of the inventory nowadays that is moving.

Thanks for the pricing formula, Katerina. I'm already using a similar version but didn't know about the 85-87% range. VERY informative. Thanks much.

Where would I be without ActiveRain and bloggers like you? In the dark!

Katerina - For me, you are one of my favorite reads in regards to short sales. My knowledge of this has almost exclusively came from AR and contributors like yourself. Thanks for another informative article on this ever present reality in today's market.

I did my first one 16 years ago. I had done a few since but my team member Charlene Humphreys, also my life's partner has been going crazy doing more than a single agent could handle, and this is in Oklahoma where only 4% of MLS sales are distressed. I have now joined her and added my assistant to help. We should close over 200 this year. Oh to be in Florida. It's hard to fathom how many a team could do in areas like that.

Thanks for sharing your pricing strategy. There are a lot of different practices being pushed out there. Some good and some bad. I primarily list short sales and rarely work the buyers side but when I do I'm always shocked at how some of the agents work them.

This is a good reminder to everyone. The last time we had this many foreclosures and home owners upside down was around 1999-2001. A very large percentage of our loans in this area are VA loans, and I became very proficient at listing, selling and getting VA short sales closed in a reasonable period of time. In our current market, it's taking much longer to get properties under contract AND it is taking the lenders a very long time to complete a VA Compromise short sales. Buyers and sellers both need patience to see the process through to closing.

Katerina - Thank you for such a great reminder. Just because agents have done a few does NOT make them the expert. It's also great to point out how each area has differences in the process or customs. I'm looking forward to reading more of your posts about short sales - you have a valuable wealth of information and I appreciate you sharing it!

Nestor and Katerina,

I'm looking forward to your book. Let us know as soon as it comes out.

Lenn,

My wife and I bought our first home a few years ago. The attorney's office called me in a panic two days before closing to let me know that the seller was supposed to bring a good chunk of money. We knew that when we signed the contract. He brought a check and his lender was paid in full.

Hi Katerina, Thanks for a well written summary on this topic. Hopefully many agents will reads it and adapt their skills to it.

Lenn- You are absolutely right. Our attorney just closed on her own house as a short sale. When she called the bank and they told her that her credit had to be ruined and in arrears in her payments, she made a choice, she brought $40,000 out of her 401K to close on the house. It was still a short sale, but the owner came up with the difference. She needs her credit to put her high school kids through college.

Katerina, I thought every thing we read on AR was true. Now I have been disillusioned(is that a word?):) I did my first short sale about 10 years ago. They sure were simpler back then. It took about a week to get approved! I did just close one with Wells Fargo that was approved in less than 2 weeks. Wells Fargo has it happening!!! Very good post Katerina.

I am surprised how many of my clients have never heard of a short sale. I have done some and they are not fun, but necessary sometimes. Thanks for the post!

Katerina: What an excellent post. Your command of all the in's and out's of working short sales is just awesome. Thanks so much for sharing.

Your definition of short sale is certainly correct but some may not connect the dots to realize that the list price doesn't mean much since the seller doesn't care and the lender hasn't been consulted. That's a biggie!

Richard- Please read my comment to Michael, the second one #4. Pricing is extremely important in listing short sales. In fact, it is what will make or break the deal. Agents who just guess at these numbers are doing their clients a huge disservice.

Excellent post Katerina. There is no one size fits all gospel for short sales and to give the impression that is the case is simply false. These types of transactions require patience and persistence...qualities that seem to be in increasingly short supply in some quarters. Education can make a big difference.

Most buyers new to the market dont know what a short sale is but all agents BETTER know this.

Just like any listing, each should be considered carefully and sometimes turned away. Thanks for the article!

Great Info, Thanks

Hi Katerina...I'm about ready to close on my second short sale (we have not had that many in my market area) and both have gone smoothly other than a bad appraisal on this second one. That is being addressed. I've heard horror stories, however, I've been pleasantly surprised how mine progressed.

I've heard that Florida is one of the four states with the most foreclosures. Perhaps there is similar stats for short sales. Hopefully they will begin to lessen as the housing market has taken enough of a beating.

Kate

Thank you very much for your generosity. You are absolutely right about the writer's responsibility and full disclosure. Buyers and sellers need asistance, not additional confusion or misstatements.

I was one of those agents who rejected to deal with short sales as we did not have too many of them in our area. As you mentioned, another niche to work with was big enough. Time changed. As an example, I am in the middle of a short sale which I conduct for my sellers. Hopefully everything will be just fine. Persistency, negotiation skills and ability to prepare upfront plus information received from such reliable source as your posts should help me and my clients succeed. Looking forward to reading your book!

I have learned so much the last two years. Knowing the right questions to ask up front is one of the keys to knowing how to move forward. Interesting Bob and Christa are at a conference in Chicago and a really big named Life Coach/Realtor is there, Christa txted me and said, and I quote,

"Quit working with buyers on short sale! Focus your energy on someting else, if and by the time is closes your negative in the money and you'll drive yourself crazy".

Not sure I agree with that, but they are stressful, no doubt.

"A short sale is a seller's lender agreeing to accept less than what is owed to them. Period. End of story. Nothing more, nothing less. "

Keep it simple stupid. :)

I wish every buyer in America could read that explanation.

Katerina.... I don't know much about short sales, just the basics... and enough to close them on the mortgage side of things. But your argument is the same that I have when it comes to so many people writing blogs about FHA loans. It frustrates me to no end when someone even gets the basic of FHA mortgages to be wrong. I hope this gets out there in front of so many.

