Home Buying in 90210>Question Details

Fmrweb, Home Buyer in Santa Monica, CA

who is in charge of a short sale?

Asked by Fmrweb, Santa Monica, CA Sat May 21, 2011

with high value properties what are the potential problems. who can you trust?

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Alex Qureshi’s answer
First the seller needs to be 100% motivated to go forward with the short sale process. This means that the seller has explored all other options for example loan modification etc and have came to a conclusion that short sale is the most viable option to deal with the hardship that the seller faces. Second most important link in this chain is having a strong agent who not only is experienced in dealing with short sales but also knows and understands how to deal with the investor. The third link in this chain is the investor who is the note holder on your mortgages. Your listing agent will collect all the documents from you and send it to the lender. Depending on who the lender is, your file will be assigned a negotiator, who will also be the point of contact for you and your listing agent. All the communication including submitting an offer, will be done with this negotiator. The negotiator will then present your offer internally to senior management and/or investor. Based on this review and a Broker price opinion on your property, present value if your home will be determined and if the offer your agent has presented to the negotiator is close to the BPO value then a Short Sale approval will be granted. On the other hand, if the offer is considerable lower then the boo value, a counter offer will be made. So, to answer your question, the seller, agent and investor has the most control over the short sale process.
0 votes Thank Flag Link Mon Nov 4, 2013
Many agents claim to be short sale specialists and list properties out of their area of knowledge. Frankly this can create its own problems. A good agent who has a property listed will be working with the owners on title of the property to put their paperwork together and assist them in submitting it to the bank. The agent will communicate regularly with the bank on the status of the listing and will price it realistically. Sellers have choices that are important to make when putting the property on the market and have to determine their ability to handle stress - it is important for the agent to discuss this in advance so everyone understands and knows their role.
1 vote Thank Flag Link Thu Jun 30, 2011
The short answer is: The listing agent/negotiator, the seller, and the lender.

When you make an offer on a short sale listing, the person who will have the greatest impact on whether or not that offer is accepted and you get to close on the property is the listing agent/negotiator. Make sure, your buyer's agent is experienced in short sales. You might wonder why this important if your agent has NO control over the process. What you are counting on is that they will have is the knowledge of how a short sale works, and therefore be able to qualify the listing agent/negotiator and advise you whether or not they (the listing agent/negotiator) know what they are doing. Unfortunately, some agents have an 85% close rate and others have a 25% close rate. Allign yourself with a great agent and you have a higher chance of getting that home you want. Dare to Dream.

Shel-lee Davis, QSC®
Certified Distressed Property Expert – CDPE®
Short Sale & Foreclosure Resource – SFR®
Certified HAFA Specialist – CHS®
SSG Pro®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
424-2HELP12 (424-243-5712)
myrealestateanswers@gmail.com
http://shel-lee.listingbook.com
1 vote Thank Flag Link Sat May 21, 2011
Hi Fmrweb,

The listing agent (seller's Realtor) lists the house for sale. Once an offer is received, they present it to the seller (home owner) for their approval. If the seller (home owner) accepts the offer, then the listing agent forwards the offer to the seller's lender for approval. A negotiator is assigned to the file/property. The negotiator is the 'middleman/woman' between the seller and the lender/investor. The lender/investor has the final say in the acceptance of the offer.

As for 'who can you trust', hopefully you have a Realtor you trust. If you don't, you need to interview a few and hire a new one.

Short sales can be very time consuming because there are so many parties involved in the approval process. Also, you have to keep in mind that the lender/investor is going to approve a sale price that is in line with market value of the property, not necessarily the list price.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
1 vote Thank Flag Link Sat May 21, 2011
FMRWEB by now I am sure you had your question solved since this question is about three years old! Never the less I find that too often other people are reading the questions and the answer remains universal. The Short Sale is handled by the Bank and its representative. The listing agent is just a person who packages the documents and the goal is the same as the buyer's as well as the buyer's agent and the seller. Everyone wants to close the transaction. The Listing Agent and the Buyers agent have everything to gain by having it close faster.....unfortunately they are all at the mercy and priority or the there lack of the Bank's representative.

Should you or anyone else need questions answered privately, please reach out to me directly

Endre Barath, Jr.
Berkshire Hathaway
Beverly Hills, CA
homes@endrebarath.com
310.486.1002(m)
Web Reference: http://www.endrebarath.com
0 votes Thank Flag Link Sun Feb 2, 2014
Hello,

A short sale will typically have a listing agent in charge. The bank will only allow a short sale if a home owner is deeply under water and in hardship, but to answer your question agents, negotiator and attorney will 99% of the time handle short sales.


Sincerely, 
Antonio Sanchez
Exit Realty Search
Licensed Real Estate Salesperson
3928 E. Tremont Avenue
CELL: 347-320-0673
FAX:    347-202-4966

antonio@exitrealtysearch.com
http://www.lovingmytown.com

#RENTAL EXPERT
#FIRST TIME HOME BUYERS
#VA LOANS
#203K LOANS
#SHORT SALES
#LISTING AGENT
0 votes Thank Flag Link Wed Nov 20, 2013
The listing agent is in charge of following through with everything but everyone involved is at the mercy of the bank. I cannot think of any problems that you would not run into with the purchase a regular sale. The good thing about a short sale is that typically the owner would tend to be more honest since they are not getting anything from the sale. The only problem would be be that typically a home inspection is for your peace of mind as the bank will not negotiate fixes.
0 votes Thank Flag Link Wed Oct 30, 2013
That is a very good question to ask a real estate agent.
0 votes Thank Flag Link Wed Oct 30, 2013
Dear Fmrweb,
Trust your Buyer Agent, their job and responsibility under the law is to protect your interests.
0 votes Thank Flag Link Wed Aug 10, 2011
The lender holds most of the cards in this situation.
0 votes Thank Flag Link Thu Jun 30, 2011
Lender is truly in charge IF they don't like your offer not much you can do .

