Short Sales???

Are you working on the buyers or sellers side?? My best bit of advice is be patient and explain to your clients that short sales usually take a long time. Learn all you can through the process because if your area is like mine, shorts sales are popping up all over the place.

Debra, with short sales you need to realize that the emphasis is not with the owners but with the lender.  I'm assuming that you're the listing agent as you failed to mention if you're the listing or selling agent.  My comments will assume you are listing a potential short sale property.

First, you'll have to obtain your owners approval to speak directly with the lender(s).  Lenders (of any size) have an "asset preservation" department or some such name that handles short sales or those that may become short.  The lender will have the borrowers complete a balance sheet listing all assets and liabilities as well as a close look at income. 

The listing will need to state something like "price, terms, conditions and commissions are subject to lender approval".  Dealing with multiple lenders complicates matters.

The lender will want to see all offers that are received (as you would do with your sellers.  My experience is that when an offer is received and in one case with me, multiple offers, the lender tended to "foot-drag" in the process of approval to wait for better offers, etc.  This, to me, was the most frustrating because it's difficult to keep buyer interest up when it takes weeks for the lender to have their committee meeting to decide on an offer.

Anyway, hope this helps you (and perhaps others).  Best of luck and Happy New Year!

    

Hi Debra...Fort Washington...that's my ole stompin ground...I grew up in Clinton, MD....with regard to short sales...if you are on the buyers side...you should factor in time for the process, meaning from the time you write the contract, to the time the bank responds to the offer, remember what the home is listed for, is what the agent and the owner have decided to list it for, not what the bank has agreed on...it's the equivalent of kids making plans to sleep over, but they have not asked the parents yet...sometimes it take the bank a while to determine what they will sell the house for......so your buyers should have time on their side, if they are set on a short sale...