Overall, you are right, many just write, right or wrong, because they know they will get Google juice...

jeff belonger

Katerina......excellent article. Esppecially the part of different issues in different states. I've read quite a bit lately on AR on shorts and some of it just doesn't apply here in AZ. Shorts did used to much easier because they're weren't that many and banks could handle them fast. Now......it is a matter of bingo bango....follow the simple process you wrote so well. Excellent information

Thanks everyone for your comments and I have read with great interest every one of your comments. It is Nestor's Birthday today so I don't think I will get back to each comment. I will try to get to the comments that contain questions or make statements that I feel need to be addressed.

Katerina, just wanted to say thanks for the article. Whether your an "expert" or not, verifying that your article one a particular subject, like short sales, is based on a specific state's laws seems like a no-brainer to me.

I think that using the term "pre-approved" is wrong simply because the lender's approval is based off the offer and they can change their minds, too. Also, you're right. A short sale is simply the lender agreeing to take less than the full amount owed. A seller that can bring cash to the table to make up the shortfall in the loan balance is not a short sale.

Katerina, I sent two of my favorite colleagues to your blog today. We see so few short sales in the District that when one shows up, you can bet that one of the two agents involved is totally clueless.

Thanks for touching on the point of stating what state you are posting about. A lot of people including agents dont realize how different states can operate. No one is an expert in every state.

Katerina, great points you have noted. It's so true that when an Agent tags themselves with a Title that they suddenly become an expert and we all know that whatever Title you have it doesn't necessarily make you an expert. One must have the knowledge, experience and passion that goes along with the Title I recently added CDPE as a Title for me as I was in need of continuing education credits for my license renewal and I thought what a nice title to have to go along with the knowledge that I already acquired. Nothing to take away from the class as it was a very informative class for those just getting into the thick of a short sale and really should be a requirement for anyone wanting to tackle Short Sales when you don't have the knowledge. Many people acquired that Title on the same day that I did and I know that everybody wasn't in the same boat that I'm in.

I really hate when so many trash short sales when they're not knowledgeable in them. Like you, I have had great successes with my Short Sales in getting them closed so it just bothers me to no end when somebody throws a Short Sale under the bus!

Katrina: Great information.. Just today I had to explain the Short Sale process on one of my listings.. Many are not sure if the seller accepts, why the lender has to give their approval. The only thing short about a short sale is the payoff to the lender.

Bullseye. It is a big pet peeve of mine that anyone who attends a 2-hour seminar at the airport hotel bills themself as "specialist" or "expert" and proceeds to screw deals up.

I do short sales as they are part of our business. Not my favorite thing to do, but a necessity. Thanks for your insight.

Short Sales may be great in Florida, but they are a nightmare in California, and if your seller's loan is with Countrywide, you might as well plan on camping out for up to six months in hopes you'll ever hear back from them.

Unfortunately, most banks are ill-equipped to handle all the Short Sale requests they are bombarded with on a daily basis. Even though you may hire "expert negotiators," your buyers still need to be prepared to WAIT 4-6 months from the banks in this area.............and most buyers wind up walking!

Short Sales may be a great option, but until banks can hire personnel to process these requests, you must be prepared to sit and wait for 4-6 months to find out if the bank will even work with your seller.

I find Short Sales a terrible waste of time and frustration in our area!

I'm looking forward to your next post. I've had to work hard - but have closed all my short sale listings. Not as many as you, but enough to know the agent has got to work, work, work for this niche to work. (Wow - I used the word, 'work' five times. Don't believe I've ever done that in my life!)

Great post! I can't agree with you more. I occassionally check out the posts on short sales here on AR and at times log off wondering where people are getting their information. My company assists in the facilitation of short sales and process them a couple hunderd at any given time. We talk to the lenders all day long, everyday, and even then, we are at times surprised that they yet again changed their procedures. When someone asks me if they qualify for a short sale, my answer always is "do you owe more then market value'?, the answer being yes, then the answer to the homeowner is " the loan qualifies for a short sale, it is up to the lender to decide if the borrower (seller) qualifies". While short sale have been around for years, today's short sales and the incompetency of the lenders staff is a new world. Patience and committed buyers will get you to closing, getting the approval is not the problem. That's my 2 cents.

What do you do when you took the short sale class, got the designation, and now read your definition and it is different than what the certified teacher taught?

I'm in Ga just for the record. Todays class on Short Sales from agents with 7 yr experience doing REO and at least 2 years short sales say every Lender has thier own rules. It's not like FHA with hard and fast rules.

Just trying to learn all I can to help my clients and myself survive an ever changing market.

I do appreciate your insights.

Thanks for the post...Happy Birthday to Nestor! I know what short sales are and I do have to admit that I am one of those Realtors that have stayed away from, mostly out of a lack of knowledge. But I have been working on that lately, in fact I am getting a quick education because I am negotiating one right now for a buyer, wish me luck and keep up the informative posts.

Dale- I don't think my definition of what the short sale means is different that any short sale course you take.

A short sale is a seller's lender agreeing to accept less than what is owed to them. Period. End of story. Nothing more, nothing less.

I will challenge anyone with a different definition.

2 years of doing short sales, how many did they close in that 2 years would be my question. Nestor has been doing them since 1995 and I was doing some back in the recession of the early 80's.

To answer your question though: Every lender may have different customs but the more toxic loans that Fannie Mae and Freddie Mac buy, the more alike the short sales will be. Fannie Mae came out with their guidlelines that ALL of their servicers have to follow. That is the bulk of the conventional loans out there.

You learn the rules, then the rules change. One thing you can be certain of is that rules change and rules are made to be broken. Katerina

Nancy- This is a matter of perspective and mental attitude. If you say they are a nightmare, they will continue to be so. Yes, Countrywide is awful everywhere but that is something we already know going into it and it is then dealt with accordingly. Plan and work the plan. Delegate what you don't like to do. We like to control our short sales so we don't give them away to companies. Instead we hire our own people to do what we tell them to do to assist with paperwork etc.

