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One Way to Improve Short Sale Successes

By
Real Estate Agent with Group 46:10 Network @ eXp Realty AZ Lic# SA663942000

I have heard lots of people talk about the problems of getting short sales approved.  We all understand the banks position - they made a bad loan (often), followed by a market decline, and they want to minimize their losses.  Let's look at the two most common reasons your short sale did not get approved:

1. The package was incomplete.  The lender will tell you exactly what they need and you need to provide everything they ask for, or you will end up jockeying papers forever - or until they get a clean offer.

2. Your offer wasn't any good.  The bank isn't looking to do charity work here.  They want the highest offer from a reasonable buyer.  Ideally, they want cash so looking to investors is a great idea (if you need one in the Phoenix area call me).  If you are submitting an offer and it is subject to the sale of an existing home... well... ah.. you shouldn't be doing short sales.

Let's look at how you can get better at the short sale game:

1. Partner with an agent who has done them.

2. Find investors to partner with (I was serious about buying short sales in the Phoenix area)

3. Take a course in short sales.  The truth is a few years ago, you didn't have to know what a short sale was (and likely didn't) and you could have made a killing.  Today, it's a different story.  Agenta and investors are making huge profits in the short sale market - you just got to know how to do it.

My real estate investment group here in Arizonao offers A to Z training in real estate and we have produced some of our areas most profitable and successful investors.  We have affiliates in most states, so if you are serious about your real estate career and want to take the next step in your professional development contact me at 800-453-9290 or anthony(@)atozlender.com

Wisihng you success!

 

 

Comments(6)

Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

That is the way to entice buyers to pick up short sales.  Unfortunately too many short sales experts are not experts at least in the Metro Detroit area.

Aug 04, 2008 01:07 PM
HomeSalesForce.com Team Brokered by eXp Realty
eXp Realty - Canton, GA
Canton, Alpharetta, Roswell, Woodstock, Atlanta

We had a call in our office about doing a loan assumption instead of short selling. Primarily for agents with seller. Instead of offering a short sale the bank could/would do a "assume and agree to pay". The buyer assumes the loan. Seller remains on the loan too with the new buyer. The new buyer doesn't have to qualify (or with as much detail) because the first borrower is still on the loan. That seller/first borrower benefits because the loan is getting paid and the bank would go after the new borrower if they don't pay since they "agreed to pay". It sounded like a win, win, win. You just need the right set of circumstances to pull it off. Might be a better option for some of the people short selling their homes.

Aug 04, 2008 01:10 PM
Anthony Kirlew
Group 46:10 Network @ eXp Realty - Gilbert, AZ
Helping You Make Fiscally Sound Real Estate Deals!

John - I am not sure how many banks are doing assumptions, but most sellers in a short sale siutation would not want the liability of the mortgage. In fact, most of them couldn't afford it and would need to free their credit up to buy, but I imagine the situation does exist somewhere.  As an agent, I don't know if I would advise my client to do this.

Aug 04, 2008 01:19 PM
Anthony Stokes-Pereira /REALTOR
Howard Hanna Rand Realty - Nanuet, NY
Howard Hanna Rand Realty

Hi Anthony;

 Great Post! I thank you for sharing, we all need all the help we can get. Thank You!!!!

Aug 04, 2008 01:29 PM
Diane Marletto
Ruckersville, VA

Great post!!! Thank you...  Another reason for a short sale falling out is perhaps the value is too high or they dont see a hardship.. Just a thought!

 

Aug 05, 2008 02:23 PM
Stanley Barsch
Realty Executives Premier - Silver Spring, MD
Realtor, GRI - 240.882.8512

Anthony - 4) Stay within 5 miles of any short sale.  :(  I'm not a big fan, ALTHOUGH your blog provides a lot of great advice!

Stan Barsch

Aug 07, 2008 11:50 AM