Home Buying in 91405>Question Details

bichc_99, Home Buyer in Northridge, CA

After signed off on the short sale approvals from the banks, please let me know what I, the buyer, have to expect to do more from the listing agent?

Asked by bichc_99, Northridge, CA Sun Nov 25, 2012

The selling agent knows how many loans the owner owes or not? Since my agent said she doesn't know about that; how to find out how many loans to get approval? This is the right time to get a loan, isn't it?

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Jhon Cordova’s answer
Hello,

It's a great time to get a loan right now, low interests rate and low home prices. Couldn't ask for anything else.

Regarding the short sale, the listing agent should be able to get your agent more information about it. or the selling agent can look at the preliminary title report, and find out there.

Let me know if you need help with anything.

Thank you


Jhon Cordova Realtor®, Acredited REO Agent™
CA DRE Lic #: 01817265
Tel: (818) 968-1691| Fax: (818) 923-5201
Search for Homes at http://www.jhoncordova.com
Web Reference: http://www.jhoncordova.com
0 votes Thank Flag Link Mon Nov 26, 2012
You've asked several questions here.

Your agent should be able to look on a title report and see how many loans are in places.
As far as you obtaining a loan, it's a GREAT TIME to get a loan if you qualify and can pass through the lender's stringent requirements.

Good luck.
0 votes Thank Flag Link Mon Nov 26, 2012
For you, yes this is the right time to get a loan since interest rates are so low.

I think Ronnie Raincloud in the previous answer is trying to freak you out.

What you need to find out is this: 1. Does the owner have 1 or 2 loans? 2. If there are 2 loans what type of loan is it? A purchase money loan or an equity loan or line of credit & how much equity, if any was pulled out by the owner.

It is important to know how much in an equity loan the owner pulled out because YOU need to be aware that the 2nd lien holder will probably need as much as a 20% payout on the balance owed paid by you (normally short sellers are up a creek & can't afford this).

If you know these things & the possibilities of what may be asked of you,now, then after getting short sale approval, you won't be blindsided with "Surprise, we need another $10K from you in order to close the deal over & above your down payment!".

It is also possible that cash contributions are requested from the lien holder even if there is no equity loan, so be aware of that too. Buying a short sale is NOT the same as buying a standard equity sale OR an REO & it's important for buyer agents & listing agents to let buyers know of these possible cash contribution requirements up front.

The Preliminary Title report will tell you if there are 1 or 2 loans, but it likely won't tell you if that 2nd lien is or isn't an equity loan.

Shoot me an email directly if you want to talk about this further, I won't look back on this same Trulia posting for answers after mine.

Emily S. Knell
EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Realty ONE Group
Short Sale Specialist - 100% success rate
0 votes Thank Flag Link Sun Nov 25, 2012
It is ridiculous that the Listing Agent would not know how many loans the Sellers have:
They must not want you to know.
This is critical information!
I would call or visit that Agent's BROKER and demand to know it.
If there is a 2nd loan, your chances of closing this deal will drop dramatically!


Good luck and may God bless
0 votes Thank Flag Link Sun Nov 25, 2012
Thank you so much for your reply. Actually, the selling agent, not the listing, said she doesn't know how many loans to get approval. Then after getting all the approvals I don't know what was wrong that the listing agent asked for an extension. However, this extension will be in few days to expire, she still told me it will need another extension. While her partner, a loan officer, told me my loan application got approval already, just waiting for appraisal...
Can you please let me know if after getting all approvals from the listing agent, DO I NEED ANY THING ELSE TO DO FROM THE LISTING AGENT?
What my agent's benefits if I loss this deal because of not meeting the deadline?
Flag Sun Nov 25, 2012
Yes it is time. The prelim title will show how many loans. Be sure and see how much time the seller's banks are giving you to close.
Good luck,
0 votes Thank Flag Link Sun Nov 25, 2012
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