30 Dec 2009

Surviving Your Short Sale ~ Reality vs. Myth

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Short Sale In Orange County

Anyone in a short sale situation knows, it’s anything but short, and it’s anything but predictable. 

In addition being in a short sale situation can be a stressful experience to say the least. No two are the same, however there are some common traits, at Preferred Home Brokers we do our best to help you get through the process.

Keeping you informed is step one, I hope you find this helpful: 

  • Your lender requires your entire application/package be submitted all at the same time.
  • Your approval may be determined by a third-party negotiator (asset manager) for your lender who is most likely over-worked and has more on their plate than they can handle.
  • Your approval process can be more difficult if there is more than one loan. Even if multiple loans were made by the same lender, you may have two completely different departments (locations) needed to approve the process. 
  • Your second lender won’t (and isn’t required to) roll over, they will expect some compensation/payoff to sign off.
  • Your broker’s experience obviously is crucial, however (irrespective of what you may have heard from some) your broker does not have control of whether your lender will consent to the short payoff.
  • Your broker will may not provide legal or tax advice, you are advised to see your own from the proper professional.
  • Your lender (if approved after waiting months) will want a fast closing and condition the approval on a final last minute review of costs/expenses just days prior to closing.
  • Your short sale addendum (to the purchase agreement) states you shall reasonably cooperate with the lender (s) in the short-sale process.
  • Your buyer is not required to meet your lenders terms.
  • Your buyer’s deposit check may or most like may not be placed into escrow until written approval is received from your lender.
  • Your buyer may not stick it out, they may withdraw their offer at some point, depending on the length of time it takes.
  • You and your buyer may incur some expenses during the escrow, i. e. inspection, appraisal, association documents. Etc.

As your REALTOR  I will do everything possible to obtain approval, often working for months, with no assurance of compensation. My success is dependent on your success.

Preferred Home Brokers is an independently owned real estate brokerage with track record of more than 30 years of helping buyers buy and sellers sell homes.

About the Author

I maintains an active residential re-sale brokerage in Brea, CA, located in Orange County, about 20 minutes north of Disneyland. Contact Lynda directly at (714) 595-1494, or Lynda@PreferredHomeBrokers.com – CA License #00402040

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