Is there such a thing as a smooth short sale?

Question

Has anyone had an easy time doing short sale?

David Beard · Answer

Great info from J Scott.  The only addition I'd have is to make sure that the listing agent or selling agent meets the agent performing the BPO at the property, and does everything reasonably possible to get the BPO agent to provide a low value.  Highlight all negatives about the house and neighborhood, have supporting low comps available to provide, and stress how much this selling family needs to get this behind them and rebuild their lives.....

Donna Smolinski · Answer

i've had very good and very bad experiences with Short Sales.  Just remember if there are two loans with different lienholders, the challenge will be MUCH greater.  If it's only one loan or two loans with the same lender, it will go much easier.

Also, you may want to ask what the seller's hardship is.  If they have alot of savings or no true financial hardship, it's going to be alot tougher to get it approved.  Sometimes in these cases, the bank will approve the SS, but they may want the seller to put in some funds (seller usually refuses to do so).  I never tie myself up in a SS without having some understanding of the seller's financial situation.

Good luck.... hope it goes smooth!

James Roberson · Answer

I'm looking at a property (a real gem) for my personal residence so I'm willing to wait it out. I have tons of questions about my area. There are houses in this area that are clearly vacant but not up for sale. I mean they have a lock box on them and someone maintains the lawn but not on any list. How do I find out about those properties and get my hands on them?

J Scott · Answer

Certainly have.  And then in other cases, certainly not.

There are a couple keys to a smooth short sale in my experience:

- Luck.  Some transactions are just easier than others.

- Motivated bank.  Some banks are faster than others.  Small banks tend to be faster than the big banks.  Certain big banks are faster than others (BoA is surprisingly fast these days).

- Motivated seller.  If the seller is quick to provide information, respond to queries and is proactive about getting their house sold, that helps tremendously.

- Good listing agent and/or negotiator.  You need an agent who stays on top of the process, stays on top of the seller and stays on top of the negotiator/bank.  A good listing agent gets the draft HUD put together quickly, gets the package to the bank immediately and makes sure that the bank has everything they need to ensure the process is moving along smoothly.

- Good offer.  When you make a low offer, you're less likely to get a quick acceptance (or any acceptance).  In fact, I had one house just this week where I made an offer several months ago that was low, but fair (the house needs a LOT of work and my offer was likely what it will sell for if it gets foreclosed and listed as an REO); the seller didn't hear anything for 3 months after submitting my offer, so he called the bank.  The bank responded with, "Oh, we didn't take that offer seriously...we just ignored it."  He would have gotten foreclosed upon before hearing anything from the bank had he not followed up.

Is there such a thing as a smooth short sale?

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