Insight on short sale purchase contracts

By
Real Estate Broker/Owner with Waterstone Realty

For those of you who have not ever done a short sale consider yourself lucky.  I enjoy them, but things are getting increasingly more difficult with these lenders.  If you would let me present directly to the investors instead of going through 20 levels of barriers these would be so much easier.

Around Florida I have several short sales Listed and Pending.  Oh how I can't wait for them to all close and go away.  They keep coming and coming.  I seem to get "interviewed" a lot when an agent is going to show one of my listings.  Now, short sales are 50% of our market, with Foreclosures seeming to be another 25% of close slaes.  Actives we have a broad spectrum.  Before someone even shows one of my listings they call me up to ask me about it.  The ones that call me seem to be very green on what a short sale is.  Let me define it as best I can.

When a buyer and seller agree on a purchase contract in Florida, it is contingent on 2 main things.  The buyer's contingency is that they must get a loan with the amount named in the contract.  The seller's contingency is that they sell the property free of any leins.  Simple.  When you have a short sale contract, both agreed to by buyer and seller, the buyer still must go to his lender and get approval to borrow the $.  At the same time the seller must go to his Lender servicer and ask for the lien to be removed.  Typically the lien would have been removed when the seller sold the home with equity and paid off the Lender removing any liens.   However on a short sale, there must be a hardship to were seller can't sell the home on their own AND the home must be near market value. 

With all of my short sale listings, when they go pending you treat it just like a regular contract.  Buyer and seller agree, you deposit escrow, and you lock the two in, you speak to your bank, we close on home.  The difference with the short sale is that the selling agent now has a boat load of work to do removing the lien.  So much fun!

If you see any of my listings in Florida don't be afraid to show them.  I am 100% in selling my short sales listings.  I get them approved and fight for all parties involved.  Get them all approved and let's close these!

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