Once again, I was reminded howi important it is for Sellers to hire an Agent with Short Sale Experience if they plan to list their home as a short sale.
I will remind everyone that I am an Exclusive Buyers Agent. I do not take listings. So, I am not saying this so that Sellers will list their short sales with me.
When I have a client interested in a short sale property, I contact the listing agent to find out the likelihood of the short sale getting approved. How do I do that? I ask questions! For example: What is the status of the short sale? Which lender is servicing the loan(s)? Do you know if there is mortgage insurance on the first mortgage? How are you going to handle submitting offers to the bank, especially multiple offers? Are you going to be negotiating the short sale for the Seller or does the Seller have an attorney or short sale specialist involved? If you are negotiating the short sale, how many successful short sales have you negotiated? Has there been a BPO or Appraisal ordered? How far away is the owner from foreclosure proceedings? And many other questions are asked too!
Today I asked some of these questions. The responses I got floored me. The listing agent admitted that she had never handled a short sale before and that there was a lot she didn't know about them. (Usually, most agent will attempt to convince me that they know what they are doing.) Then she started asking ME questions, telling me that I knew more than she did. That was the scary part. I have never negotiated a short sale, being a buyers agent. The other answers she gave me also indicated that the short sale would not be approved under the facts presented. Any experienced agent should have known that.
I wondered why a Seller would even consider listing their home with someone who did not fully understand the short sale process or at least who was not working with an associate or an attorney who did. As a Buyer's agent, my advice to my client is that this short sale is unlikely to be approved given the facts involved & the lack of experience of the agent in this situation. Getting tied down in a contract that probably will not be approved after several months of waiting is not in my client's best interest.
So, Sellers, if you have not heard it yet, I will say it again. Do not list your short sale property with someone who does not have short sale experience. Buyers with good representation will not be interested. And even if they are, your likelihood of a short sale approval is pretty slim.
Buyers, if you are looking at short sale properties in Canton, MA, contact a Canton MA Buyer Agent who will ask the right questions and protect your interests.