I would think that for primary homeowners it would be easier to get them off the hook in California since they are not bound by deficiency laws in foreclosure. So the lender has not deficiency threats to those homeowners so that in effect gets rid of one of their cards in their hand giving the homeowner the upper hand.

IT is all about negotiations, follow up, having a system in place to do the daily chores, etc.

It is no more difficult than trying to sell a house that you have listed in a buyers market without short sales. They all were a bear to get through compared to the hay day years. Since I sold real estate when Jimmy Carter was Pres with 21 % interest rates and made it through, I can get through any market with ease.

It just comes easy to us because of our mindset. We see it as an opportunity just like the other niches we have worked. Katerina

Happy Birthday to Nestor!

Fab post, by the way. In the middle of a Countrywide Short Sale right now. (or whatever stage phase 3 is). Do you have a chapter devoted to certain lenders? :-) I'm no expert, but I am very excited about your book!

Because your blog has such a huge audience, I'd like to mention that agents should also be careful when they answer Trulia Voices. I'm cringing at all the out of state advice! Just one more way to get sued!

Well written!

If I may add this....not every upside down seller should do a short sale.

If the Seller can pay the difference back between what is owed and the sale price and they

want to save their credit..(Remember, a SS does have the virtually the same credit ramifications as a foreclosure)

the seller should considering simply paying the difference back over time. I know its a rare seller who

will do this but, you need to know their options.

Many sellers who have other assets, are in security sensitive jobs (military) will want to preserve their credit.

Hope this helps!

Tim and Julie Harris

Can you answer real estate complaints ..

Great post. I hate reading posts from people in California about don't worry about a deficiency judgement.

The irony...

"Know what the last closed comp sold for in the last 30 days. Know that the lender is going to agree to 85% to 87% of that price."

That statement is not true. The lender will agree to a certain percentage of the results of the BPO, not the last closed sold comp. The percentage will depend on the prices in your area. Your 85%-87% might be too low or high elsewhere.

Also, short sales of the 80's are not the same as the 90's. Hell, the short sales of 2006 are not the same as the short sales of 2009! It really doesn't matter how many years you have, but your ability to stay on top of the learning curve and to maximize your ability to profit while protecting your clients.

Finally, you gotta love what you do. I love short sales and find no difficulity in doing them. I find it challenging and exciting. Who knows, maybe I am a few french fries short of a Happy Meal! I love to teach other people and learn from others as well. It's people like you that I like activerain. Your willingness to share info is just great. Thanks for the post.

Amiri- We were just told by every single BPO agent in the last month doing BPOs on our short sales that they were given specific instructions that they HAD to get comps in that neighborhood that sold within the last 30 days. Most of these were Fannie Mae and Freddie Mac note owners, plus a couple from Chase and Wells Fargo note holders.

Thanks for your compliment:)

Michael Caruso wrote: Only pre-packaged or pre-approved short sales should be in the MLS....

Since when does a lender approve a short sale without a bona fide contract signed by a new buyer? Without a contract, they will say only, "maybe"--if they say anything at all. 99 times out of 100, a SS package without a contract goes into the shredder. That's why the lender says, "We haven't received your (incomplete) SS package." They're not required to process nor do they archive an incomplete SS package. Many times, the lender requires the new buyer's proof of funds, too.

Here-Here...I spend too much time dispelling the myths that my Short Sellers hear from their Friends, Family and most of all, other Realtors. The amount of disinformation out there amazes me. We're in one of those Industies that fosters the "You're an Expert When You Say You Are..." mentality. It is no wonder that in Arizona, the "stats" indicate that only about 5% of Short Sales successfully close when you have a group of "Experts" who have closed two transactions who are in way over their heads. Kudos to you for confronting the reality. Short Sales are the deep and of the pool; Please dont dive in unless you can swin or at least have a Life Guard on Duty!

I have no doubt that your short sale book will be full of lots of useful knowledge given the depth of your experience with short sales.

What do you think of the CDPE program and designation?

Brent- When I first got my RE license over 20 years ago I went to work for Merril Lynch Realty. They had a very strict policy in those days. Every new agent had to be mentored by a top producer. I got this wonderful older lady in her 60's; I was 23- she got 50% of what I made and it was the best practise and the best education I could ever get- well worth what I paid to be by her side and learn the ropes from the top producer.

I wish all new agents had to be mentored. I wish companies had that policy.

IF you are going to do short sales partner up with agents who do know the ropes and let them guide you through the maze.

Thanks for the comment. Katerina

APR

Happy birthday to Nestor! Interesting short sales post Katerina that has seemed to spawn a lot of discussion.

Katerina

You said: "Know that the lender is going to agree to 85% to 87% of that price."

I just wanted to clarify what you meant by "know" that the lender is going to agree to this percentage. Did you mean that you would know that the lender would agree to this figure in advance because you have directly communicated with the institution and they told you it was an acceptable figure? Or do you mean you will know that they must agree to this price due to your knowledge of the current market alone? Hope the question makes sense (I have a grand total of ZERO short sales but am interested in this topic).

Well written... I think you covered everything that I've seen in the past week...

Mark- There are some investors holding notes that do not use this formula but Fannie Mae and Freddie Mac notes do fall within this category. This is not something that they tell us ahead of time although we have learned through many discussions that when we get their net what they are basing that figure off of. Here in Florida in our area, that is what they are getting and that is what they are taking. Hope that helps.

Nice concise definition of what a short sale is! I am a civilian, but have been quite active buying and selling real estate over the last 30 years. The problem I see with short sales is the "list price."

