Had to Share this One

Everyone knows that I have been working with Home Buyers and Home Sellers in Santa Cruz County on Short Sales for the last 4 years.

Am I an expert? No.

Do I know more that some others who claim to be experts? YES.

Do I know something about making Short Sales work and close that others do not? No.

Have I closed over 95% of every Short Sale I have been involved with? YES.

Do we learn something new about new about Short Sales every single day? YES.

I had to share this article, as it covers, and answers many of the questions that arise during a Short Sale Transaction.


WASHINGTON (MarketWatch) Question: A bank in Ft. Lauderdale has the final say on the sale of a house my daughter wants to purchase. The Realtor sold my daughter on making an offer on this townhouse, which is owned by someone who owes more than the place is worth. The day on which she was promised an answer has come and gone, but she has heard nothing from the bank. When she questioned it, she was told she is at the bank's mercy and she would receive an answer whenever the bank got around to it. The sale is scheduled to close soon, but still no word.
On several occasions, the listing agent has advised my daughter's agent that my daughter should hear something on such and such date, but that date rolls around with nothing. Not even a call from the Realtor. She is told that is the way it is and to get used to it. I have told my kid to move on and quit messing around with these jerks. They have zero empathy and show zero care. They have not changed spots even though we taxpayers bailed them out.
My daughter wants the townhouse, qualifies for the loan and has the 20% down the cash she needs to close. She has a high credit score with never a glitch or financial misstep in her 37 years. She has a good and secure middle-level management job. No financial reason exists for her not to be accepted. Does she have any rights? I find this beyond unbelievable both from a business and moral standpoint.

Answer: Unfortunately, your daughter has no rights, at least not in this case. Whether or not the bank accepts the short-sale price is between the bank and the owner.
I can't tell you exactly why the bank is dragging its feet, but I do know that lenders want to make absolutely certain that their borrowers aren't trying to get out of mortgages they still can afford. Many people are hiding assets and otherwise lying to their lenders to get out from under loans on which they can still make the payments but choose not to.
Lenders also want to be sure the house in question is not worth more on the open market than what your daughter is offering. In the long run, it may be less expensive for the lender to foreclose, take back the property and sell it than it is to allow the proposed short sale to go through. And unfortunately, it is still all about making money for some lenders.
Only after the lender is satisfied with the answers to these two questions will it turn its attention to your daughter and whether or not she is a qualified borrower. Meanwhile, she can call off the deal anytime she likes and find another place. It may not be the house she wanted initially, but these things have a way of working out for the best. Nine times out of ten, the houses people eventually buy turn out to the best choices after all.

Are you interested in purchasing a Short Sale property, or are you considering the possibility of Short Selling your Home. Please Contact Me for up to the minute information that could make all the difference in your success.