Do you really understand short sales?

Services for Real Estate Pros with United Credit a division of FES

It seems the real estate market has once again changed focus.  Most properties on the market today are listed as a short sale.  What has caused the change? I believe a couple of things occurred which redirected the market.  The first was the moratorium on foreclosures.  In an effort to slow the "free fall" of prices due to an unprecedented number of properties being foreclosed the government place a foreclosure moratorium on banks that received "bail-out" money.  Second, the Treasury Department has set aside funds for the Making Homes Affordable program whereby the same banks who had the moratoriums are now asked to modify the mortgage loan for qualified home owners.  The key is "qualified" as not all do or will qualify as you must have an income in order to get a modification yet have no additional funds available and going in the hole by trying to continue to pay the mortgage. Every month they find they are "robbing Peter to pay Paul".  I have met homeowners who tell me the banks have told them to stop making their mortgage payment in order to apply for a modification. 

When a owner becomes unemployed, has a job transfer or they are just looking to move from one area to another they must consider their options.   One option would be to sell the home, however they may find their home is "under water" or "up-side-down".  If you are facing a situation like this you may have found you owe more for the house than today's market value. Now the question you should be asking yourself is how will I know if the agent I hire will be one that knows the ins and outs of a short sale process.  So the first thing you need to do is to understand the short sale process as a seller.  Do some Internet research? You may not find a lot of information that as a homeowner that will be helpful - in fact you may be totally confused by the time you finish.  Don't feel bad many agents are the same way.  Not only are the agents, but the bank personnel does not always know how to expedite the transaction.  Why because so much of it is new to the agent and the banks have been so overwhelmed by the volume that most of their staff are under trained or they are severely understaffed.

Stay next blog I will go into some of the steps that will help expedite your transaction and update you on some new guidelines that are coming out.

Comments (2)

Dr. Stacey-Ann Baugh
Century 21 New Millennium - Upper Marlboro, MD
A doctor who makes house calls.

I am looking forward to the next installment.  I find short sales very difficult to deal with.

Oct 15, 2009 12:10 PM
Joseph Seidel
American Mortgage Specialist Inc. - Scottsdale, AZ

Joseph Seidel    

Business Development Manager/Partner Relations

16100 N. Greenway Hayden Loop, Suite 108, Scottsdale, AZ 85260                                                                                    

Office: 480-315-3228       Fax: 866-491-3280    


Dear Real Estate Agent,

I wanted to touch base with you and first introduce myself to you.  I am a former Branch Manager for Bank of America for 5 years and worked as a short sale negotiator for 1 year with the company as well.  My short sale experience has allowed me to build a strong relationship with Realtors throughout the Valley.  My long-term relationships developed with other short sale negotiators are unparallel.  Knowing exactly what a bank needs is the key to a short sale closing in 30 days compare to 90 plus days.  There is still time to get that short sale through for your borrower to receive the $8,000 tax credit!   


My current employer American Mortgage Specialists, Inc is a direct lender, with full service team including Processing, Underwriting, Doc Draw and Funders in one location.  This allows us closing with in 20 days even with the new HERA guidelines in place.  We specialize in Purchase's and offer products such as 620 and below financing, 102% financing, As well as the 203K loan, etc, more than 40 programs to fit any criteria.


I would also like to offer to you a selection, of no cost to you services my office offers to increase your listings and sales by 100%.  I would like to setup a time to present these offers to you.  Please contact me to setup a time that is convenient for you.  

Best Regards,

Joseph Seidel

Licensed in Arizona - BK 905487, California - 603-9549, Florida - ML 0701238, Idaho - MBL-4889, Michigan - FL 0012943, Nevada - 1797, New Mexico - 2001, Oregon - ML-3751, Tennessee - 2691, Washington - 510-MB-28432


Oct 15, 2009 12:43 PM