Home Selling in 48188>Question Details

Stephanie Ge…, Home Seller in 48188

Does my home listing need to mention that my home will be a short sale?

Asked by Stephanie Gerbig, 48188 Sat Feb 7, 2009

I'm working with my lender to get permission for a short sale. I've seen a few home listings that include verbiage that states the property would be sold via short sale. And someone told me this was a legal requirement. Is this true? I just want to make sure I'm doing things correctly (and legally). Thanks!

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1 vote Thank Flag Link Sat Feb 7, 2009
Stephanie,

Your agent will be able to provide you with the most accurate information on this topic. BUT put yourself n the shoes of the MR. BUYER, would you appreciate being suprised by finding out you were dealing with a "short sale?"
0 votes Thank Flag Link Sun Feb 8, 2009
The "short sale" is a MAJOR condition of the sale of the house! It must be disclosed because you need your lender to agree to take less money, if the lender does not agree, the house will go into foreclosure, the buyer needs to know of this up front because is no longer your decision but the banks also.
0 votes Thank Flag Link Sun Feb 8, 2009
Honesty is the best policy. Ask yourself "why" you wouldn't want to disclose this? You want to market to potential buyers who are actually interested in buying your house. Instead of worrying about the 2 words -- short sale -- spend your time working with your lender to make sure they have absolutely everything they need in their possession to make the transaction go smoothly once you have an offer in hand. This includes your hardship letter, bank statements, tax returns, current market value of comparable solds, etc. Go to http://www.annarborshortsalespecialist.com to learn more.
0 votes Thank Flag Link Sun Feb 8, 2009
There is no legal requirement that a short sale be disclosed, but our MLS rules do require it to be in the MLS as Gary, Cicely and Derek have said.

Frankly, you want to disclose the short sale. A buyer who finds out about it later, might lose interest because of the time frame and uncertainty often involved. There are other buyers who are actively looking for short sales, and they would not find your house if you did not include that on the listing.

Good luck with your sale.

Maureen Francis
Web Reference: http://miOaklandCounty.com
0 votes Thank Flag Link Sun Feb 8, 2009
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
Review with your listing agent, however best reference short sale which can take longer some buyers could be at a disadvantage if searching for a faster close.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Feb 7, 2009
Stephanie,

This information is available to the public from Realcomp about third party approval. (short sales, relocation, etc) http://www.realcomp.com/Support/upgrades

I would agree with Derek that most lenders do not agree to a short sale until after there has been at least one offer on the property. This may or may not hold up your approval, depends on the lender.

Just a suggestion, the State of Michigan offers assistance through http://michigan.gov/MSHDA houseing counselors. Perhaps you've seen their commercials offering assistance. They may be able to help you "grease the wheels" with your lender.
Web Reference: http://mi-living.com
0 votes Thank Flag Link Sat Feb 7, 2009
Out "multilist" has remarks for agents and for the public. Agents need to know the situation to prepare their buyers. The public remarks do not have to mention a short sale. Those remarks can stress all the wonderful reasons that a buyer should buy your home. Get the buyer interested and then their agent can give them all the details. The only reason a buyer might pass on a short sale is that it will probably take more time to close. You say you are working with a lender. I believe your home needs to be "listed" for the bank to do a short sale. If it is, your agent should do the negotiating. Your lender probably will not "commit" to a short sale until they have seen a purchase agreement. They will want a "hardship" letter and a financial statement from you. Your agent should have the expertise to assit you with those documents.
0 votes Thank Flag Link Sat Feb 7, 2009
Hi, Stephanie!

Yes, the MLS that your house will be entered in (Realcomp) does require the property state that it is a short sale.

Just so you are aware, most often the permission and approval to do a short sale often occur after the home has been marketed and an offer presented. I would encourage you to speak with your Realtor (if you do not have one, I request the opportunity for an interview), and likely get the house marketed ASAP. I am putting a couple short shale properties on the market this coming week.

Please visit us online at http://www.DoorToDreams.com, and you can always phone me at 734.678.4745.

Enjoy the sunshine!


Derek Bauer, Associate Broker / Realtor
Real Estate One
Web Reference: http://www.DoorToDreams.com
0 votes Thank Flag Link Sat Feb 7, 2009
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