Short sales are like a box of chocolates...

 

In the past I've written several blog posts here on Active Rain about short sales.  And I'll still stand by my proclamation that NO ONE is a short sale "expert".  How can anyone be an expert on a topic or in a field that is constantly shifting, where the rules are constantly changing, and where each situation/transaction is different from the last.

A heart surgeon can become an expert because every human heart is the same.  He knows what he is going to find when he opens up the chest cavity.  Not so when a real estate agent starts to peel back the layers of a short sale listing.  And please, don't assume that I am equating a heart surgeon with a real estate agent.  We all know a real estate agent's job is so much tougher these days. Just kidding.

Yes, there are certain elements of every short sale that are the same.  The most elemental of these things is that the seller is selling the home "short" of what they owe on the property.  The basic short sale package is the same:

Purchase offer;

Listing Agreement;

Hardship letter from sellers;

Financial worksheet;

Two years of tax returns;

Pay stubs;

Bank statements;

And comparables of similar sold properties over the past six months.

But after that, nothing is the same.

Even if a short sale is with a bank your agent had success with in the past, don't count on them having the same success this time out.

Even if both loans on the house (assuming the sellers have a first and second mortgage) are with the same bank, don't assume it will be easy to get approval on both loans.  You would think so, considering the net proceeds are going in the same bucket when all is said and done.  But you'd think wrong.

Oh, and be sure there are no mechanics liens, or other strange things that may show up on title.  Have your title rep run a new title report every few weeks just to make sure nothing pops up in the eleventh hour to foil all of your efforts.

You see, there is no rhyme or reason a lot of times to short sales.

Yes, you do need an experienced short sale agent.  Because without one, you're chances of success are even further diminished.  But don't believe ANY agent that tells you they have a 95% success rate on short sales.  It is entirely untrue.  If there were truly as many agents having 95% success rates with their short sales the real estate market would be in a lot better shape than it is right now.

To paraphrase an oft quoted film character of the past, "short sales are like a box of chocolates, you just never know what you're going to get."

And remember, if someone claims they are a short sale "expert" RUN FORREST RUN!