Do You Really
Want to Make an Offer on a Short Sale Listing?
First off, is the seller/owner eligible for a short sale? Did they
recently refinance and pull out more equity in the property during the
high market value times? Is the seller 100% cooperative?
Is there more than one loan on the property? Are the lenders large or
small companies. Do they have an established department to handle
inquires?
Secondly, who will be negotiating the short sale? How much experience
does that person have and what is their personal closing average?
How good is the communication between agents, seller, lenders and
buyer?
Are you willing to hang in there even if it takes months to resolve
issues or get a response or consensus from all lenders?
Are you prepared that the final offer from the lender(s) may
substantially change the original contract?
Are you prepared to jump through all the additional hoops the lenders
throw out?
These are just a few of the questions you need to ask before embarking
on a transaction to list or buy a property that owes more than the current
market value. If the home has PMI (Private Mortgage Insurance) they will
have to determine whether they wish to cooperate with a short sale or
whether they will just pay the shortfall and let the lender foreclose.
That is why on the face of what looks like a sure deal is turned down by
the bank . Yes, they would rather foreclose, they make more money than
they would with a short sale. Short sale departments rarely have any kind
of training for an unskilled agent. So experience is either learned by
doing or working with someone that is already doing them and apprenticing
with them.
Lastly, in our market area (Sacramento/Auburn foothills, CA) only 25%
of the short sale listings that enter escrow actually close. Parting
point: Almost all loans generated in the last 5 years were sold on the
secondary market to investor pools. These pools are made up of hundreds
and thousands of investor individuals. So, if a loan was sold and now you
want to ask if they will take a lesser payoff, who exactly do you ask?
If you would like to discuss any of this please contact me:
Cathy Sarmento
http://www.CoolRealEstate.com (530) 823-5783
Cathy Sarmento Central California
530-823-5783
Cathy@CoolRealEstate.com
http://www.CoolRealEstate.com
Your Veteran agent and resource with the knowledge and experience to
guide you through a smooth transaction. (this is not a solicitation if you
are already working with a Realtor)
Article Source:
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