I recognize that a seller is never obligated to sell a home even if presented with a full price offer but I believe they are at least obligated to pay a commission upon receiving an offer that meets all the terms of the listing. At least here in California that is the case. It seems like the list price in a short sale scenario often comes out of thin air. The seller is not concerned with the price because they will not receive any proceeds. If the lender has no obligation toward an offer at the listing price either, what weight does the list price actually have?

Lacking a seller with skin in the game, it seems that short sales may be priced way below market perhaps in the hope that it will attract quick attention and perhaps multiple offers. We buyers come along and see a short sale priced very low and natually think we should be able to buy any comparable house on the street for a similar price. We base that bogus conclusion on a fictitious price that was possibly pulled out of the air.

With a foreclosure the bank that lists a property at least has some obligation with respect to a full price offer. Even in the well reasoned short sale scenario that you describe, there is no obligation on anyones part to do anything upon a full price offer. It is kind of a bad situation, don't you think?

It does seem to me as an outsider that it should be necessary to obtain some assurance from the lender, or someone with authority to accept an offer, regarding the list price on a short sale so the list price actually means something.

I agree 100%, and thank you for having the courage to write what should be obvious-that 99% of agents are not qualified to do short sales. Short sales are not a real estate issue, they are a banking issue, and unless you are trained in or have experience in banking, you have no business doing short sales.

Katerina,

First, through the grapevine came the new of Nestor's Birthday. Happy Birthday, Nestor.

It is interesting that in the comments you have sometimes the very same thing you are warning against in the blog. Sometimes the complexity is replaced with a simplicity, hence the calls for getting some sort of assurances from the Lenders, or declaration of Short sales a banking issue

What was the most important for me is the State specifics, like deficiency state or not. You are right. I tend to forget to keep it in the view, and it changes the whole taxation thing.

Thanks for the reminder

BTW, if 30 day fresh sales in the neighborhood, it is tough. many of them did not have a single sale in 2009.

We took a 2 hour course and titled oueselves "experts in short sales". We blog only in Fl and we only comment on things we have done and know. We know that pricing is key. We use the IMAPP comps for our listing price range. We do a BPO when we submit our short sale package/ We do what we call an impeccable short sale package. It can be up to 80 -100 pages. We fax it and check it every 3 days to make sure it has been received. If after 2 times they don't acknowledge receipt, we get an address and overnight it and get it certified.

We're sure we need to learn more and it's great to have active rain as a back up. Thank you for your input. If you have a referral for us we pay 25% and will work like a dog to get it done. We have a high success rate.

Kieran and Cecelia

Katarina, As usual, your post is full of excellent information and I agree with you about the mentoring. Thanks!

Great post Katarina. Most agents do not understand the process with SS. The more prepared you are and if your package is complete when you send the offer in, you may have a good shot getting a reply. Buyers need to be educated that the process to close may take up to 2 months. I have two short sale listings currently and the offers to date have been way below market price, they do not even get submitted to the lender.

To Katerina & Nestor,

THANK YOU, THANK YOU, THANK YOU! I have been so upset to read many AR people's 'blogs' which do not have real fact or truth in them. We have a responsibility to the reading public to write with proper knowledge about a subject. What a person may 'think' they know about short sales, is usually not applicable in all states as you mentioned.

Other than the obvious short sale discussion, the more important part: AR bloggers must write RESPONSIBLY! It creates a lot of mis-information and confusion during an already frustrating and stressful time.

Too many times I have read folks' blogs who write things regarding the Dow or financial market trends and try to be a stockbroker (with obvious lack of abilities or facts). Hey, you are a REA, not a DJIA licensed Financial Advisor so don't mix the two please. Sometimes, I read a blog which simply spews out a twisted version of actual and lawful facts. Thank you for mentioning STRONGLY: Do not unintentionally mislead the reading public...with ANY subject you have little to no true experience with which to responsibly write a blog.

Yes, the AR site brings lots of business, but please do not misuse this wonderful Goggle juice to muck it up for innocents who are trying to figure out the best course of action for their financial lives. WRITE RESPONSIBLY!!! Thanks Katerina and Nestor!! Best regards, Kathleen G

I have to take exception to some of your article. Short sales in general are the same. Specific state requirements may add to the short sale process. Like you said a short sale is the lender accepting less than what it takes to pay off the mortgage. What you did not include in that statement is ...less than what it takes to pay off the mortgage, penalties, attorney fees, plus the cost to close the deal - Realtor fees included. I don't think anyone should call themselves an expert in short sales. Mortgage companies have their own standards on what they will accept - there are no industry standards - just generalities. Getting a deal closed in two weeks does not make someone an expert. Sounds to me like the process was well underway when the Realtor stepped in with a willing buyer. I'm of the opinion a seller is better off doing a short sale rather than letting the home go to a sheriff's sale. I'm also of the opinion that as a listing Realtor, I have an obligation to get as much as I can for the seller. I've done my share of short sales and everyone was different because they involved different lenders. Just when I thought I knew exactly what was required they changed the rules. This is an evolving process and still in it's infancy. My advice is to do your job as a Realtor and work on behalf of your client, communicate with the lender, recommend your client speak with an attorney to get legal advice and disclose everything. Oh, and make sure your E&O will cover your mistakes.

Katerina---Excellent advice for the bloggers and the readers. Not only should one not post as if they are an expert when they are not, but we should all know something about the author before taking a post to heart. Michael's point and your comments about some agents actually pricing a home lower than necessary should be illegal---it hurts the seller, the community in which the home is located and the entire market!

Great advice about short sales. It's interesting how much has changed in regard to short sales and real estate over the past couple of years!

