I received a foreclosure call and live in Skagit County. The seller is under water and the house needs work. I talked to an agent I know who told me in WA the house has to be listed before trying to sell as a short sale. Is this typical and is this a done deal once it is on the market? What other steps must be taken? The homeowner knows the bank must be contacted to negotiate a short sale but is this something I can take care of through a letter or phone call myself? Thanks for reading and all information helps.
Yes. It's typical and required and no, it's not a done deal once it's on the market. There are many steps. I would suggest introducing the potential seller to an experienced short sale agent.
Real estate attorneys can negotiate a short sale in your behalf without a Realtor being Involved. I highly recommend talking to your attorney about it and if they don't know how then you should hire my attorney!
You should NOT attempt to work on a short sale by yourself in Washington liberal save people from themselves because they can't state. The laws could hurt you!
It's not a Washington/law thing. Banks will require the property to be listed, so they know it's exposed to open market, since they want close to FMV, and will send their own agent to do a BPO. Get an exprienced short sale agent...there are a hundred different things you can do wrong, depending on who owns the note. Without a legit POF or preapproval though, the bank won't even process your short sales package. I don't believe wholesalers who don't have the ability or intention of actually buying a property that's in foreclosure should be tying up a property for 90 days, stringing along a seller in trouble who likely won't have time to go through the short sale process a second time.
Thanks for your responses. I was basically told the same by a Realtor and haven't talked to the lawyer yet but I will try that option first. I'm not sure where the "legit POF", "not having the ability", "tying up the property for 90 days", or "stringing along a troubled seller", comments came into play but as usual Wayne thanks for your response as well. I don't know too many people that like tying up anything for 90 days buttttt...ok. I guess they do that where you're from.
@Tiffany Noble If you have the ability yourself, and the intention, of actually buying the property, then those comments don't apply to you. If you're trying to wholesale this, then they do. The short sale approval process routinely takes approximately 90 days to get an approval. Your contract won't be assignable. Attorneys are usually the worst at getting short sales done, in my experience. Much will depend on who actually owns the loan....Fannie, Freddie, FHA insured, etc. The seller of course also needs to qualify, an inability to pay, not just being under water.
I second Wayne's comments. It's bad enough you have a ticking clock but clogging it up with an attorney just makes it a perfect storm scenario for a failure.
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