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10055 : Real Estate Advice

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Activity 1
Sat May 9, 2015
thinz answered:
This questions is good to answer even today in 2015 as thee process with lenders is always evolving...
First step is to check to be sure you are not on a sheriff's calendar for a foreclosure sale. Many times within a year of being in pre-foreclosure, dates are not set...But you need to check since it is not clear how far behind you are in payments.
If not date is set, reach out to a "exceptional" listing agent that understands the process...tip - many say they do but are not as good as you don't be afraid to ask tough questions!
Let the agent know your outstanding balance and give you comps for recent sales to see how your listing price needs to be adjusted for establishing MLS history from the date you start listing. The reason is you may need to show a trail of list prices that did not generate activity - this is useful to me in negotiations as I prove to the lender the home is not worth what they claim the "over inflated" bpo value may be.

After listing with your agent, ask he/she about doing an agent open house to generate buzz and exposure...Prepare to lower the price if offers are not coming in within a couple of weeks...your agent and specialist together should strategize on the timing of reducing the price to get into the sweet spot of generating AS IS offers.

Once you get an offer, most important is for the agent to qualify the buyer to make sure they understand that the lender may counteroffer and they will need to come up in price. In other words, if the buyer gives their highest and best price out of the gate, that is a red flag and in my opinion, not worth tying up the property with waiting for the lender to complete the review. The right buyer is very important.

If you are not making payments to the lender, then I always recommend that sellers save as much cash as possible each month after expenses to build up a buffer if the lender requires some cash at closing as a condition of the approval. May not be needed, but it could also help with moving expenses down the road.

Finally, make sure you are updated weekly by your short sale team (agent or specialist) on the status regardless if there are changes or not. Communications helps to quiet your nerves as you go through the process. Equally important to update the buyer side to not risk losing the buyer!
Good luck and reach out if you have other questions. Tom Hinz
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