Katrina, looking forward to your book. Every short sale I have done is different because of the lenders. I have closed one in 14 days and then the next one took 4 months. Thanks for sharing your experiences.

I can highly recommend the CDPE (Certified Distressed Property Expert) two day, 11 credit course through your local Board. I took the course along with 100+ others some of whom flew in from different states -- I'm in Boca Raton, Florida. Not only was the instructor extremely knowledgeable he captivated our attention for two days bringing humor to the mess some of us have made of short sales by pure lack of understanding. The main focus of this course was the underlying compassion that we as agents must have for what these sellers are going through. These are tough times and if you are going to represent a seller to help them get out from under water and go on with their lives you better have the right information to guide them in the right direction. A foreclosure on your credit can mean of lifetime of explaining history where a short-sale may not affect your credit except in instances where you have missed payments. Not everyone is in arrears, but are preparing for the future when they know they will no longer be able to keep up. We need a team of professionals to help the Sellers we represent make the right decision. I've been in real estate for 22 years and short-sales are a huge percentage of our market inventory now and growing ever larger daily. I am more than eager to take on a short-sale listing where I know I have the capability of helping and to perhaps intercede where another agent may being doing the Seller an injustice due to no other reason but not being schooled in this complicated, yet rewarding arena.

Gina Finsilver, Lang Realty, Boca Raton, Florida

Thank you for the post- Isn't it common sense that agents know real estate issues/practices/laws may differ in all 50 states... therefore, as an agent in Florida, I know that my practice is handled differently than an agent's practice in California. I will also add my 2 cents to Nancy's comment- in my experience, Countrywide is the absolute worst lender to work with! Now that they are Bank of America, I wonder how this will change!

True. I am no expert in short sales. I hope that your upcoming book will give some guidance to all of us who do not know all of the facts regarding short sales. On the other hand, are there some facts that are true no matter what state you are in regarding short sales? Just curious to know if I was one of the offending parties....

This is a great blog....BUT from the mortgage side I have this to say...most contracts I receive that are short sales never close because the seller can't clear up their title issues or the sellers bank takes soooo long to respond (if at all) we blow 2, 3 or even 4 locks. Within the 6 to 12 months it takes to close on these deals peoples lives change....deaths, marriages, divorces, jobs lost or opportunities in other states.

There are so many fantastic properties to buy right now why waste your time on these. Maybe if we all move on to transactions where the sellers actually participate the banks would get a clue and step up to the plate. But, like I've said before.... why would they? There is no motivation at all. The tax breaks for the investor comes with a forclosure not a short sale.

Melissa

Thanks for the great reminder on blogging as a whole. Whenever we share our knowledge and experiences we must make sure we be clear about the fact that it is just "my experience" of what I have seen or done and help others to take it in the correct context.

Robby Leviton

Great article. I have been doing short sales just about when the banks started tighten up. My broker who is an economics major said learn then! I did and I'm glad I did. I hated my first one. I never wanted to do another one. But along came another then an other. That's all I do. I'm quite the expert.

Liz Diaz

As everyone else has said, excellent article. Straight forward and to the point.

I particularily liked the comment on taking a 1-3 day course and getting a designation. First, almost all these designations have no meaning to the lending industry. Second, calling oneself an expert after bit of education is legally very dangerous. We are starting to hear some rumblings from the legal industry that could be targeting real estate agents and their companies for botched short sales.

Education is important, don't get me wrong. But anyone can make up a designation. It's a tried and true sales tool for the trainers and they are using it.

I, myself, rarely use any of the many designations I have "earned" (read "bought") over the years. Education without experience does not an expert make. IMHO

Steele V. Propp, Exclsuively working with Foreclosures and REO

Amongst other things, when it comes to the sales contract for a short sale where the seller is bringing the deficiency to closing to satisfy the mortgage in full, the contract should have an affirmative representation from the seller which states that the seller has enough cash on hand to pay the difference between the proceeds of sale and the payoff.

This answer is being provided for general educational purposes only and does not constitute legal advice. No attorney-client relationship has been established. This answer should not be used as a substitute for competent legal advice from a licensed professional attorney in your state

Christopher S. Tretola, Esq.

Spadaccini Main, LLC

98 Franklin Corner Road

Lawrenceville, New Jersey 08648

ctretola@smlawllc.com

tel: (609) 912-0100 x 21

fax: (609) 912-0400

You are very knowledgeable and this is a very informative post!

I am an active reader of Active Rain. And short sales and Foreclosures get my attention due to the current market requirement. Not that I do not read other posts. There are some very valuable ones.

I learned a lot from your post today. Thank you for a valuable info. Even though I have only done two short sales (Listings). Like every one’s experience mine with Country wide took almost 4 months and Other went well

My question here is regarding constant daily emails we get from different institutions offering short sale, foreclosure class over the net. Every one claiming we will become experts. How to find out if they are worth the fee they ask? Any suggestions

Thanks for all of the valuable information Katerina! Please HURRY and finish your book. It's really needed right now. I know the rules seem to change daily, but the basic guidelines remain the same. You're right on the money when you remind posters that "real estate is local" and that all laws do not apply in every state. Thanks for the great post(s).

Happy Birthday Nestor!

Ronda Densford, REALTOR
Jacksonville Florida area

magnoliarealtor@bellsouth.net

Ruth Canutt wrote: What do you think of the CDPE ["Certified Distressed Property Expert"] program and designation?

It's bogus. Exactly who or what is this certifying organization? Well, the "founders" of the "Distressed Property Institute" collect a fee ($89) for "certifying" an agent, which they value at several hundred dollars, yet they're not endorsed or approved by any state licensing agency or local real estate board.

http://www.distressedpropertyinstitute.com/about.htm

They have a nice website and that's about all.

