Can anyone help!

Question

Can someone please tell me the process of short sale one that I found that is not listed on MLS. Owner of property has notice of default. How can I puchase it? And can I use FHA loan?

Brett Goldsmith · Answer

The investors typically want to see the property listed on the MLS for 5 business days and a weekend. If an offer is dated within this time frame it is possible they will not review the buyers offer as they could say the property was not adequately marketed. This is a standard Fannie Mae and Freddie Mac guideline which many investors have followed suit.

Sean Brooks · Answer

Abraham,

You also need to know this just because they receive the letter of default does not mean that they can't pay the mortgage. It just means they stopped paying.

Example I know a person with at least 60k in reserve. He stopped paying on the mortgage and he applied for a short sale. The bank rejected because it's no risk involved. He has the money to continuing paying the mortgage.  Most short sales that I'm aware of go on the MLS because the bank wants to receive offers. The bank is OK with losing money but they will not sell a house worth $500k for 50k

Now I've never done a short sale as a Realtor but I work with a lot that have. Just make sure you don't focus all your attention on this transaction because you could be missing another good deal. You might want to hire an agent --- we do not get paid from the buyer but the seller pays the fee.

Elizabeth Colegrove · Answer

@Abraham Vasquez

I buy short sales all the time and I use a realtor. The bank pays their commission and I still get a great deal :). I wrote an article this past money describing the short sale process.

Kim F. · Answer

If I were you I'd just have the buyer call the bank and get the short sale requirements. They will know instantly if or how long the bank requires it to be listed in mls. Again, not a major hurdle but something to be aware of to get your offer accepted. I agree the approval process is long. A fair offer is really the most crucial element to a short sale.

Sean Brooks · Answer

Abraham

That's strange because a short sale is normally controlled by the bank (they hire a realtor) and they want as many eyes to see the property because their already taking a lost. They also want to prevent the deals with relatives and friends agreeing to do a straw purchase and then sell the property back to the original owner for less money.

Here's some information on short sales it can be a lengthy process and you have to be prepared. The bank can take forever before they even respond to the request of a short sale.

I'm not sure why it's called a short sale when it can take a year or more sometimes to close the deal.  Each bank is different too!

http://homebuying.about.com/od/shortsale/qt/Short-...

Abraham Vasquez · Answer

Thank you! How long does the owner have to try to sell market value before we can do a short sale?