Mortgages & Creative Financing

Tips for Navigating the Short Sale Process

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22 Articles Written
short sale process
With homeowners defaulting on their mortgages at a record pace, many people are practically begging their lenders for some form of relief or assistance in order to prevent themselves from ending up on the street. While it is certainly disconcerting to receive collection letters and threats of impending foreclosure from a lender, those who are [...] View the full article: Tips for Navigating the Short Sale Process on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

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    Terra Andersen
    Replied over 12 years ago
    Wonderful write up on Short Sales! I was actually considering one last year, but ended up going with another property. Hopefully a lot of new homebuyers know about this, because it will be a wonderful way to obtain property this year!
    Kathleen
    Replied over 12 years ago
    Good general information on short sales. But, don’t forget that many real estate investors are also skilled at negotiating short sales.
    Nadine
    Replied over 12 years ago
    Nice article about short sale…So I think the short sales could bring benefits to other real estate businessman.
    Patrick
    Replied about 12 years ago
    How do you know if you’re really getting a better deal though?
    Patrick
    Replied about 12 years ago
    How do you know if you’re really getting a better deal though? Reply Report comment
    Patrick
    Replied about 12 years ago
    How do you know if you’re really getting a better deal though? Reply Report comment
    Patrick
    Replied about 12 years ago
    How do you know if you’re really getting a better deal though?
    Anonymous
    Replied over 11 years ago
    Nice article on short sales and just wanted to add that it helps to be very, very detailed and to keep track of all correspondence/discussion with negotiators. Our short sale files get pretty extensive really, really fast.
    MJ in KC
    Replied over 11 years ago
    Very helpful article. I am a first time home buyer and I am putting an offer on my first house and it is a Short Sale. This really puts things into perspective.
    Franklin
    Replied almost 11 years ago
    I am recently divorced and got approved for a short sale even got a bid i know it will take about 3 months to get the lender to approve but what steps can i take to protect myself from any fees? And what kind of fees are there?And i am a active member of the military and a veteran can that help?
    Ed
    Replied almost 10 years ago
    Great post on short sales. I think your point about getting a real estate agent familiar with the process is probably the most important one. Its even better if they have worked with your lender before because they will have direct phone numbers that they can use to get to the underwriters processing your deal. I would also suggest that you be very tough in the negotiation process. The lenders may want you to bring money to closing or pay a zero interest debt. You should stick to your guns here and know that if the house is appraised for fair market value and you have a qualified buyer then the lender needs to take that deal or face owning the house when you foreclose.
    Susan
    Replied almost 9 years ago
    It’s amazing how back in 2006 to 2009, most realtors were not property “schooled” or educated on how to handle a short sale. It felt most were just playing the cards as they lay and tried to help home buyers and sellers go through processes very new to everyone. I think it was a heart breaking time for both buyers and sellers because the process wasn’t a guarantee and took some faith and TIME! At least things have gotten faster but are still a pain to complete.
    Anonymous
    Replied about 8 years ago
    Good Article on short sales and how they are done, if they are done the right way. Right now I’m going thru a nightmare ordeal with a short sale, my credit has dropped 200 points in less than 4 months from start of short sale and i found out the property started a foreclosure proceeding on the property 3 months after default and during the short sale process , now is going to be foreclosed in May2012? Meanwhile i hear of people who stay in their houses 6 or more yrs until the actual foreclosure. I also heard of people renting out their places during foreclosure. I’m trying to do everything the right way and ive been in process of doing this short sale from the beginning.? last November?2011. Buyers and Sellers be aware that alot of people dont know what they are doing with Short Sales. Beware of realtors and attorneys who say they know short sales and do your research. In this city, it seems no one knows how to do one right, and properties go directly into foreclosures and now I know why. My property has been on the market 4yrs with no written offers with a regular sale, dropped the price 110,000 from org. price i paid for it. Appraisal went down$50,000 from the year i bought it. The contract to sign for a short sale was insane and was an anniliation leaving me with all expenses + extra costs, that even a regular sale would not have and was faxed to the bank without my confirmation or any addendums that i requested..and I never saw the HUD statement which was sent to the bank. I called the bank myself to find out what is going on..and found out about the foreclosure and their has been no contact from my attorney to bank in weeks since march 5th. nor to me as well, with no returned calls and bounced emails,. .. meanwhile ive heard of short sales that were so easy and done so easily and their credit started to return 1 year later. It all depends on the attorney, real est person, bank and the state you live in, thats part of it…but be aware of the people who say they know how to do one, as far as seller you can get really messed up and as far as buyer the same thing . Make sure that they know what they are doing and are professionals at it, because as far as i am concerned it has nearly destroyed me, and its not over yet. 200 points in a drop in credit is crazy, and, its not even finished with the short sale if it ever finishes. I had impeccible credit until this happened. So many people have walked from their houses and didnt look back and didnt care and some even rented out their houses and made money out of the deal..i even heard of one where he had a short sale and attorney asked him if he wanted to rent it during the short sale process. his credit returned in 1 yr. If your thinking of doing a short sale whether buyer or seller, do alot of research on it first..and approach it with extreme caution.,
    Todd Scott
    Replied about 7 years ago
    I think it’s very important for anyone considering a short sale to interview multiple realitors. And definetly check their references and the number of short sales they have been involved in. Also make sure they have done a short sale withing three months… the bank requirements and “accepted practices” change rapidly.
    adam
    Replied almost 7 years ago
    At what point does Bank of America/ Equator require the Buyer’s Date of Birth and Social Security# on one of their shortsale properties??? Is this customary ??