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Jun 17, 2011
The bank or Company tied to the property is in the drivers seat. The agent is assisting in the process of the transaction.
0 votes Thank Flag Link Fri Jun 17, 2011
Your Realtor should be in charge of the short sale, but most times is not. You Realtor has to be sure that the full packet of Documents are in order when making the offer for you, they need to be sure that the Seller's Realtor and listing agent has done their paperwork properly, have you Realtor to ask for copies of all documents sent to the bank. You Realtor needs to do a CMA of the property for you. This is to ensure that the property is actual worth the offer price. The Buyer's Realtor also needs to explain all the possibilities that can come from the offer, also prepare the buyer of the Addendum package that will be returned by the bank. An educated buyer has better understanding of what will happen and what will be expected.
0 votes Thank Flag Link Sun May 22, 2011
After reading the Comments it sounds like the Agents that are responding, have started the Negotiating before they have an Offer. I say this because when I work on a Short Sale the Offer goes in with all the Document needed for the Short sale. It sounds like they have already been negotiating a price before you stepped into the picture.
A Short Sale Package must be Submitted alone with your Offer or you are only going to get 10 to15% discount at the most. Your Offer should be 82% of the BPO and the BPO should be at the most 85% market value, you have to remember that this is a Distressed Property and Can't be sold at Market Value. If you wait and buy it at the auction the starting Bid well be 68% of the Loan that is Foreclosing, so 70 to 73% of that is what your Offer should be.
The Agent is trying to swing the Highest price, But you have to Remember that the Agent is not representing the Bank, that is where the problem is. I say Good Luck. If you want a Good deal try looking at the Approved Short Sales because if an Investor Re listed the Property then you can negotiate a lower price than the Listed price. Oh Yes I am also a Realtor.
Web Reference: http://www.Bank-Funding.com
0 votes Thank Flag Link Sun May 22, 2011
It does not state anywhere that the Agent is the One who has to negotiate the Short sale. All it says is the the Property has to be listed with an Agent.
The person who has the Authorization to Release Information is the Party that has Control, Remember this, the Homeowner has all rights to the Property until the Bank takes it back. not the Realtor I have a Buyer that has his lawyer do the Negotiation and he gets a better discount than I or any Realtor can get.
All I know is that for some reason the Realtor thinks he or she is best suited for that job, when you buy a house you say what your terms are.
If I am buying a Car an I want it in Blue and the Dealer makes me take it in Red and 2 yrs older, who spent my money the Dealer or me.
Web Reference: http://www.Bank-Funding.com
0 votes Thank Flag Link Sun May 22, 2011
It would be more helpful for you to email me directly to explain what your current situation is.

Who's in charge of a short sale: Ultimately the bank, they need to accept the terms. But it's up to the listing agent to guide the bank to find current value by working with the appraiser they're going to send out. Better yet, if the buyer is in primary position with their offer, I strongly suggest the buyer, NOT wait on the bank to send out there own appraiser but to order their own & have the listing agent submit it with the initial short sale package.

On Short sales I always say, 'it's the buyer & the listing agent VS. the big bad bank".

On High Value properties specifically, potential problems could be: The seller has money, but is strategically short selling. The seller needs to be in a position to do a cash contribution, it may be highly likely they're asked / told to do so by the bank in order to be fully released of the lien. Finding out if the owner has equity loans is very important.

Email me directly, I can give you more valuable information & help you out.

EmilyKnell1@yahoo.com
Realtor Since 1996
Short Sale Expert
562-430-3053 cell
0 votes Thank Flag Link Sun May 22, 2011
As you probably already found out "short" is an oxymoron, but to answer your question, yes, it is mainly the bank who has the loan on the property and their negotiator, and what makes a short bearable is when you deal with an agent who knows what they are doing, if you don't they end up loosing the sale because they don't press the bank's negotiator, and they don't follow up. I have closed short sales in 30 - 40 days, but it was a lot of hard work and long hours on the phone with everyone!!
0 votes Thank Flag Link Sat May 21, 2011
Good question! The bank holding the loan is the final say on an offer's acceptance. However, keep in mind that there can be more than one loan on the property with separate banks, both have to approve. If there is PMI (private mortage insurance) and or leans on the property they all have to approve, or release, as well.

Most important, in my opinion, is to make sure that an attorney or negociator experience in short sales is overseeing the process.
0 votes Thank Flag Link Sat May 21, 2011
Shanna and Scott got it right. The Asset Manager is in control of the approval and timing of the sale and the listing agent is responsible for keeping the sale moving forward and keeping all parties up to date. for more information on short sales go to the link below.

Best Regards,

Eric Soderlund
Realtor, GRi, SRES, SFR (Short Sale Foreclosure Resource)
0 votes Thank Flag Link Sat May 21, 2011
In most cases the listing agent is in charge of the sale but the asset manager from the bank holds all the power to decide if it will or will not be approved. The sale usually will go as good as the listing agent is expereinced in conducting a short sale.

http://www.trulia.com/blog/scott_godzyk/2010/10/so_you_want_…


Please see my blog for a full list of tips and advice on buying a short sale.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat May 21, 2011
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