Special offer

Short Sale how, what, and why...

By
Real Estate Agent with Crye-Leike Realtors

We're all getting more and more information on short sales.  For the public the media is talking about it, for realtors we are being slammed with companies that want to give us the "secret" to getting short sales done and money in your pocket! {said in my best used car salesman tone}

The truth is, we have simple steps to protect both buyer and seller, that the industry hasn't yet caught up to.  I know that in Arkansas we are going to see two new documents at the beginning of the year provided by our realtors association that will address these concerns.

The first problem is obviously time.  We have to make sure that there buyer and seller agree that the inspection period, application for financing, application for insurance, and any other time related intricacies are to start upon the banks acceptance of the offer.  Too many of us are leaving this undone, and no one knows when to do what.  

Second, the buyer needs assurance that if they find another home during the banks review process they can at any time be reimbursed their earnest money and move forward on a different home.  Once the bank has accepted the terms the property is to move forward towards closing and lack of financing, bad home inspection, or other contingencies are the only reason to back out.

Third, is an understanding that the agreement is between the buyer and seller.  No where in the Arkansas agreement does the contract give us a right to represent the bank.  If the buyer and seller both understand this they will see us more on their side.  This is a very long and stressful process for a buyer.  They need to know with confidence that we are their advocate.

Fourth is value.  Fanny and Freddy are going to approve "any reasonable offer", but FHA, VA, and RD are going to require about an 88% net of market value to approve the deal.  You can save yourself a lot of time on under priced properties if you know this number.  Ridiculously underpriced property means it won't be approved...even with a full price offer.  That frustrates buyers beyond belief.  Save yourself the time. 

Last is the process.  Make sure every document you send in has the loan number and seller's name if you represent the seller.  Call and speak to someone twice a day.  Be nice.  The apologetic squeaky wheel gets the grease.  Don't gripe.  The loss mitigation department of every bank is completely over worked right now.  They need you to be nice.  All you can do after that is wait.  

Gang, that's the process.  If you think spending $500 on a course will help you, then please make the check out to me!  :)

I hope this helps sellers and realtors alike.  It's a hard way to get a good deal, but it's still a good deal, and it's still a good paycheck for us!  Everyone wins in this process if we can see it through.

Happy selling, happy buying,

 

Jason Smith

Executive Broker

Crye-Leike, Realtors

Fayetteville, AR

Comments (1)

Shannon Coe
exp realty of California, Inc. - Oceanside, CA
760-586-5268, San Diego Realtor

good points! we need to simplify!

Shannon Coe Realtor #01489731

WR Properties Brentwood CA

http://www.ShannonCoe.com

Nov 22, 2010 02:58 AM