BiggerPockets

Hi, short sale experts. As I have been extensively studying short sales for about a month now there are a few questions that I have yet to find the answer for. When should I begin marketing my short sale property? Can I market it before the bank approves my offer? Can I put it on the MLS? Thanks!

I usually get it marketed on the MLS as fast as my agent can post it up. The sooner I have an end buyer, the greater the feeling I know I'm going to make money on the deal.

The way I understand the situation is this: If the Seller signs and gives the Buyer written permission to market and sell the property than you can.

But: I do not buy or sell properties on the MLS.

I would love to see what others with whom use the MLS have to say.

Nick, does the listing affect your negotiation with the lender? How can you have a house sold without the agreement from the bank? Do you run into a lot of problems with conventional financing?

Thanks

Originally posted by motiv8td

I've had a few times where the BPO noticed it was listed for a higher price and turned that into the lender as their opinion, yes,that was lazy of them to do but whatever, you gotta roll with it sometimes.

Hi!
I've heard that some savvy short sale investors would wait to have the lender's approval before they list on the MLS because the BPO will be influenced by the listing price. The idea behind it is that the BPO thinks that if the lising agent is listing the property at certain price, then that must be the price the agent chose based on comps and what is selling right now.
Plus on the other hand, if you have a buyer waiting for 2 to 3 months while you try to get your low balls accepted will make it hard to have the buyer stick around even if they gave you EM for 120 days, after that time has passed they will walk away and you will start finding another buyer again.
What do you think?

very true my man! It has been hard to have a split personality LOL.. Realtor/investor... :)

Hey... should I create an LLC to submit my offer to the bank or just in my name. I am wondering as I have the listing as well, what is the best way to set up the whole thing and for the future. What do you suggest?

oh.. and thanks for your time!

We list with an agent and have them drop the price down 5% every week till we get offers coming in. Its also important for your to be the contact person when the BPO agent comes out to check out the place. Influence the BPO any way you can. Ex. Have an estimate of repairs from a licenesed contractor to give to the BPO agent, most the time these BPO agents just drive-by so try to give them the big picture. Also if the lender gives yo ua problem with BPO values, let them know that the price is retail price and not distress. Most all BPO agents are lazy and use CMA to come up with a value which doesn't really reflect your personal situation... I say list right away as soon as you have recorded and notice of Contract and Affadavit. Hope this helps

We have it marketed from day 1 for the A-B on the MLS. Depending on the bank, we'll normally cancel the A-B listing from the MLS and Relist the home on B-C through a different broker after the BPO has been done. Unlike what the "guru's" teach, we use different agents/brokers for every side of the transaction so there won't be any issues that arise about "fiduciary responsibility" in the future if the short selling sellers decide to get lawsuit happy in the future.

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