No one is addressing the elephant in the room: you can't get a short sale approved without a bona fide contract in the SS package!

Thanks for the great post. It is easy to forget that they way we conduct our transactions if different from region to region. Our business is shaped by local custom, laws and lender rules. When you are talking about short sales, you are mostly talking about lender rules. Lenders are winging it right now and it is next to impossible to predict their behavior. I would be very careful about any statements I made to consumers.

Rick Wellington

Katerina - Is your book strictly about Florida short sales? Will there be enough general info that agents from other states can use it effectively?

When will the asset managers ever learn? The only asset manager that I know of that has a whistle blower line for complaints against REO listing brokers is FHLMC. Do you know of any others? Realtors® should continue to fight the battle and inform the public about using the right agent to represent you in a short/REO transaction. The E&O carriers are also beginning to take note. It's going to take some time, but the certified loss mitigation and distressed property specialists will prevail!

Thanks for the thorough overview. It's hard to call yourself an expert in an area of the market where there is so much unpredictability whether you are representing buyers or sellers. In Hawaii, Act 137 passed last June, and that precluded realtors from speaking with the lenders or giving any counsel to the sellers. Kind of ties our hands when it comes to helping sellers. Hopefully, the legislation is about to pass by July that will exclude realtors from that Act 137 and we can add our expertise to the benefit of our distressed sellers.

I am one of those agents who avoids short sales. I am becoming more open to them as I see the banks becoming more open to them.

Weichert Realtors wrote: It's going to take some time, but the certified loss mitigation and distressed property specialists will prevail!

Uh, who's doing the "certifying?" Why do you feel the authors of this website are qualified to certify anyone for anything?

http://www.distressedpropertyinstitute.com/about.htm

Does paying $89 and possibly taking an online test qualify you as an "expert" in short sales? Why? How? From the website:

The Certified Distressed Property Expert Designation is the course that provides agent with everything they need to assist these homeowners. The course is delivered in easy to understand modules that will give the future CDPE agent everything they need to understand and assist with the needs of distressed homeowners.

Big deal. Give me in-the-trenches experience backed by bona fide licensing by a state authorized agency. CDPE = delusions of grandeur.

Thank you for attacking this subject head-on and making agents aware of the different "rules" in different states. This helps everyone, whether listing a short sale or representing a buyer.

I certainly agree with the points you suggest in your article. I obtained over 300 short sale approval letters last year--all for deals in the state of California. So, I guess that I would consider myself experienced. Yet, the irony is that each and every day I confront new and changing situations that require different solutions and tactics that we have not used before.

Gina Finsilver wrote: I can highly recommend the CDPE (Certified Distressed Property Expert) two day, 11 credit course through your local Board. I took the course along with 100+ others some of whom flew in from different states.

What bugs me about this is that someone (the so called Distressed Property Institute) decided unilaterally to become the certifying authority for the real estate industry, set up shop on the internet, markets for gullible realtors and charges for a "course" on short sales. Here we have pure marketing fluff (otherwise known as BS).

Kelly Marsh Earns Prestigious Designation To Help Homeowners In Danger Of Foreclosure

http://tinyurl.com/cuc6yu

Those of you who EARNED your expertise through the hard work of trial-and-error should be incensed that these yahoos are obtaining a "prestigious designation" for a few bucks and warming a seat in a classroom for a couple of days.

Just because you call yourself an expert doesn't mean you are one.

BTW, the National Association of Realtors does NOT offer/endorse/sponsor the so called designation of Certified Distressed Property Expert.

http://www.realtor.org/education

This "designation" exists only in the minds of whoever designed the website, Distressed Property Institute, and now markets it nationally. Heck, any one of us could've dreamed up this designation and taken our dog 'n pony show on the road. Sheesh.

Notice that no individual or recognized organization is bio'd on the website at the About Us page. Hmmm...

Beginning today, I "earned" the "prestigious designation" of "Certified Short Saleologist." Ahhh...that feels so important! Think I'll design myself a little "seal" to put on my business cards.

OK, I'm done now. :-)

Great article, particularly where you talk about people who claim to be short sale experts after doing a handful. Like you, I have been doing them since 1992 when I was in California and the market did its last large downturn. To teach other Realtors about short sales, I have a blog at http://www.ShortSalesR.us (you can also get there by www.CreateAShortSale.com which is easier to remember) So, if you know agents who want to get more information, or get questions answered, this site is a public service. If agents read the posts, they will know how to do a short sale in detail and it will cost them nothing.

Congratulations on your book. My book, Create A Short Sale is being reviewed by the North Carolina Real Estate Commission as a part of a class that will give North Carolina agents continuing education credit while they learn this important talent. Realtors need to do short sales as a form of social responsibility: Short Sales are better for the seller (for better credit results, and the family does not get evicted), better for the buyer (the home is maintained instead of an "as is" REO), better for the neighborhood (no vacant posted foreclosed homes selling at a lower price) and better for the bank (they get on average 30% more from a short sale compared to a foreclosure). The more Realtors we educate to properly do short sales, the quicker we get distressed homes out of the way, and the sooner we get an economic recovery.

Your point about regional differences is important. In California there is one set of rules, including no further liability by the borrower on most of the foreclosed loans. In North Carolina, there is another set of rules. For example, in North Carolina the Realtors have to be careful in what they do after a foreclosure proceeding has been filed, because the foreclosure is a court proceeding and certain actions could be considered the unauthorized practice of law.

Thank you for your article and thank you for your efforts to educate Realtors in this important field. Let me know if I can do anything to help your educational efforts.

