A Must Know – Short Sale Questions Before Writing An Offer
Arizona short sales are here to stay, at least for a while. We’ve done everything possible to try and avoid short sales. Buyers would have very few homes to preview if we eliminated the “short sale” homes for sale.
If we take a positive approach, short sale transactions can be less painful and frustrating. Knowing the right questions to ask before writing an offer can give you and your buyer more leverage. To limit the amount of aggravation, disappointment and time for all parties, can be accomplished if we take the right approach from the beginning.
The difference between a “normal” sale and a “short sale is like the difference between night and day. Our buyers and sellers trust and depend on us as real estate professionals. Be sure your agent is well qualified and an expert in the short sale process.
Be sure as a real estate agent these questions are asked prior to making an offer on a home: These important questions will help make a successful transaction.
How many mortgage liens are on the property? If you are dealing with more than one lender, such as a 1st Mortgage and a 2nd Home Equity, the short sale may never work. On a short sale, ALL lenders have to be in agreement and approve the short sale.
Does only one bank hold the note? A short sale usually means there is not enough money to pay off the first mortgage. If there is a 2nd lien holder there is no money to pay them either, however they have to approve the short sale as does the first lien holder.
Have you received any other offers? The MLS Rules and Regulations have set rules to follow that address multiple offers. Be sure you and the listing agent are well versed with the rules.
Is the short sale documentation complete? This should be done by the seller with assistance from the listing agent before the home is placed on the market. Offers have no substance and will not be entertained until this short sale package is complete and approved by the lender. A response from the lender on your offer will be a mute point if this paperwork has not been completed.
How familiar are you with the bank’s process? This will give you an idea if the listing agent has done any short sale transactions in the past. This process is essential to all parties. Short sales will be around for at a few more years. Asking these questions will better position you and your buyer to a smoother transaction and close of escrow. This time line will ease some of your buyer’s concerns and frustrations.