Alpharetta Cumming Lake Lanier Real Estate Blog: Short Sales An Opportunity or a Disappointment

(Short Sales continued from yesterdays blog)

Mortgage Amounts, Number of Loans and Lenders

Ask your buyers agent to research how much is owed against the home and find out the number of loans that are recorded. A second or third mortgage lender will receive peanuts as compared to the amount a senior lender in first position will get.

Moreover, some lenders, deserving or not, get a reputation for being difficult to work with. If your agent is an experienced short sale agent, as we are, he or she will know who these lenders are and can advise you of the difficulty you may encounter.

If your offer is 50% of the mortgaged amount, it is unlikely that your offer will see the light of day on the negotiator's desk.


Short Sale Listing Agent's Track Record

A listing agent who is advertising a short sale but has never closed a short sale is a risky proposition for you. That's because it's up to the listing agent to submit the short sale package to the lender and negotiate. Your buyer's agent can't talk to the bank. So it is really important that you make sure your buyers agent has the understanding to ask the right questions of the listing agent.

Some listing agents hire outside companies to do their job, and the results of those negotiations are sketchy at best. Ask yourself, do you want to risk rejection of your short sale purchase because the listing agent has no experience?


Short Sale Seller Qualifications

Your buyers agent also needs to find out if the listing agent has received a completed short sale package from the seller. A complete short sale package consists, at minimum, of the following:


•Sellers' hardship letter
•Tax returns
•W-2s
•Payroll stubs
•Financial statement
•Bank statements
Some sellers do not want to cooperate and are slow to return these documents. Others have never been told by their agent that these documents are mandatory. You don't want your short sale purchase delayed because the listing agent doesn't have the required documents.

More information to follow in tomorrows blog.

If you just can't wait give Mike or Melody a call. They are always available to help.

Labels: alpharetta homes for sale, cumming homes for sale, foreclosures, johns creek homes for sale, milton homes for sale, short sales