Your points are good. We've worked on many short sales both for the Buyer and Seller and found that the ease of the sale is very much bank dependant number 1 and number 2 the skill set of the people you have the luck to have drawn. We're experiencing a new wrinkle in this gave of short sales. When PMI is part of the equation, that entity is asking for reimbursement. When our client's had no funds at all because they were both laid off and seven weeks later were still not drawing unemployment, they are on the verge of losing their apartment. The PMI entity did not care and ordered the bank to perform a foreclosure. (We were not able to break the code to speak with this entity directly) Other than the lower interest rates we have not seen the stimulus package help the people that really need help. It's sad.

Tom and Julie Harris wrote: (Remember, a SS does have the virtually the same credit ramifications as a foreclosure)

Near term, a short sale (reflected as "settled for less than owed" on a credit report) does have nearly the same credit score ramifications as a foreclosure (resulting in Score Factor Code #22--"serious delinquency, derogatory public record or collection") with respect to one's FICO score.

However, for future credit qualifying purposes, notwithstanding the FICO score, a short sale is far superior. This is because Fannie Mae and Freddie Mac recently reduced the credit seasoning penalty for short sale to two years vs. five years for foreclosure. You MUST print this announcement, put it in your SS presentation package and give a copy to your seller. Otherwise, you're speculating about the full consequences of SS vs. FC and may be guilty of malpractice.

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

The seller may not want to reduce his 401(k) of thousands of dollars just to stay out of the credit doghouse for only two years. This is not to say that lenders cannot and will not impose more stringent credit "overlays." They can and do, but for Agency (Fannie/Freddie) financing, "time out" is two years and you're back in the homebuying game. (Jumbo loans aren't governed by Fannie/Freddie guidelines.)

This is a bunch of Blarney! You all make my sick! Like tits on a Boar Hog. All real Esate agents get into Real Esate because they have FAILED at everything else. Get a real life. Quit sucking the money and life out of everyone else.

My sentiments exactly! Just because a seller CAN do a short sale does not necessarily make it the BEST decision for them. I advise all my sellers to talk to an attorney. Twice in the past few months I was going to list a short sale, advised the seller to talk to an attorney and both times the attorney advised NOT to do a short sale.

Each situation is unique. The CONSEQUENCES of a short sale may not be in the seller's best interests. For instance, (I'm in NV) I had a possible short sale seller who had re-fi'd his primary. The refi changed the loan from non-recourse to recourse. My seller could not prove 'insolvent' and would have owed $60K in taxes. As I suspected, he would not have qualified for the Mortgage Debt Tax Relief, despite it being his primary residence. He was shocked to hear that because everyone was just telling him to 'walk away, nothing will happen'. I made him see an attorney and sure enough, his attorney confirmed my suspicions. Now how many realtors would have just listed the short sale??? This particular seller's only way 'out' is Ch 113 bankruptcy. I suppose I could have just listed & sold the short sale and collected my 3K commission. But then next year I'm sure I would have gotten an angry phone call when he opened up his $60K 1099C tax bill! No thanks. He is very grateful that I pushed him to see an attorney.

The sheer number of short sale listings in our NV market is staggering. Sure, ANYONE can do a short sale...it's the CONSEQUENCES that people seem uneducated about. And it's hard to properly educate realtors and sellers when each circumstance is different. There are just too many variables involved.

With so many other properties on the market why subject your buyer to a short sale situation? Let the banks choke on them.

I like the post too, and there is not much that I can add to the comments except to point out that there is a liability exposure there for those "experts" because it is so misleading to tell someone that because you did short sales back in the 80-90's then you were ahead of the others. Every day we find new rules, and nothing has been before what it is today. Every single transaction is different. In my book, we are not experts on anything while we are learning, and we all are, and will be simply because of the nature of short sales and their lenders different rules and the sellers different situations. Thanks for opening the eyes to such a controversial topic, we needed to talk about this... today!

Antonio

Rachel Alexander wrote: This particular seller's only way 'out' is Ch 13 bankruptcy.

I hope you didn't send him to a bankruptcy attorney for advice. :-)

Short sales in the South Orange County, Ca. still do not have a very good close rate. It is a combination of the lack of the Listing Agent's commitment, List price being way below market value, and the Lenders still not willing to negotiate especially if there is a 1st and 2nd. I must admit that more are closing now compared to last year. I agree with Rachel.. in this area the number of short sales is also staggering. Many more short sales right now than regular sales and REOs combined.

Inventory is down right now. There are multiple offers on short sales, REOs, and the trend is moving to multiple offers on good priced regular sales.

The definition of a short sale is very simple. I've been noticing more and more that many short sales are listed at prices that have not yet been approved by the seller's lender. This is causing much fuss from potential buyers; people think or are "disillusioned" into believing that asking prices can be negotiated. When it comes to short-sales and REO's it seems that the winning offer is almost always higher than the asking price.

Wordless Wednesday comment:.

Your a Featured Post

Great comments from everyone. Thanks for all this information, it will sure help me in my short sales.

While your article is right on target with the idea of the way a Short Sale should be handled and negotiated it fails to address the real problem that most Short Sale listings are priced far below the market value for the area. In fact most are priced far below the foreclosure homes many of which have been brutalized.

Couple that with Buyers who find these homes on the internet and think that they can actually buy them at these ridiculously low prices and you have a problem. As soon as you show the Buyer the comps and start the discussion of what a realistic offer might be and you lose them. Listing Agent should never list a home at a price that will just attract offers. It makes for bad business on both sides of the transaction.

What a great post. One or two short sales does not an expert make.

Wow Katerina, They sure came out of the wood work for this one!! Quite a few spammers you have here. Good job!!!

Wow...a short sale taking two weeks to close nowadays would be a "pinch me I must be dreaming" scenario!! I know some agents who won't even show a shortsale b/c of the uncertainty of closing!!

