“Short-Sales” are now the bane of many a Realtor and Buyer’s existence! As they begin to “become” a major part of the real estate landscape we are being forced to deal with the frustrating process of dealing with the dreaded “Loss Mitigation Deparment” of many a lender.
The best way to handle a “Short-Sale” is to have a conference call with ALL parties at the beginning and setting expectations of how the transaction will be handed and what the probable outcome will be. This gets everyone on the same playing field.
I find it essential to also have a completed “Hardship file” from the Seller for the lender with all their requested information. I put it in pdf file which resides on my computer’s desktop. Why? The loss mitigation department’s seem to have a contest to see who can loose these the most times!! The best way to approach a “Short-Sale” is to have this completed prior to talking with the lender. And contrary to popular belief, Lender are talking “Pre-Foreclosure”!
At a recent “Broker/Managers” meeting I was amazed at how many “Short-Sales” are being accomplished “Pre- Notice of Default”. The old (relative term here) adage that you need to be in NOD or quit making payments is giving way to the realities that these homes are way overvalued and no manner of loan “restructuring” is going to help a homeowner who owes $100,000 to $200,000 over the current market value for their home!
But don’t be too hard on your Realtor/Agent as we have absolutely no control other than to advise you NOT to buy a “short-sale” but as we all are discoverng, “Short-sale” numbers are becoming “the market” in some areas. I agree with other Realtors who see them as a total waste of time but when they become the lay of the land you can either start working with other buyers or have a strategy going in!
Don’t forget to talk to your lender prior to ruining your credit. Start the process now!! For good information on the whole “Short-Sale” foreclosure process go to: www.SonomaCountyshortsales.com .
