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A tid-bit on Short Sales...

By
Managing Real Estate Broker with eXp Realty

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

Posted by

Mimi Osterdahl / Real Living NW Realtors / Bellingham

 

Mimi Osterdahl, eXp Realty

Managing Broker/Owner, CRS, GRI, Certified Real Estate Instructor State of Washington

2014 President Whatcom County Association of REALTORS®

Founding President Northwest Washington Women's Council of REALTORS®

 

 

Comments (6)

Frank Bailey Sr.
Keller Williams Realty - Schertz, TX
Your retired Veteran, your Full-Time REALTOR

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

May 16, 2008 01:56 PM
Colleen Fischesser Northwest Property Shop
NextHome Experience - Chelan, WA
A Tradition of Trust in the Pacific NW since 1990!

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?

May 16, 2008 02:16 PM
Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

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

May 16, 2008 03:37 PM
Scott Cowan
RE/MAX Professionals - Olympia, WA

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

May 18, 2008 10:02 AM
Mimi Osterdahl, NW Living
eXp Realty - Bellingham, WA
"Do good work for good people."

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

Jun 20, 2008 06:52 AM
GLENN LEACH
Mortgage - Puyallup, WA

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

Jun 20, 2008 11:16 AM