Don't Fear Short Sales!

Don't Fear Short Sales!

Short sales are something, that in our market, you can not shy away from, as a buyer, since they make up 75% of all the homes on the market. For some sellers that are in a financial hardship situation the are faced with exiting their mortgage through a short sale. As full time agents we have the opportunity to represent both sides. In our experience we have learned that there are valuable tips for both buyers, sellers and agents that will make the process a lot smoother.

Buyers

Select to work with an agent that has a successful history with short sales.

The agent needs to interview the listing agents knowledge on their process for approving short sales. We have witnessed buyers waiting months for a home to find out that there was not enough communication during the process and the home goes into foreclosure. 

Be informed with what banks and how many loans you are dealing with. The larger institutions have better systems in place for the short sale process that in turn speed up the process. Depending on the amount of loans will also determine the length of waiting since you are requesting approval from each bank and determining settlement amounts that will be divided amongst each institution.

Short Sale Sellers

Interview and agent and their process for negotiations. Research their history to make sure that you are dealing with a diligent agent that will be in connection with your lender(s) to prevent foreclosure and get the approval you need.

Communicate with your bank as the calls come in and inform them that the home is up for sale and that your agent may be reached for further information. The larger institutions have various divisions that might not know about the sale. It's wise to tie in as many departments to make sure that everyone is on the same page.

Agents

Don't fear short sales. If you don't have the experience to 100% commit in processing a short sale, research a third party that specializes in this area. Yes, it will cost you a fee but remember there's a price to doing or learning business.

If on the listing side, make sure you send weekly updates to the buyers agent to increase the chances of the buyers waiting for a transaction that might take several months. If on the buyers side, request a weekly update to see how the transaction is progressing.