Does the listing agent know in advance what the bank will accept on short sale. In Las Vegas Nv. Lender is Wells Fargo.

Asked by Kurtis, Las Vegas, NV Thu Sep 29, 2011

The Listing Agent went ahead and open escrow with out me making a EMD ,The agent told my agents that she did not want any surprise, and we would be ready to close escrow in 20 days after the approver .

Help the community by answering this question:

+ web reference
Web reference:

Answers

14
John Brassner, Agent, Las Vegas, NV
Thu Sep 29, 2011
There is a class of short sales known as "HAFA preapproved" where a price is predetermined by the bank. But for the vast majority of short sales, no.
Web Reference:  http://www.HouseOfVegas.com
1 vote
Wendi Willia…, Agent, Las Vegas, NV
Tue Nov 27, 2012
Hi, Kurtis.

Las Vegas Short Sales

Short Sales are probably the most dynamic component of the Las Vegas real estate market. First of all, there is nothing “short” about them and it’s a bit of mystery of how or why that term came about. There are real benefits to these types of distressed property sales. See the “benefits” link at the bottom of this page for more info.

What are they?

In summary, a short sale means that the bank is taking a loss on a mortgage to get rid of an asset. For example if Johnny owes $100k on a house and finds a buyer willing to purchase it for $70k, Johnny is asking the lender to take a $30k haircut. This is where you step in and can make money, if you do it right.

Here is a bit of information about short sales if you're still looking:

http://lvpropertysearch.com/las-vegas-investment-homes/las-v…

Meanwhile, if you're still searching for properties, feel free to utilize our FREE MLS Integrated Webpage to view ALL current and available listings in the Las Vegas Metropolitan Area:

http://lvpropertysearch.com/single-family.html

If you need help sorting it all out, we have a very successful closing rate.

Advice courtesy of:
Limestone Investments, LLC. - REALTORS®
LV Property Search
Info@LVPropertySearch.com
(702) 619-6214
0 votes
Cindy Grimal…, Agent, Las Vegas, NV
Sat Oct 8, 2011
Hi Kurtis
The listing agent should have run comps and have a good argument ready for the Short Sale Negotiator to show the current market value.
Cood Luck!
0 votes
, ,
Wed Oct 5, 2011
HAFA short sales can provide a pre-approved sales price before listing the property, showing the bank's bottom line, or their net. Eligibility requirements must be met, including owner occupancy, HAMP participation (loan mod trial), and full release from the 1st mortgage. The rest of your question, well, sounds like you have a mess on your hands.
0 votes
Penny OBrien, Agent, Las Vegas, NV
Fri Sep 30, 2011
Hello Kurtis,
I WISH WE KNEW.. Penny O'Brien with Simply Vegas RE. Penny@PennysProperties.com
0 votes
Jimmy Balsano, Agent, Las Vegas, NV
Fri Sep 30, 2011
Unless there was a previous short sale approval from the lender and the buyer decided to walk away from the deal is the only to know what the lender will accept on a short sale, Most agents can run comps or like myself approved to do BPO (Broker Price Opinion) can give you fairly good idea what the lender will accept,.

Some agents don't like like to take EMD money on short sale until it has been approved, This is because time the lenders have taken in the past to approve short sales (90 days to 2 years) they are geting better about approving short sales and the with new Nevada las starting Oct 1st requring them to give you
a answer within 90 days.

If I can be of any assistance please email me or call me.




Thanks
Jimmy Balsano
Realty One Group
702-281-2225
Fax 1-866-371-8421
I KNOW LAS VEGAS AND HAVE FOR 40 YEARS

http://www.rapidsellers.com/jbalsano
http://www.salestraq.com/las_vegas/newhomesearch/index.cfm?id=4780(New Homes)
0 votes
Annette Law…, Agent, Palm Harbor, FL
Thu Sep 29, 2011
As David pointed out and FL MLS data support, less the 30% of listed short sales are purchased by a resident homeowner.

A real estate professional who has successfully closed a number of short sales with a few different banks will have a feel for what the end game will be. This is based on experience. It is well noted by the comments below that short sales are the "Wild, Wild, West" of real estate. The illusion of rules and predictability result in an 'anything goes' environment.

Added to the anarchy of the short sale institution is the personality of the buyer creating a real circus. It is critical the buyer understand the short sale process, how very little influence the buyer exerts, must be extremely patient, flexible and ready to respond on short notice. And, in many cases, be willing to invest their money into an situation with an uncertain outcome. If this doesn't describe you, it also does not describe most of those who attempt a short sale purchase.

Because so much of what takes place in short sales is secreted behind the closed curtains at the bank, the service company and investor, there is an incredible amount of trust required between you and the professional representing you. Everyone advised you that bank owned or traditional sales are the best route to take. You chose to make an offer on a short sale. You will come to realize....what you have read is true. If your agent is a real pro...they will make it look much easier than it is. You will need to invest some trust in your agent. If you close on a short sale, it will be close to a miracle. I believe in miracles.

