Posts Tagged what should I expect from my short sale agent
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 Property Management, boise short sale, boise short sale expert, Can I make Money on a short sale?, CDPE, Cooperative Short Sale, Deed in Lieu of Foreclosure, FTC MARS, HAFA, How Can I Avoid Foreclosure, Idaho Loan Modifications, idaho short sale, real estate, Short Sale Approval Letter, Short Sale Failure, short sales, Short Selling Investment Property on April 11, 2012
Short Sale Fail – A Series on Questionable Things I Run Into With Short Sales: Intro
I daily run into behaviors, responses from “experts”, forms required by “experts”, etc. – things that make me scratch my head when I am working with short sales. Not always are these things that I run into worthy of an entire blog post but I figured I would create a series to at least allow for brief posts discussing/presenting these things.
This is a series that I will revisit as time permits that is good information for both Buyers and Sellers in considering the short sale process. Short Sale Fail obviously suggests that I will at the very least bring into question some of the practices, forms, designations, etc. discussed.
Please touch base if you are considering buying or selling as a short sale. 208.830.6185
*This is not to be construed as legal or financial advice and you should seek qualified council regarding any financial or legal questions.
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
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