Posts Tagged Can I make money on a short sale
Posted by BoiseShortSale in Alternatives to Foreclosure, boise short sale, boise short sale expert, Can I make Money on a short sale?, CDPE, Cooperative Short Sale, FTC MARS, HAFA, How Can I Avoid Foreclosure, idaho short sale, real estate, Short Sale Approval Letter, Short Sale Failure, short sales on April 16, 2012
Short Sale Fail – A Series on Questionable Things I Run Into With Short Sales: CDPE Disclosure
When working with buyers I often run into listing agents forcing the use of forms that leave me wondering how many short sales they have completed and the level of service that they provide to their clients. For instance I was showing a house this past week and the agent included the below form as a document to be included in a contract. It is a CDPE form (Certified Distressed Property Expert – in my opinion little more than a “I paid $500 to get a designation for my business card club”). CDPE has their trained agents using the below form that has more than 1 questionable item on it. For this post I would like to focus on Item #2.
Item 2 States the following. “The seller will receive no cash from this transaction (unless it is a HAFA short sale). Any funds usually due to the seller will be paid to the lender.
This is inaccurate Click HERE to look at at one of my more recent posts below. I have been able to obtain cash for sellers on more than just HAFA short sales and have the approval letters to reflect it. If your agent is using this form do they know that they MAY be able to negotiate a Seller Incentive paid to you upon closing?
As a Seller you need to know you have a competent agent working for you. You are not guaranteed to recover any money from a short sale as a seller but if you could why wouldn’t you want help with moving expenses, rent at your new place, etc.?
If you as a buyer see a form that has this specific wording on it included in your contract it may be an indicator of the possible rodeo you are about to be a part of. To me it suggests at least a lack of knowledge of the party bringing it to the table.
Call me if you are considering buying or selling a short sale . 208.830.6185
Posted by BoiseShortSale in Alternatives to Foreclosure, boise short sale, boise short sale expert, Can I make Money on a short sale?, CDPE, Cooperative Short Sale, HAFA, How Can I Avoid Foreclosure, idaho short sale, real estate, Short Sale Approval Letter, Short Sale Failure, short sales on April 7, 2012
I recently closed a short sale where my Seller client received $13,000 at closing as a Short Sale Relocation/Seller Incentive and was also released from any further liability for the deficiency. It is possible. See the approval letter below.
Does this happen all the time? No.
When Sellers do receive compensation at closing it is generally between $750-$3,000. The situation where the clients received the $13,000 was from a Servicer (Bank) that does offer substantial compensation on some of the loans they service for completion of a short sale. Depending on the specific situation and the specifics of your loan(s) you too may be able to be paid to complete a short sale. Not all short sale sellers and loans will qualify for cash compensation at closing but it happens often enough that you want to have an agent that knows how to get that compensation for you if it is available. Read my next post to see that some “expert” short sale agents with “fancy designations” think that a seller can’t be paid at closing (I will include examples of their published forms that reflect this).
Drop me a line if you are considering selling your house. 208.830.6185