Do not take fraudulent short sale as it will put you, the agent, and your seller at risk. Lenders will eventually require homeowners to submit proof of financial insufficiency, tax returns and wage information.
Fraudulent short sales are rare, but should you be involved in this kind of transaction, make sure to execute a hold harmless agreement. Obtain a draft agreement from your attorney and have the homeowner sign.
Passing the hardship test is the very first part of the qualification process. Evaluate the seller over the phone to determine if the short sale will be viable. Should the homeowner fail the hardship test, the homeowner should agree to take a part of the deficiency or sign a promissory note. But this now depends on the lender.
The Gainesville short sale agents has had strategic short sales approved where cash contributions was not required. But you will not know that first hand, so the seller should agree to help right from the beginning. It’s great if they don’t have to contribute, but what happens when you find out at the end that they are not willing to apportion? It will be a great trouble then.
If unfortunately they don’t qualify and have to leave their home, then there will only be three options available to them: a deed in lieu, foreclosure or a bankruptcy. Ascertain that the seller is not in the middle of a loan modification process while filing a short sale this is because most lenders will not allow these two to be processed at the same time. If the seller’s loan modification has been denied, then you can use some of that document to process for the short sale.
Other Articles to Read:
Bank of America’s Cooperative Short Sale Program
Banks Are Calling Homeowners To Solicit Short Sales
Options To Prevent Gainesville Foreclosure when Unemployed
Do I Have to Pay for the Real Estate Agents Commission?
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