Short Sales | Price may be Insufficient to Cover liens and Encumbrances

By
Real Estate Agent

I am seeing a lot of this lately.  I am showing property this week and some of the homes have these remarks in the listing.

While it is in my best interest to contact an attorney on this matter, I was wondering if any agents have had experience with closing a deal like this.

What impact does it have on the buyer.  If the original seller has title insurance, isn't the new buyer protected.

I am somewhat confused as to how best represent my buyer and protect them from hidden costs.

If someone out there has ideas, please post a comment.

 

 

 

Comments (2)

Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

Did you listen to the NAR webinar's about Short Sales?  I'll be back with the links. 

Those webinars along with a class or two I have taken have helped me to feel comfortable showing short sales here.  Between the listing agent negotiating away some of the seller's debts, the buyers attorney looking out for their interest that there are no unreleased liens  and the title insurance you can be sure IF you get to closing that your buyer is protected.  Or I hope...

I'd also  suggest reading Steve Shatsky (TX), Sally Hanson  (of Sally and David Hanson in Wisconsin) and some of the other Short Sale experts posts...  on ActiveRain.

Also a mantra as you are showing the short sale of "please, please, please let there be a better home for this buyer that is not subject to lenders approval" might help too. 

Are listing agents putting "Price may be Insufficient to Cover liens and Encumbrances" in the mls to notify buyers and other agents that the list price may be lower than the encumbrances to protect themselves?  To try to stimulate multiple offers?  I am not sure I have seen that language in our mls.


Jul 07, 2009 04:39 AM
Roby Robertson
Mooresville, NC

Thanks Maureen.  I am seeing the lanuage "Price may be Insufficient to Cover liens and Encumbrances"  quite a bit in our MLS.  I am just trying to do my homework and be prepared.  We are seeing homes that are not short sales, however many buyers not believe these are the best deals.  Properties being sold as-is, in my estimation, are not always the best deals.

Anyway, thanks for the comments.  I really appreciate them.

 

Jul 07, 2009 06:34 AM