A tid-bit on Short Sales...

This is a portion of a response to a Short Sale question sent into the Washington Association of Realtors Legal Hotline sent out in a weekly update I get called "Friday Facts".

It offers another oft overlooked perspective on the importance regarding pricing/buying Short Sales at, or as close as possible to, market value.

"When a short sale lender agrees to take back less money than it loaned, it does so, in part, based on an affidavit from the seller that the buyer's offer represents the highest price for which the property can be sold. If that is not a true statement the seller cannot truthfully sign that affidavit. When an artificially low price is designed to induce the lender to lose even more money, that is called "loan fraud"."

This is yet another crucial reminder to step wisely around either selling or buying Short Sale properties.

Live good. Be happy. Be wise. Be safe.

-Mimi

Mimi Osterdahl / The Muljat Group Realtors / Bellingham, Washington / www.LiveGoodBeHappy.com

2008 President, Northwest Washington Women's Council of Realtors

 
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6 Comments on A tid-bit on Short Sales...

also the price will be overridden based on the length of the closing date.  The shorter the closing date time is usually the one that wins out (I learned from example.....)

 

Frank

05/16/2008 08:56 PM by Frank Bailey (Prudential Classic Realty)

Mimi, too many agents don't understand this. If the lender doesn't know about any part of the deal which changes the true picture, it could be construed as loan fraud. Scary term isn't it?

05/16/2008 09:16 PM by Maple Valley WA Broker/Owner Colleen Fischesser 425-432-5400 (RE/MAX Select Real Estate)

Good information Mimi. There are lots of ways to get in trouble while trying to make a buck. One needs to tread carefully.

05/16/2008 10:37 PM by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection)

Mimi- Good information to have. Short sales are something I want to learn more about. The problem is that everytime I learn more about them the more scared I get to get involved! =)

Best,

Scott

05/18/2008 05:02 PM by Scott Cowan -Tacoma & Pierce County Area (Terry Wise & Associates)

Scott-

Don't be scared...just be aware.  Same goes for Distressed Properties.  Learn, learn, learn and then you will be just fine.

Go get 'em!

Live good. Be happy.

-Mimi

06/20/2008 01:52 PM by Mimi Osterdahl, Bellingham Washington Realtor (The Muljat Group, Bellingham Washington)

Good to know.  I get a ton of realtors coming to me to ask about how to put together short sales, and I didn't know this (and I'm THEIR expert?).  Scott's right - scary stuff...

Glenn

06/20/2008 06:16 PM by GLENN LEACH (THE LEGACY GROUP)

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Real Estate Agent: Mimi Osterdahl, Bellingham Washington Realtor (The Muljat Group, Bellingham Washington)
Mimi Osterdahl, Bellingham Washington Realtor
Bellingham, WA
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The Muljat Group, Bellingham Washington

Office Phone: (360) 650-5479
Cell Phone: (360) 220-6787
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Live Good. Be Happy. ..."A Fresh Approach To Real Estate." "Go into the world and do well. But, more importantly, go into the world and do GOOD." -Minor Myers Jr.

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