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liens on short sales...surprise ending!

By Cari Hendricks

Real Estate Agent with RE/MAX Gold - Midtown BRE#01449373

February 20, 2008 12:27 PM

There are many reasons to dissuade your client(s) from making an offer on a short sale: The long and arduous negotiating process between the seller, lenders and loan guarantor. The lack of ability of the sellers to make repairs or pay for a home warranty. The lack of ability of the sellers to credit the buyer for closing costs. That the Realtor's commission can be reduced. All this AND there is always the possibility of finding out (at the last minute) that there are liens like child support, tax liens, mechanic's liens, etc. There's no shortage of reasons to avoid short sales. My primary reason is I don't want my buyers to be disappointed if the transaction doesn't close...and they rarely do!

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Susan Jackowski

Lake Norman NC - Mooresville, NC

Lake Norman NC & Hudson Valley NY

I hear you it can be alot of work only to lead to disappointmnet.

Feb 20, 2008 12:30 PM

Gaye Granice

Robert Defalco Realty - Staten Island, NY

Associate Broker

I agree that they are nothing but headaches and I try and stay away from the whole process...

Maureen Rodriguez

Novadebt - Toms River Twp, NJ

Certified HUD Housing Counselor

I learned my lesson recently. Negotiated the deal, sellers were being very cooperative at first. Everyone was working together and then all of a sudden they're gone. Buyer was totally disappointed and burned from the experience.

Nonetheless, I found them something else that they are very happy with but I don't think I can go down that road again either....

Feb 20, 2008 12:34 PM

Mary Aguilar

David Lyng Real Estate - Monterey, CA

I really try to stay away from short sales - REOs are much better to deal with and hopefully your buyer will get a better deal.

Feb 20, 2008 12:41 PM

Vincent McKamy

Samson Properties - Fredericksburg, VA

Realtor Fredericksburg Virginia

I think that if you find the right house - you need to ask the selling agents the right questions before writing the offer. If they are on top of things you can generally tell. Which should make the process a little easier. One of the most important questions you should ask is - Have they ever done this before, with some success? Have you worked with this bank before? These are just a few - But as a standard rule ask a lot of questions before you right.

Feb 20, 2008 12:42 PM

Terry Kuehn

Family Real Estate Services, Inc. - Tacoma, WA

Self-Directed Roth IRA Associate

Currently working on a short sale. SURPRISE.... two judgments popped up practically at the last minute. If this deal holds together I'll be surprised to no end. One judgment holder is TOTALLY uncooperative. If the sale tanks, the house is scheduled to be popped April 4th, seller will then probably file Chapter 7 (?), then judgment holder will get zip. What a mess.....

However congenial I may or may not be, this is Number Last for me, for sure.

Feb 20, 2008 12:50 PM

Jason Grams

none - Roseville, CA

sounds like the listing agent didn't know what they were doing. The liens should have been uncovered LONG before the short sale was even approved.

Feb 20, 2008 12:52 PM

Cari Hendricks

RE/MAX Gold - Midtown - Sacramento, CA

Broker Associate

Jason- Is there a specific question we can ask to verify whether the listing agent knows what they are doing? I've been asking these questions: is it approved at the list price? have the seller's been approved for a short sale? do you have experience in short sales? have you ever closed a short sale?

Strangely enough (or maybe not), the answers is invariably NO to all.

Feb 20, 2008 01:14 PM

Well if they've never done one, it's a long tough road. When I started doing short sales, I partnered with people who knew how to do them and was in my broker's office every day learning the process. So if they don't have experience working a short sale you'll just be frustrated bringing the buyer. I would ask them how long it typically takes them personally to get an approval. I've been getting them in less than a month which is faster than average. They will know on average how long it takes and how long specific lenders take if they have actually worked a short sale before.

Feb 21, 2008 02:24 AM

liens on short sales...surprise ending!

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