Mike’s Real Estate Show

The scenario as I understand it, is you have a second TD which is taking the hit and the first which is not. So the first doesn’t really come into the picture as they will just be “cashed” out when the sale goes through. However, you may wish to make sure you have a realistic price for your marketplace. The way things are going you could get into the frist real quick!

You have not told us where your property is located so the 5 months on the market indicates to me you are overpriced and should set a very realitistic price as the approved “short-sale” might not be reflective of current market conditions. Your Realtor/Licensee should be gathering all offers and then having you sign and accept one “primary” offer with the others as back-up and submit these to the lender. Here in Sonoma County, greatest state of California, we had 200 sales in our MLS with 65% being post-foreclosure transactions or REO (bank owned properties). Short-Sales are averaging around 20-25% closing ratios with some agents claiming a much higher number. It’s all in the preparation before you get the sale. Submitting a very thorough market analysis plus “Hardship” package to the lender is critical. Waiting to get an offer and then submiting these to all lenders effected is folley and indicative of a Realtor/Licensee who is not adept at Short-Sales.
Remember, the bigger price you get with the least amount of exposure for the lender will result in a more acceptable position for the lender. You may go up to closing thinking everything is peachy-keen and then go to sign your papers and find a $50,000 unsecured note which the lender wants YOU to sign to do the deal!! So don’t let your agent be lazy and just take only ONE offer. Encourage back-ups, the bigger the payday for the lender (or the less “hit” they take to their Loan) will hopefully eliminate this “surprise” unsecured note. I have a web site which explains the process: www.SonomaCountyShortSales.com Check it out.