How can I deal with short sale?

Asked by Lily, Brooklyn, NY Thu May 10, 2012

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Anna M Brocco, Agent, Williston Park, NY
Fri May 11, 2012
If you are the buyer oftentimes much patience is necessary, and a lot will depend on the number of liens involved, who is negotiating on the behalf of the seller, the lender, etc. If you are a seller consult with an attorney who specializes in real estate beforehand...
1 vote
Fran and Mark…, Agent, Yardley, PA
Thu May 10, 2012
First find a buyers agent experienced in short sales.
Understand that you must get the seller to agree to your offer and the seller must get the lender or lendors to agree.
Know that there is nothing SHORT about a short sale. It will take time and patience.
Most importantly we say again get good experrienced professional representation.
1 vote
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Tue Jun 12, 2012
Good morning Lily,

In general, I recommend my First Time Buyer clients avoid short sales and foreclosure (bank-owned or REO) properties. The home buying experience is challenging enough on a regular home purchase. These special category homes---short sales and REO's---bring so much extra stress and worry to the process that ultimately it's not worth it. And I've found my clients who see these things through just don't get the "deals" on price they thought they were getting. What good is all the worry and anxiety if you don't get the value you expected?

A short sale is a different kind of transaction than the normal real estate purchase. You are essentially going to wait while the Seller negotiates with their Lender(s) for approval to sell you the house at a price lower than what is owed to the Lender(s). This process can be lengthy, even stretching out to many months before you have a final answer.

You'll need two things during that time:

1. Patience. While you've submitted all your documents to your Lender for your mortgage approval, and you keep your documents current and updated, you'll grow frustrated with the lack of any communication from the Seller about the status of the short sale. This is common, both the poor communication and the Buyer's frustration. Prepare for it.

2. Maintain your credit scores. Be sure not to make any dramatic changes to your credit report that could affect your credit scores. Pay all bills on time. Don't CLOSE any accounts. Don't open any new accounts. Don't run up your outstanding balances to max your revolving debt.

Once the short sale is approved, you may find the price you offered is not acceptable to the Seller's Lender. They may come back and counter-offer your price, so you will have to reconsider at that time if you wish to pay more than your original offered price.

The three rules of real estate: Location, Location, Location.
The three rules of short sales: Patience, Patience, Patience.

I hope that helps!
Trevor Curran
NMLS #40140.
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Fri May 11, 2012
Dear Lily:

That is a very vague question which makes it hard for anyone to give you a good answer. Short sales can be very complex. If you want contact me and I will be more than happy to teach you everything you need to know in case you want to buy a home or sell a home as part of a short sale. Good luck!

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
0 votes
First Last, , 90002
Fri May 11, 2012
Very carefully! (sorry, couldn't resist)

Any agent who is dogged can help you, including the agent with the listing.

The most important thing is to realize at the outset that the sale may not go through, and if it does, it could take 9 months.

So you don't want to plan your life around moving or you could be very inconvenienced.

Karla Harby
Licensed Real Estate Salesperson
Rutenberg Realty
0 votes
Thomas Brady, Agent, Plainview, NY
Thu May 10, 2012
Broad question. Interview a few agents with the SFR designation. They are qualified in Short Sales & Forclosures and should be able to give you good advice as well as referrals to accountants and lawyers who specialize in short sales.

Tom Brady SFR, e-Pro, SRES, GREEN
Licensed Real Estate Salesperson
Notary Public, Ret. NYPD Lt.
"We treat you like family!"
Charles Rutenberg Realty, Inc.
255 Executive Plaza - Suite 104
Plainview, New York 11803

P.S. not a plug for me lol, I don't work in Brooklyn.
0 votes
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