Short Sales: What can go bad on a short sale when you hire an agent that doesn't understand short sales

By
Real Estate Agent with RE/MAX Action
IL – It always amazes me when I hear the stories of agents who talk about horrible short sales are. "Don't waste your time on a short sale", they tell homeowners. "They are a waste of time. The lenders won't approve them and the process is horrible. The last short sale I worked on took 9 months", they say. Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here. This gives short sales a bad name. Homeowners mistakenly believe that a short sale is impossible. I am here to tell you that is not true. The Stop Foreclosure Institute has sold and closed many short sales. There are two keys to being successful. First, you have to understand how the process works. Second, you have to keep an eye on the transaction from start to finish. Here is the closest comparison I can think of on why some agents hate short sales. Let's say that you are a brand new driver. You hop into a car, accelerate to 70 miles per hours, turn on cruise control, and then start reading a book. Every 5 minutes or so you look up to check on what is going on with your car. You aren't successful at driving a car. Your friend is thinking about learning how to drive. "Don't even think about driving a car. Driving just doesn't work and it is impossible to get anywhere", you tell them. Is what you just said correct? Is driving a car impossible? No, it's not! But, many agents make the same claim about short sales. They have never studied and learned the process. They have never successfully sold a short sale. But, they are sure ready to tell you that it doesn't work. Here is what they missed about short sales. 1. You need to be knowledgeable about the process. You need to have a solid understanding of HUD-1s, BPOs, and the short sale guidelines of the entity that owns or insures the loan. 2. You have to stick with the transaction. You need to follow up with the short sale lender regularly. You can't check in on the short sale every week or two. A lender will often ask for something and want it back within 24 hours. If they don't get what they need, then they will close the file. If you agent isn't checking in regularly, then the short sale file could be closed without their knowledge. In addition, your agent needs to be able to make sure the HUD-1s and BPOs are accurate. I will explain what those acronyms mean and why they are important in my next post. Ask the agent you are interviewing why they are important. Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at dtoomey@remax.net. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (847) 338-0180 Discover how other sellers successfully completed a short sale and request a free consultation by www.HouseByZip.com. Dennis Toomey specializes in loan modification assistance and short sales in Elgin Illinois. Elgin Loan Modification Help, Elgin Short Sales. Elgin Short Sale Realtor IL Short Sales. Realtor. Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Dennis Toomey's personal views and do not reflect the views of RE/MAX Action. This information on Short Sales: What can go bad on a short sale when you hire an agent that doesn't understand short sales is provided as a courtesy to our viewers to help them make informed decisions.
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Rainmaker
3,267,957
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Absolutely....always look at...or request...a printout of all the short sales closed from MLS....not what the agent SAYS they can do...proof of what they have actually done....better experienced than experimented.

Feb 25, 2011 11:04 PM #1
Rainmaker
259,411
Kathy Denworth
Century 21 Schwartz Realty - Islamorada, FL
Realtor in the Florida Keys, Islamorada, Key Largo

Short sales are a pain in the butt. There is no doubt about it. I am working with two. The first is my listing, they approved the short sale after 10 months, the buyer walked. Now they have another offer and have done nothing for 4 weeks other than send out a modification packet. It is an estate sale, the estate cannot refinance.

The second it asking the for proof they seller doesn't not have any income other than SS. She has to prove she did not file a tax return. How do you do that?

Feb 25, 2011 11:05 PM #2
Rainer
383,757
Jay Schmitt
Keller Williams Keystone Realty - Gettysburg, PA
Gettysburg Real Estate Agent

Good information on shorts but the list of things that can hold you up is almost infinite.

Feb 25, 2011 11:37 PM #3
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Rainmaker
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Dennis Toomey

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