Should I purchase a home with a short sale? part II

Anthony Pierpont
Anthony Pierpont

Before you put an offer on a home that needs a short sale there are a few questions you need to have your Realtor ask.  First, how many loans on the home and how many of them at the current price need a short sale?   The easiest short sale is if there is only one loan.  That means only one lender to deal with.  It is the same if you have two loans and only the second loan needs the short sale.  This does not guarantee that the short sale will be finished to your satisfaction but they are easier to deal with.  The hardest short sale is one where both loans need to take short money.  The Realtor then becomes the mediator between both loans.  The second loan will be lucky to get ten cents on the dollar.  Trust me they don’t like this and will always try to get more.  In a short sale you don’t have to worry about tax liens because they are always in first place and they will not take less.

The second question you need to have your Realtor ask is how familiar is the listing agent with completing short sales.  These are very difficult time consuming sales to do.  The amount of paperwork is staggering.  Now some banks still use fax however the biggest ones now have you just post the documents on line.  I have personally seen a short sale packet of 75 pages which I believe is the norm.  Not only is the paperwork staggering but the calls you have to make are too.  The listing agent cannot just send the packet and expect everything to get done.  If they do not call the lender at least once a week that packet will just get lost on someone’s desk.  I can also guarantee you that if they fax or just post it on the website something always gets lost and you will either have to fax or post it again.

 

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