Ask The Broker. Short Sale Questions of the Week.

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

Tutas Towne Realty, Inc

Broker Bryant,

I put an offer in for a condo that is for sale 3 doors down from one that I own (a Short Sale).

My questions are:
  • How do I know whether or not my offer is accepted by the bank?
  • When I call Chase they won't give me any information. What can I do?
  • I offered them 45% less than what the Seller paid in 2005. Will this be accepted? 
  • How do I know all of the past due taxes and HOA fees are being paid before I buy the property?
  • Is there some sort of Code of Ethics that the Realtors handling short sales are supposed to follow to allow open communication between buyer, seller, and bank?


Once the seller accepted your offer (assuming they signed it) you have a valid contract to purchase the unit. All the lender is being asked to do is accept the short payoff and remove the lien so the transaction can close.

Chase, in my experience, is very slow with making this decision. And they will not be able to give you any information since you are not on the loan or the authorized party who is handling the short sale negotiations.

The previous purchase price of the property and the amount of the existing mortgage really have no baring on anything. The short sale decision will be based on the Fair Market Value (FMV) of the property now and whether or not your agreed purchase price is near FMV .

You can hire a Title Company to run a lien search on the property. They may charge you a couple hundred to do this but it would answer most of your questions. Of course I don't think knowing what liens are on the property is really going to make much difference for you. It is what it is and they will all have to be cleared our before the transaction can close.

Unfortunately, as the buyer, you are pretty much at their mercy when it comes to what information the sellers are willing to share. The agent is not ethically bound to give you the information you seek and may even be forbidden to if they are the agent of the seller.

The lender is not a party to the contract. If the seller has accepted and signed the offer then you are under contract with them not the lender. The contract will outline the time frame for closing. The lender may or may not be able to remove the short sale contingency in time to close as per the contract. If they can't then you will have the option to walk away and get your deposit back or extend the closing date. Questions?

Are you facing foreclosure in Florida?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

Hire a short sale agent

 

Posted by

 

Join Our Facebook Fan Page Check Us Out On Google+ Follow Us On Twitter

 

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

 

 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

 Copyright © 2017 http://www.brokerbryant.com/ | All Rights Reserved

close

Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Gabe Sanders 11/15/2010 11:11 PM
  2. Tni LeBlanc, Realtor®, J.D. 11/17/2010 05:09 AM
Topic:
Home Buying
Location:
Florida Osceola County Kissimmee Poinciana
Groups:
Real Estate Rookie
Tags:
faq
short sale

Spam prevention
Show All Comments
Rainmaker
1,142,060
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Reserved for TLW

Nov 15, 2010 09:05 AM #1
Rainmaker
495,890
Jim Patton
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties

Good information Bryant.  So many people are under the impression that the bank is make the decision on the offer when in fact the seller still has to accept the offer.  Like you said the bank is just making the decision on if it will accept the short payoff or not.

Nov 15, 2010 09:14 AM #2
Rainmaker
292,151
Robin Rogers
Robin Rogers, Silverbridge Realty, San Antonio, Texas - San Antonio, TX
CRS, TRC, MRP - Real Estate Investment Adviser

That was a very helpful response, Bryant! Lucky this buyer found you. Maybe he will realize that he needs you to represent him.

Cheers,

Robin

Nov 15, 2010 09:27 AM #3
Rainmaker
524,552
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Bryant - Straightforward information to the buyer.  They need this explained before they write an offer.

Nov 15, 2010 11:36 AM #4
Rainmaker
354,843
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

Bryant, great information for Short Sale Buyers anywhere.  Thanks for the answers!

Nov 15, 2010 01:09 PM #5
Rainmaker
354,843
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

Bryant, great information for Short Sale Buyers anywhere.  Thanks for the answers!

Nov 15, 2010 01:10 PM #6
Ambassador
3,989,094
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

BB - well I don't have any questions. Can't make it much cleearer than that. Too bad the buyer did not ask these questions before getting involved and without you to help.

Jeff

Nov 15, 2010 02:57 PM #7
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Some excellent information for the prospective short sale purchaser Bryant.  Just wish there were more of them that actually listen to us.

Nov 15, 2010 10:59 PM #8
Rainer
432,184
Margaret C. Taylor
Century 21 New Millennium MD - Mechanicsville, MD
St Marys/Calvert/Charles MD Real Estate Agent

Great Question and answer session on Short Sales.  You made it so clear for the Buyer.  It makes you wonder "Who is his Agent?"  Margaret C.

Nov 15, 2010 11:56 PM #9
Rainmaker
1,023,071
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

I wish someone would come up with a name besides "short sale."  Because they sure aren't short.  Good, straightforward article.

Nov 16, 2010 03:43 AM #10
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,142,060

Bryant Tutas

Selling Florida one home at a time
Ask me a question
*
*
*
*
Spam prevention