Short sales are fewer than they used to be, but they are still around on the Emerald Coast of Florida. I recently inquired about a short sale listing in Destin, Florida that was represented by another real estate agent. Without going into the agent specific idiosyncrasies, this seller deserved better handling of his short sale listing.
The agent specified that the buyer pay title insurance. Actually, in most short sales, the short sale lender will pay title insurance on behalf of the short sale seller. This added cost makes the property less attractive to a buyer, as it's not expected that a buyer pay the title insurance for a short sale.
The agent specified that in addition to the purchase price, the buyer was to pay off the seller's substantial judgment lien for default on a personal loan (unrelated to the sale of the real estate). This amount was approaching $20,000. When asked if the amount had been negotiated down with the judgment debtor, the response was it would not be "until there was an offer". Again, that's not often the case and not great advice to the short sale seller. In many scenarios, I've had my seller negotiate down a judgment at the beginning of the listing, so there would be a more palatable amount to be paid - by the seller himself - or the buyer. Let's use $1500 as an example - vs. $30,000? Which is more likely to procure a sale and attract a buyer?
When there is a known judgment that may affect the ability to sell a short sale listing, face it at the beginning. I ask my potential sellers if they have any judgments or have debt in collections. If they are not sure, I suggest we run a title search. The cost is usually around $95. It will forestall future issues, such as dealing with liens and judgments discovered after a property has already gone to contract. A lien or judgment may interfere with a closing and may have to be paid in full prior to a successful sale. Ask your attorney for advice if you are concerned about selling your short sale real estate when you have other credit issues such as a judgment lien.
It's Wendy… It’s Sold!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Email Wendy: email@example.com
Wendy Rulnick, Broker, sells short sale, pre-foreclosure, REO and traditional real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Crestview, Sandestin, Seaside, Rosemary Beach, Okaloosa Island, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Florida.
This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.