Archive for category Boise Investment Property
Posted by BoiseShortSale in Alternatives to Foreclosure, Boise Investment Property, boise short sale, boise short sale expert, How Can I Avoid Foreclosure, Idaho Loan Modifications, idaho short sale, real estate, Short Sale Approval Letter, short sales, Short Selling Investment Property on September 23, 2011
As I reflect back on a week that we have closed a couple more properties and helped a few more home owners avoid foreclosure I continue thinking about a number of discussions with another listing agent and a short sale seller that are not working with me but have kept in contact with me for a few months with occasional short sale related questions, etc. The recent conversations included questions along the lines of “What would you do if this happened?” “Have you ever seen this happen?” “How do I fix this?” – in general what do I do about this short sale that has turned into a train wreck?” In discussions it became apparent that either the Seller was not provided the Short Sale Approval Letter prior to closing or they did not read through it until the day of closing. In each situation it nearly blew the short sale up which likely would have landed the properties in foreclosure.
The letters in question included terms allowing the lender to seek a deficiency judgment (which is a pretty big deal). Trying to sort things out to determine where the train jumped the tracks wasn’t something that could be determined but I did emphasize to the agent that should they do another short sale in the future it is probably a good idea to read through the letter to know what it is saying and to also provide the approval letter to the client well in advance of putting all parties in motion to closing and give the Seller the opportunity to review and approve of the terms of the letter.
In working with our Short Sale Sellers we provide to them a copy of the approval letter prior to releasing it to the buyers agent. Our Seller’s have the opportunity to review the letters and seek legal and/or financial advice (neither which we can provide) should that be important to them prior to approving of the short sale approval letter. If all looks good to our Sellers we have them sign the approval letter itself and a few documents as well that instruct us to put all parties in motion to closing – again – before releasing the approval letter to the buyer agent.
As a short sale seller client of ours you can be assured that you will have the opportunity to review your short sale approval letter(s) as we receive them so that you are on board with the terms. Our goal is to make the process as transparent as we possibly can while helping your reach the most beneficial outcome. We’re not into train wrecks…
We received a nice note of thank this past week from a client that we helped short sell a house, get the bank to release deficiency rights, and avoid foreclosure in July that I thought I would share with you. My goal is to help every one of my clients have such a positive outcome and avoid a train wreck that short sales can become with the wrong agent at the wheel.
I don’t think I every thanked you for doing such a great job with the Short Sale of my property. The entire process was smooth, painless and most of all transparent. I wish to tell all potential clients that I would most certainly do business again with you if the opportunity presented itself.
San Francisco, California
Lately most of the folks that are selling are upside down in their properties and need to do a short sale. Many of these sellers purchased rental properties and have landed themselves with a property worth 50% of its value during the boom. Times are tough and whatever the hardship maybe they need to cut loose of these rental properties that are dragging them down and avoid a foreclosure.
As we work with owners of rental property we also involve their property management company in gaining access and cooperation of the tenants to get the house sold and avoid foreclosure. The way that a lease agreement and management agreement are structured initially are very important items for a seller to consider looking to the future when they intend to sell the property.
Recently we are finding that a few property management companies have created leases that do not allow a property to be shown as is generally customary with 24-48 hours notice given to the tenants. Most recently one of the management companies that drew up a lease like this had no real explanation for why the lease was drawn up this way but they were adamant that even though the property owner is just a few months away from a foreclosure auction there is nothing that could be done to change the inability to have the house shown. The central flavor of the conversation being bitter because the management company was losing a property that they manage (monthly income).
As this whole conversation is taking place I am thinking in the back of my mind how much differently the person on the other end of the line at the management company would be feeling if they were in their clients shoes – staring down the barrel of a foreclosure.
In light of running into this situation a bit more as of late if you are talking to a management company to handle your investment properties and draw up the leases for you one important question to ask of the management company might be “Explain to me the process when I am ready to sell the house whether a tenant is in the house at the time or not.”
Make sure you are not painting yourself into a corner.
Hopefully when you sell you are in a positive equity situation on the property and not staring down a foreclosure with a management/lease agreement that has your hands tied keeping you from being able to actively market and sell your property.