It seems like a lifetime ago when the market started to tumble...home values decreased....people were losing their jobs...our divorce niche was operating on steroids with economic stress resulting in domestic stress..many agents left real estate...and indeed we did short sale some of their homes. There was no price range untouched...we shorted both residential and commercial properties for over a million dollars and barely a hundred thousand...people needed help and we were committed to give it to them...not without th education and systems that would benefit the homeowners in the very best way possible.
We flew to Florida and were part of one of the first CDPE (Certified Distressed Property Experts) classes...and two of only four agents in the state of Wisconsin with any advanced training in short sales. We went to two other states for additional training and then met with a Wisconsin real estate attorney to combine what we had learned from different methodology and put our own touch to the process...safely, legally and with care to protect the rights of the distressed and distraught Sellers who came to us in need of assisance in avoiding foreclosure .
We wanted the process to work....and we have done that over 300 times. Short sales are not for every agent....and if you know a Seller who for reasons of hardship is unable to pay their mortgage or has not been paying their mortgage...refer them to a short sale agent if this is not your area of expertise. You do not want to be the agent responsible for a homeowner's foreclosure because you lacked the education and experience to close the transaction successfully.
We invested in a website and still have it today...you will find it by clicking here...now mobile and secure.
We require all Buyers to ...of course give us a pre approval or proof of funds for cash transactions with the offer. Beyond that...we also have our attorney written and approved: Addendum PRN. This document first of all reiterates that the Seller is not responsible for any repairs,replacements etc. and the Buyer is purchasing the property in "as is" condition. While we encourage an inspection...there will not be a "repair/replace" amendment in this kind of transaction.
We do not submit the offer to the bank until after the inspection is completed since it is Buyer's choice after the report to remain in the transaction or terminate it as the result of the findings. The Buyer is required, per Addendum PRN to deposit the earnest money (typically in our market, 3 days from Seller's approval) and do the inspection (typically 5 to 15 days from Seller's approval). Many agents do not require either of these things until there is BANK approval. The reason we do is because....the Seller believes he has sold the property and the Buyer believes he has bought one...a great deal of time has passed and waiting for an inspection that can end the transaction is detrimental to parties on both sides of the transaction. Sellers need to beat the foreclosure clock...and we know the perameters for pricing that will be acceptable....so these two important steps move the process along or end it and wait for the next Buyer.
Whether you are a Seller...a Buyer or a Buyer's agent and are considering a short sale...be sure the listing agent has successful experience with not only LISTING short sales but CLOSING them as well.
This has been an educational post brought to you by Sally K. & David L. Hanson, Broker Associates with EXP Realty honored to be serving southeastern Wisconsin for all things real estate...upside down AND right side up.