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What would you do to get a short sale?

Can you help? I have a listing that I have some issues with. My clients are getting divorce and after 90-days on the market I had the property sold.

However the buyers discovered some issues with the windows after a home inspection. It seems that the windows were installed in-correctly and will cost over $4,000 to replace.

So we lost the deal since my clients are un-willing to make the repairs. I've also discovered that my clients are 5-months behind in their mortgage.

I suggested to my clients that they should conceder asking the lender (or give me permission to) doing possible a short sale. They both now live out of state and it is very hard to communicate with the two. I only want to help them move on. After all a short sale in my opinion is easier to over come credit wise then a foreclosure...

What would you do?

Posted by Shayne Stone on 04/28/2008 05:34 PM

Comments (6)

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6 Comments on What would you do to get a short sale?

APR

2008

I guess I would start by asking them if and when they plan on purchasing another home down the line. And then explain what kind of impact a foreclosure would have on their credit rating as opposed to a short sale. It sounds like they have alot of hurt feelings between themselves and this is probably one of the last things they want to think or talk about, so just try to make them feel good about making this one good decesion together.

APR

2008

Shayne

They ARE in foreclosure. Has the NOD been filed? Date for Trustees sale? Have they talked with their lender? How much to their owe? Their equity (and credit rating) is going to evaporate if they don't sell.

If they just "forgot " to tell you that they were behind in their mortgage payments, what else did they "forget" to tell you. I think you need to re-evaluate these people. Can you trust them?

Thanks all for your comments!

First,I do have the lenders information. However I am still waiting on permission from both my clients - in order to contact the lender.

I am just trying to somewhat help them save there credit, after all a short sale credit history to me is better then a foreclosurer. And since they have no equity, or money to bring at closing and I now know of the damage in th ehouse. It will be better if we do a short sale...

Shayne,

You need to get written permission from the sellers to talk with the bank. When you get it fax it to loss mitigation or loss prevention at the mortgage company. At the same time you need to fax them a listing history on the property, a current CMA, and several appraisers in the area that can get to the house quickly to give the bank an unbiased third opinion. At this time your request a short sale package to be sent to you. You then forward the package to your sellers and have them fill it out and return it to you. You forward it to the bank and get them to accept the short sale. When they accept it you adjust the list price accordingly. You must be the interface with the bank because the bank is unwilling to work with the sellers but they will work with you as a third party operating on the sellers behalf.

Just when you think it is time to grab a cold glass of lemonade (or a Shiner Bock) you will find out that short sales can take years off your life and can potentially alienate clients. In my experience, bank' take their time in responding to short sale offers even after they have agreed to them. It is a perplexing situation not at all like when you are selling a home that is an REO.

I have recently completed three of these and I'm tired of them in a big way. I started out thinking I could help people but it has not turned out that way.

Good Luck,

Tim

Is it worth your time and energy to try and force someone to do a short sale? I would think you may have something better to do.

APR

2008

Hi there my former Bay Street buddy!!

They have only 2 choices at this point - short sale or foreclosure. I wonder if that was the reason they wouldn't negotiate with the buyers regarding the windows. It is a shame when home owners are in trouble and they are too proud or embarassed to say the problem. Unfortunately you made be out of time for a short sale. Get written permission from the seller to speak with their bank and hear what the bank has to say.

Best of luck!!

Bobbie

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