Bryant- Yep, the spammers and the salemen for designations seem to swarm to my posts about short sale, don't they! They think that if they spam their wares here they may have a captive audience. What they don't understand is:

1. It is a HUGE turn off to all the readers and authors

2. They are falling on deaf ears and blind eyes, because people here don't respond to spam.

3. It is against Active Rain community guidelines to spam a post or add your sales links in it.

4. Their true colors shine through- RUDE!

Dear Catherine Coy,

I appreciate your view on the distressed property designations, however, you may have missed MY point. It's not the alphabet letters that you can add to the end of your name, but the education and information that you can obtain. Short sales take a team comprised of an attorney, a lender and a knowledgable real estate agent. A little information can be dangerous and ethically wrong when you are representing a seller. I am glad that I have only worked with buyers thus far on short sales and have been successful, but mostly patient and persistent. I do believe that I am now armed with a clear-er understanding of the process so that I can assist sellers chose the right direction when at a cross road.

Not all distressed property designations are created equal. Perhaps you should attend one. I've been in the trenches for 22 years so I can differeniate between a 'fad' and the 'future'. In this market we could all use some new ideas, a bit of dusting off and back to basic customer service.

Best regards, Gina Finsilver, Lang Realty, Boca Raton, Florida

Gina- Please go write your own post with your testimonial about your certification. This is a post I wrote about what a short sale is and what agents need to be careful about when posting to the public.

You are not on topic here. Please adjust your comment accordingly. Thank you. Katerina

Gina- Your last comment is fine. That is adding to the conversation. Thank you.

Barry Bridges- Because I don't work with buyers. I am a listing agent and I list short sales. I need good buyers agents in our community to show our listings and bring us offers. I don't want the bank to choke on them. My job is to help a seller avoid foreclosure through selling property as a short sale.

In South Florida, you would be totally broke if you never showed a short sale to a buyer.

APR

Great post and I can only hope a reminder that you can't be all things to everybody. A few days ago there were posts about short sales in the newsletter and I would say I disagreed with alot that was said. They also should have had a disclaimer that mentions what state they are in. There was one person who said the bank won't come after you for a deficiency? Really? How did they determine that? Figures from where? Your opinion about how many short sales?

Dave Lindahl- If you are a member of AR then please read the community guidelines. My blog is not an advertising portal. Either way, member or not, please adjust your comment to add to the conversation but lose the spam. Thanks

In our area, Southwest Montana, we've not experienced the volume of foreclosures and short sales as in other parts of the country. However, I am amazed at how awkward the process for doing a short sale has become!

First, lenders are instructing Realtors to do things that typically fly in the face of our established business practices. Violation of MLS rules and the NAR Code of Ethics are common results of doing business per lender requirements. On one occasion, I submitted a full price cash offer with NO contingencies on a foreclosed property, a REO owned by the lender. The listing agent, acting on instructions from the lender, held the offer while other offers came in. She then submitted only ONE of FOUR offers to the lender. The lender never saw my offer. They closed the transaction for less money, with a financing and inspection contingency in the offer. Now, they're free to accept any offer they'd like even if it's lower. But the agent had a responsibility ethically to either submit all offers or provide me with a written instruction from the seller not to submit more than one offer at a time. Similar stories about lenders refusing to use any Realtor forms in transactions also exposes agents to lapsed errors and omissions coverage. E&O folks love to ask: "Did you use a Realtor approved form in the transaction?" If not, ouch!

Agents need to negotiate with their lender clients to have them enlist at some reasonable level in to our established business practices. Right now, the tail is wagging the dog. That will stop when strong agents show their lender clients there"s a better way. I speak from some experience having worked closely with the Resolution Trust Corporation during the S&L crisis. Same deal.

Thank you for writing a clear and concise post about Short Sales. It truly is a very

specialized niche with which the average Real Estate Agent is not FULLY familiar.

Thank you for the cautionary remarks for all to consider.

MAY

Great information! Many people don't have what it takes to work the short sale niche....I don't. Kudos to doing a great job helping all those families in need!

WOW, I just checked in to see over 125 comments. There is no way that I will be able to get back to everyone. I have also been bombarded with phone calls from agents who read this post. I am trying to get to all the comments that contain questions.

MAY

I love your post! We started doing classes in short sale negotiating over 1.5 years ago (yes, we are truly experienced) and I'm shocked by all the new short sale "experts" with 2 deals under their belts. Misinformation certainly abounds. If you are not already aware, there is a free, cooperative website www.RealEstateRoadkill.com that posts only short sale offers that have written lender acceptances but have lost the buyer.

Hi, I'm very interested to read your post about "The extent to which it will be approved will depend upon the real estate agents' ability to negotiate".

MAY

I can't wait for your book. Your state is similar to AZ. However what i have noticed is that EVERY lender is different on what they do or need, I have not seen a preapproved short sale without an offer however sometiems the buyer walks away after the short sale has been approved. at that point an agent would now what price the bank will take.

JUN

Great information! Thank you for sharing your knowledge!

JUL

Katerina: Watch out for the comment #132 above me. It is a spam comment. I have seen perhaps ten of them tonight. Also... I suggest you NOT click on the link... since it is spam... and may lead to some virus or trojan horse. I suggest you DELETE the above comment. Take care...

SEP

Katerina: This spam idiot is after again. Number 134 is another one. I thought Active Rain got rid of these dummies ? Oh well. I guess all we can do is continue to report them, and then delete them... which I do. Take care...

Karen- Thanks, they are still getting in. Not as much, but those spammers always find a way. The only way to kick them out is to have no follow links in all of AR and that would mean no Google Juice:( I will never understand who falls for their crap.

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