Done123, Other/Just Looking in Fairview Heights, IL

Can home owner's do their own short sale bypassing realtors? Can owners stay in their home after short sale is done?

Asked by Done123, Fairview Heights, IL Thu Aug 25, 2011

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Yes, a homeowner can attempt to do their own short sale. Although, without much experience in short sales, it is likely that the short sale won't close, or the homeowner won't get the best possible result from the short sale. Many banks will not allow a homeowner to stay in the property after a short sale. Feel free to give me a call to discuss your specific situation and goals. I would be happy to explain the process to you.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes Thank Flag Link Thu Aug 25, 2011
why would you even want to take something like this on your own?
0 votes Thank Flag Link Thu Aug 25, 2011
First and most important...Speak with an Agent who knows how these work. Start with a CDPE... an SFR if none is available, better yet someone who has both designations. Yes you will have to move and yes again most banks willl require the home to be listed.

Regards,
0 votes Thank Flag Link Thu Aug 25, 2011
Banks will insist the home be listed with a Realtor. They recognize that they will get the best price if they do so. And, owners are almost never allowed to stay in their home after the sale is finalized. You should check the bank's paperwork carefully, but more than likely you will not be allowed to stay.
0 votes Thank Flag Link Thu Aug 25, 2011
The bank will want you to work with an agent who is very familiar with the process. Short sales already take long enough, if all sellers started negotiating their own short sales the process would clog up the banks' systems.

That reason above is not really the best answer I could possibly give you.

Really, you do NOT want to negotiate your own short sale. All the bank wants to do is try to get more money out of you any way they can & you as the owner, have no idea what you Must tell them, what you don't Have to tell them & what you Need to tell them about your current income & assets.

A Realtor who is a short sale expert, their job is to get you in & out of your short sale with the least amount of impact on your credit, making sure you don't have a tax liability (if it's your primary residence) , make sure you're not set up to get hit with any future deficiency judgments & make sure you're not coming out of pocket to close.

I came across your question as I was looking for a particular rental scam in Southern California, yours just came up as a "most recent question", anyway, if you'd like I'd be happy to find a REAL Short sale expert in your area, I know what questions to ask to find the right person for the job, it is so important you use someone who has a good track record of closing short sales, but who also has a 95%+ success rate in closing them. For example, I know an agent in my area who has closed 34 short sales, although that number is high, it actually represents a 50% success rate in short sale closings (not good)

Email me directly if you'd like, I don't look back on this same Trulia thread for answers after mine.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
Short Sale Expert
0 votes Thank Flag Link Thu Aug 25, 2011
Done123,
I have been doing short sales since 2002 and wouldn't advise a homeowner to do it themselves. First, it’s a major commitment of time and the learning curve would be steep. The bank will not pay you a commission, but would pay an agent.
Short sales generally require that the purchase be an "arms length transaction" meaning you are not selling to your brother, sister or best friend. They generally require their not be any arrangements, like a rent back, so staying in the home after a short sale is not likely.
If you are in a position that requires you to do a short sale my best advice is to find an agent with experience, training and a track record of successfully closing them. Some agents take a class, receive a fancy title and then learn at someone else’s expense. Others do what worked 20 years ago and never get the sale closed and it goes into foreclosure. Having up to date training, recent meaningful experience and a track record of getting sales approved and closed is what I urge you to find.
A good Short Sale agent will also refer you to an attorney for a consultation so you can be fully advised of all or your legal options. Agents know a fair amount, but we are not attorneys. There are times when another remedy may be a better option for a home owner; it really depends on your entire situation.
Bottom line, don't try this yourself. Even good agents don't close 100% of their short sales and the risk to you is too great.
0 votes Thank Flag Link Thu Aug 25, 2011
You could try, but why would you? The Bank pays all the fees and what they see as a professionally managed transaction will increase their comfort level with the price, ensuring the best chance of approving the deal. No.. you cannot stay in the home or net any profit. The bank will lose up to many hundreds of thousands depending on the home and situation.
0 votes Thank Flag Link Thu Aug 25, 2011
Unfortunately, an owner cannot stay in the home after a short sale, as you will be selling it to someone
and they will want the home they just bought. Also, most all banks/lending institutions require you to use a Realtor, but it's to your advantage as you will not be personally paying the commission fee. That comes from the sale proceeds which are usually less than you owe. Most short sales don't leave any profits for the selling owners. If you would like me to walk you through a short sale scenario, just call me and I can help you.
217-851-1663
0 votes Thank Flag Link Thu Aug 25, 2011
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