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Weekly Short Sale News - Certain Short Sales Should Be Avoided

By
Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

short sale newsEach and every week, there are things going on that impact the short sale business. Sometimes there are big changes to federal and state policies that impact short sale processing and the distressed property world. Other weeks, there is news about government programs for distressed borrowers.

Read below to learn about some of the interesting stuff that went on this week in the distressed property arena:

Short Sales and the Credit Report I love Ken Harney of the Washington Post. (How could I not when he has interviewed me before?) In this article he discusses a HUGE problem: when short sales are reported like foreclosures on the credit report. This is one good reason to always keep an eye on those FICO scores.

Short Sales and Valuation Issues As discussed in this MarketWatch article, this issue of value plagues short sale negotiators. It’s always a challenge when the bank says that the property is worth 100k more than the offer amount!

Short Sale with 4 Liens This article discusses how to manage short sales with multiple non-institutional liens and brings up the important question, “Should we bite off more than we can chew?”

There’s lots going on in the distressed property arena. And, if you are actively working with ‘distressed’ borrowers, it’s important to keep up with all of the changes in the industry. Sometimes that’s hard, which is why we’ve provided you with a weekly recap right here.

Comments(4)

Dena Smith
DSmith Realtors - Irving, TX

Short Sales have become a specality or certainly should be treated that way. It is a detriment to everyone in the transaction when an agent lists a short sale without any short sale experience or the ability to have another agent mentor in this area. Add to that a buyers agent without short sale knowledge = disaster.

May 25, 2013 12:41 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Melissa,  The changes are never-ending. It's a full-time job just keeping up with the changes. Those of us who work short sales know what it takes! Your doing an amazing job. I highly respect you as a short sale specialist and real estate professional. Wishing you a wonderful Memorial weekend.

May 25, 2013 01:35 AM
Melinda (Mel) Peterson
Grants Pass, OR - Bend, OR
The Savvy Broker - ABR, CRS

Nice post Melissa!  Short Sale Agents need nerves of steel to stay the course in any Short Sale transaction... there are so many twists and turns and an occasional one-two punch.  I received one of those yesterday when a negotiator raised the value of my listing by $30K (when I had an approval with the same bank 3 months ago for $30K less).  The bank value represents a 22% increase in less than 3 months time... which is ludicrous!  I asked for justification and he said 'the investors' made the decision.  Hooey... I'm appealing!

May 25, 2013 03:47 AM
Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

Melissa:

Great post and love the picture. ha. Hope you have a wonderful weekend. 

May 25, 2013 05:19 AM