Best of success in the purchase of your new home.
0 votes
Dan Leonard, Agent, Tucson, AZ
Thu Sep 29, 2011
No, however, a good local agent can and should market the home at a price very close to what the bank is likely to accept. This is accomplished by an agent doing there homework first and being experienced or willing to get experineced in short sales. This assumes that the agent is well educated and knowledgeable in that area where they would be listing the short sale.
On a related note, short sale typically fail because the agent handling the listing fails thier client and themselves. Short sales are diffuicult and should not be taken on by an uncommitted agent or one that feels they are too busy to handle the demands of a short sale. I have a 100% sucess rate for short sales in the Tucson Arizona area since 2007.
0 votes
David Cooper, Agent, Los Angeles, CA
Thu Sep 29, 2011
Banks change their philoophy on what they do with short sales almost daily. There is nothing set in stone. That's why only 20% of all short sales actually close.


David Cooper Foreclosure Specialist at Sinve 1917 Realty Las Vegas. 35 Years Investing Experience. Receive a FREE List of Low Priced, Bargain Homes in Good Areas. Cash Flow .10.0%+ CAP RATE.
Go To http://www.lasvegaswinner.org or Call +1-702-499-7037
Web Reference:  http://www.lsvegaswinner.org
0 votes
John Brassner, Agent, Las Vegas, NV
Thu Sep 29, 2011
I must jump back in based on a comment below. It isn't the responsibility of a lisitng agent to get the best deal for the bank on a short sale. They don't represent the bank. It is their job to get the best deal for the client--the home owner in this case.
Web Reference:  http://www.HouseOfVegas.com
0 votes
John is correct. Add to that is that the buyer agent's job is not to get you the buyer the lowest price for the house but only to present your offer to the current owner. If the owner accepts your offer, it goes to the bank and the bank has approval rights. If the bank approves your offer, you enter into escrow.

A buyer agent can't negotiate anything unless you specifically direct them to do so. Now for something you might not like to hear but a buyer agent represents the buyer's process of buying, not the buyer. If as every agent will say, the buyer agent is paid commission by the seller agent or seller, someone explain how there is no conflict of interest and please, don't say ethics takes care of it. If it were ethics then we could all have lawyers paid for by the opposing counsel and we'd all be very happy.
Flag Wed Nov 28, 2012
Alana Damesw…, Agent, Las Vegas, NV
Thu Sep 29, 2011
If the listing agent did know (which more than likely he/she does not) they would use that in negotiations with the buyers agent. It is the listing agents job to get the bank the most money possible for the short sale. Telling the buyers agent would mean that the buyer wouldn't bid over that price, thus the listing agent would not have the banks best interest in mind. As a buyer, your agents job is to get you the best possible price on the home you choose. Even if your agent knows the max amount that you were approved for, he/she would not tell the listing agent because they wouldnt accept any offer lower than that. Because your agent has YOUR best interest in mind, he/she would not do that, so neither would the other side. Hope this helps.

Alana Damesworth
Coldwell Banker Wardley
(702)742-5103
http://www.LasVegasRealEstatebyAlana.com
0 votes
Rick Ream, , Las Vegas, NV
Thu Sep 29, 2011
Hi Kurtis,

The listing agent does not usually know what the bank will accept.
I some cases, the listing agent may have a pre-approved number; where an offer was previously submitted, but later fell out when the buyer walked away.
The process continued and the lender approved the sale, now the agent just needs to substitute a ‘new’ buyer into the deal, or start all over.
But, I have also seen that approved sale price change, as the market changes.
As far as wanting to move quickly after the bank acceptance, that seems to be the norm…
The banks can make everyone wait weeks to hear anything, and then want a response back in what seems like ‘minutes’.

Thanks for reading

Rick Ream - Realtor ®
Coldwell Banker, Wardley Real Estate
7670 W. Lake Mead Blvd #100
Las Vegas, NV 89128
702-528-5207
RickReam1@GMail.com
http://WWW.CBWardley.com/RickReam
0 votes
Suzie Marqua…, Agent, Las Vegas, NV
Thu Sep 29, 2011
Kurtis
Thank You for the question. There is really no way to to know for sure what the bank will accept on a short sale. I use the same calculator that the bank uses and I can submitt with the offer the numbers when we get an offer on a listing. An example would be that I can show the bank the comparison on what their net will be on a short sale compared to going through the foreclosue process. Lets say for example the bank will receive .54 cents on the dollar at short sale compared to a net of .47 cents on the dollar at foreclosure. We can show the bank that our offer is a better deal. A clean offer also helps. Most agents know what the bank won't pay. Sending a complete short sale package initially is a must. Also when the bank or investor needs updated information responding quickly will help keep the momentum of the file moving forward. When an agent opens escrow they are getting a Preliminary Title report done so that you will know if there are any liens,judgements and how many loans are associated with the property. You want to know that ASAP. I hope my answer will help.
Thank You
Suzie Marquardt
702-234-7653
Fahrnyteam@yahoo.com
0 votes
Ron Thomas, Agent, Fresno, CA
Thu Sep 29, 2011
It is possible that they had a previous offer and so the Listing Agent knew the tollerance:
Normally, the Bank doesn't tell us anything.
We can look up or ask the Seller how much they owe, and we can do a battery of CMA's, but we never really KNOW.

It sounds like you are Okay.

Good luck and may God bless
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more