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Fl-homebuyer, Home Buyer in 33301

How can a potential buyer verify if the seller's lender has agreed to enter into a short sale process?

Asked by Fl-homebuyer, 33301 Mon May 18, 2009

How can a potential buyer verify if the seller's lender has agreed to enter into a short sale process before making an offer?

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Hello FL Homebuyer,

If someone tells you that the bank has already "approved the short sale"...RUN! It's the surest indication of an agent who doesn't have a clue at what they are doing. (one exception if the short sale was approved for another buyer and the buyer couldn't close)

As you can see from one of the answers below, some agents who have not chosen to specialize in this niche of the business stay away from it. Unfortunately too many try to wing it.

You, nor anybody else can call the Seller's bank and verify anything. The only way you can is by beng given a Letter of Authorization from the Seller. Otherwise known as a LOA.

If you would like more information on short sales, I have written a number of articles on the subject and recorded a video explaining the process.

What is a short sale? http://www.robinashley.com/2009/04/21/what-is-a-short-sale/
How To Have A Successful Short Sale: http://www.robinashley.com/2009/02/26/short-sales-fort-lauderdale/
Ultimate Short Sale Buyers Guide: http://www.robinashley.com/reports/shortsalebuyersguide.pdf

This is just a sample. For more simply visit my site at the Fort Lauderdale Real Estate Blog (http://www.robinashley.com)

Hope this helps!

Regards,
Robin
Web Reference: http://www.robinashley.com
2 votes Thank Flag Link Mon May 18, 2009
The answer to your question asking how a potential buyer would verify if the sellers lender has agreed to enter into a short sale comes from the buyers agent discussing the situation with the sellers agent. Every Seller cannot go into a short sale process. There is certain critiera you have to meet and questions you have to ask.

My partner and I give out a specific package to our Seller for these answers before listing their property. If you need help call Susan Penn, EWM Realtor at 954-557-5993 or email penn.s@ewm.com
0 votes Thank Flag Link Thu Aug 27, 2009
FL-Homebuyer

If the seller is working with a realtor, that realtor has a responsibility to fully disclose the sellers position with their lender. This is why it is so important for people short selling their house to work with relators who are familiar with the short sale process. Considering the times we are in Im not sure there is a realtor out their that doesnt know short sales liek the bac k of their hand!

If I can assist you with your financing needs please dont hesitate to call. I specialize in FHA 203k and low credit score financing.

Ryan
954-394-9005
0 votes Thank Flag Link Thu Jun 25, 2009
There are DEFINITELY preemptive steps that a distressed seller can take with their lender before putting the home on the market as a short sale that will streamline the process and make the determination of acceptance process a whole lot faster once a qualified offer is on the table. I don't know if you want to necessarily call this a "bank approved" short sale, but there are steps a seller should take with their lender well before an offer comes in. If these steps are taken, the answer process from the lender or their loss mitigation handlers. will be a lot quicker. In my experience the answers come in 2-3 weeks if this is the case and there are certainly questions that need to be asked about the property before a realtor should even show you the property.

There are some tremendous opportunities for buyers out there in the short sale market. Lots of dead-ends and misinformation as well. That is why you need a realtor with a proven record of experience in dealing with short sales on both the buyer and selling end of the transaction. Please feel free to contact me at 954-778-5142 and I will be more than happy to put my experience to work for you.

Mark Doring
West Real Estate, Inc.
0 votes Thank Flag Link Wed May 20, 2009
You don't verify it before making an offer. That's why you sign an addendum allowing a contingency for 3rd party approval. Banks don't pre-approve anything. They wait until they have the ratified contract or offers and the complete request package from the sellers before they consider the request.
0 votes Thank Flag Link Mon May 18, 2009
Hi FLH,

Is the property listed with a broker/agent? If it is, ask them to verify for you. If not, call the bank directly and ask.

But I would not suggest calling the bank directly if the property is listed. There are so many problems associated with short sales. I'd much rather buy a property that has conveyable, immediate title. The banks, their employees and representatives handling short sales are often far away and completely out of touch with the reality of local prices and market conditions, not to mention the physical condition of the home in question.

I keep my buyers far away from short sales.

GOOD LUCK,

Scott Miller, Realtor®
Estate Specialist
Commercial RE
Business Broker
Realty Associates
561-716-4060 direct
561-451-9377 fax
http://www.LoveBoca.com
http://twitter.com/ScottSellsFL
0 votes Thank Flag Link Mon May 18, 2009
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