Broker Bryant,
I have never purchased a home on Short Sale thus I am unfamilar with the term, does it mean they will entertain offers? Does a Short Sale mean it might be foreclosed on?
Thanks,
Mr. Needer Know
Hi Needer,
When purchasing a Short Sale the negotiations are between the Buyer and the Seller. Once price and terms are agreed a contract is signed by both parties and the property goes into pending status. A part of the purchase agreement is an addendum stating that the purchase is contingent (subject to) the Seller's Lender agreeing to accept less money (short) than what is owed them.
Getting the Lender to agree to accept less is a process that can take 2 weeks or 2 months. Basically we have to submit the contract for the property and the Seller's financial information to the Lender and make a case of why it is better for them to accept the Short Sale than it is to foreclose on the property.
From the Buyer's perspective the biggest drawback is the uncertainty. You cannot be sure the property is yours until the Seller's Lender makes a decision. Their decision can be:
- NO
- YES
- We want more money
However, because of this uncertainty the property is normally priced to reflect a "negative property condition". This negative condition is the time required and the uncertainty involved. It puts a limit on the amount of Buyers that are interested and who are willing to have patience while the Seller goes through the process. This makes it a good buying opportunity for a patient Buyer.
Does this help?
CENTRAL FLORIDA REAL ESTATE SHORT SALE INFORMATION
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MORE INFO FROM BROKER BRYANT... THE SOURCE FOR CENTRAL FLORIDA REAL ESTATE
Tutas Towne Realty has already successfully negotiated Short Sales with the following Lenders and Investors.
Chase Short Sale,Sun Trust Short Sale, GMAC Short Sale, Wells Fargo Short Sale,Bank of America Short Sale,USA Bank Short Sale,PNC Bank Short Sale,Citi Short Sale,HomeEq Short Sale,Fifth Third Bank Short Sale,ING Direct Short Sale,GreenTree Short Sale,Capital One Short Sale,ASC Short Sale,First Horizon Short Sale,E-Trade Short Sale,Transland Financial Short Sale,US Bank Short Sale,IBM LBPS Short Sale,
Nationstar Short Sale,BAC Florida Short Sale,Real Time Solutions Short Sale,Fannie Mae Short Sale
FHA Short Sale,Selene Finance Short Sale,DTA Solutions LLC Short sale,Flagstar Short Sale,IndyMac Short Sale
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Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales, Orlando Florida Short Sales, Celebration Florida Short Sales, Winderemere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.
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Hi Broker Bryant.....from Broker Banana! Short and sweet explanation of short sales. And I did look at the house and found it intereting that you have a pool that is fenced in like that. Is that the norm there? Why? Bug?
Hi Broker Bryant! Wow! that was a great, basic explanation! But you forgot to answer the question, is the property going to be foreclosed on? And the answer is maybe, as you know! Also, out here, two months would be considered a very quick response time! There have been times I have waited 5 months!!
I know the feeling the wait everyone has to be patient-I am working on a short sales it has been 2 months nothing from the bank still waiting.
Hi BB - Good adivce to Mr. Needer. You have clearly areticulated the process. Wouldn't it be nice if was as simple from the agent's point of view? Just got a short sale approval on Friday and I was ready to break out the champagne and confetti. It's a win-win-win situation. It sure feels good when you know that you're making a seller happy and buyers are getting a great buy and the bank is saving the expense of having to do a foreclosure.
Make sure to tell Mr. Needer that 2 months is just an average time. I've had some take as long as 6 months to get an approval. We had a short sale seminar at ORRA last week and one person was saying the bank still hadn't made a decision on an offer she submitted back in September. They should call them "long" sales.
Hi BB - Good and clear explanation. Just one difference in our Sacramento area MLS. A just listed short sale is listed as Active Short Sale. Once the seller accepts the offer and sends it to the lender for approval, the listing is changed to Active Short Sale Contingent, and if the bank approves it, the listing is then changed to Pending when it goes into escrow and when the only things that can stop it from closing at that point are the same things as for any regular transaction - buyer default, etc.
Bryant- good and simple. We have an addendum that our attorney drew up for our sellers because our board addendum is crap. ( for the seller). We also will put the property Contingent but never pending until all contingencies have been met from the buyer, home inspection, mortgage approval and a clear to close these days! Don't trust the buyers mortgage brokers anymore down here.
Bryant - Short and Sweet email reply. Short sales are just coming into Manhattan New York Real Estate market. I am the kid with the new toy (short sale listings) in town, so I face this type of questions from the buyers and the buyers' agents all day long. I have my standard answers and FAQ ready to be copy and paste into new emails...!
Broker B, that list of sellers' options really does a great job of summing it up!
BB - Yep, the key is patience, and understanding how the process can work (but realizing it may NOT work ta=hat way).
Jeff
I wish they all were under 2 months. If you have been getting them done that quick hats off to you. I have 100% approval rate but none of them has been under 4 months.
Broker Bryant,
I've been waiting so long for approval on some of my short sales I was thinking I might have to will the commissions to my kids :)
Regards,
BB, I just noticed TLW now has a bull whip, isn't the 12 gage much more effective when dealing with short sales?
Have you seen Laurie Mindnicht's post about a short sale-turned-repo, and her question about who the procuring cause is? It's right up your alley. In case you want to check it out....
Heeeeeeelloooooooooooooooo everyone!
Ok the best name of the year award goes to Anna Banana. I LOVE it!!!
My last 4 short sales all took less than 60 days. I'm not sure if I'm lucky or..........lucky. What ever it is I'll take it. I'm closing one on Friday with Wells fargo that I listed March 1st. They certainly seem to be getting easier.
Thanks for stopping by.
Hi BB, Short and sweet, just what people want to know.... Wells Fargo, that fast? Awesome!