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Joyce Stamps…, Real Estate Pro in Knoxville, TN

how do short sales work?

Asked by Joyce Stamps-Mayer, Knoxville, TN Thu Jun 18, 2009

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5
Joyce, Contact me at the Coldwell Banker Bearden Hill office. I'll be glad to answer any of your questions.
0 votes Thank Flag Link Fri Jun 19, 2009
For more detailed information about short sales:
Free e-Book: ShouldIShortSaleMyHomeBook_PSRET
87 pages of detailed information about the process.
0 votes Thank Flag Link Thu Jun 18, 2009
If you truly want to understand how a short sale works...you should honestly listen to the people that specialize on those type transactions. Real Estate Agents may dabble in "short sales", but the good news is...there are individuals who solely manage transactions in distress.

For more information and a very informative article about "short sales", follow the link...it will take you directly to the article and provide you with additional options if you should require more in-depth information.
0 votes Thank Flag Link Thu Jun 18, 2009
Short sales work for a borrower who owes on his mortgage more than
what his house is worth. The borrower have a trouble financialy that he
can not make his mortgage payment for a variety reasons( lost his job,
has been transfered from one city to another, getting a divorce or he or
a member of the family got sick and got a lot of medical bills). Those are
among other things, some of the reasons that qualifies the borrower to
be in short sale. You get the borrowet signiture that he authorizes you
as Realtor to list his property ver competitively, then notify the bank that
you are representing the borrower and ask for the payoff amount on the
loan. You ask the bank for the package of paper work that is required
to filled up and submitted with the offer when you have a buyer. Your role
as an agent to convice the bank that this is the best offer you could get
according to the market conditions , that you did your job of marketing, that
you did so many open houses, so many showings, that the price of the
property was competitive and of course all this has to be documented.
once the bank agrees to that offer then you proceed to the closing.
As an agent representing the seller, I will be looking to protect the
interests of the seller. I make sure that the loan appears as paid
off as agreed on the credit report of the seller, that my client is not
going to be harrassed by the bank for the balance of the loan.
0 votes Thank Flag Link Thu Jun 18, 2009
Joyce it just takes alot of patience and some time. I have a number of short sale listings. I had one closing today and another coming up. Both listings had multiple offers. The problem with short sales is that you have to be flexible since each one is different depending on the banks involved.

For the most part you start with the listing. Begin the communication early and make sure they have all the info including the listing agreement. Most banks will send out a financial packet to fill out (the sellers) that needs to be completed and sent back. Then I advise reducing the price to bring in the offers.

If you are on the buy side patience is key. You need to be patient as the listing agent works their way through the banks red tape and gets the sale approved. It takes some work though.

Hope this helps,
0 votes Thank Flag Link Thu Jun 18, 2009
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