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Hi,I'm Keith Gordon broker for GetMoreOffers.com and
ADDvantage® Real Estate Services the topic is short sales, let's talk about short sales
from
the buyer's perspective if you're a buyer
do you like a short sale? Well short sales are pretty much market deals
they're not any different than a straight sale assuming that you can get
the seller to sell you a
straight sell at the market. people like short sales in a way because it gives
them a chance to possibly get the deal done
in a little bit less than market value but
what's gonna happen is that lender is gonna do an appraisal anyway
and if your offer doesn't come very close to their appraisal they're gonna
say no or they're going to counter you so
you're not gonna steal a short sale. Not gonna, happen unless
something weird happens. Now you know I'm got some deals that are below
market out there that are getting approved so you can get a good deal
but not necessarily a steal but the important thing to know about a short sale is that
the reason I think people like there is because you can get the seller
to go along with you very easily coz the seller doesn't care anymore too much
they of course they want as much as they can get for their home cuz it might
mitigate
the deficiency with the lender of course they want to get it as high in
dollar amounts possible in that regard but it's not like it's a straight sale
where they're talking they're equity
it's not their equity the only thing they got to lose with a short sale
besides the credit ding is that the bank come after them for
the short fault deficiency so for a buyer's perspective you're fine how long they
take?
Some take a long time; some don't. We got one done the other day in 20 days.
because the other agent, I didn't represent I wasn't the listing agent
I wasn't doing a short sale but I was the buyer's agent and they already had
it running in the background they lost one offer
and lenders year they were very good
and the actual realtor had an interest in the property it was her sister's
property so
she had a very keen eye on the lender and they got it done in 20 days that's
remarkable.
I mean fast as you can get I had one forty-five days which is fast.
Then again I've had one for two years. Going for two years the seller didn't
want to sell on my first they only backed out.
and if the seller doesn't want to sell you don't have the cooperation
you're not gonna get the deal done. So they can go a long time if the seller won't cooperate. That's unusual.
Usually what happens is you just have a slow lender
you know Bank of America sometimes are good sometimes they're not more not than good.
And Chase worse than BOA, this is my opinion of course but
you know we've dealt with a lot, not every one of them but a lot of them
so my take on short sales
Is that yes, if you like the property, go for it on
just breathe deep and don't expect things happen real fast hopefully your
buyer's agent is good but hopefully
even more important buyer's agent you want that listing agent
to know what they're doing because they're the ones that are in charge of the short sale
a lot of listing agents use terror companies or lawyers for the short sale
makes no difference now from a seller's perspective we run a lot of short sales
for seller's as well
same story. You want as much as you can get for the property and you wanna
darned good buyer it's the buyer when I do a short sale I'm looking at the
buyer
I want an incredibly good buyer I want a patient buyer
I want a knowledgeable buyer I want to know the buyer
I prefer it to be my buyer, not somebody else's buyer because I've got no control
if it's somebody else's buyer even though a lot of my deals happen with another
buyer's agent trust me I go after that agent I wanna know what's their
motivation
why they like that house why they're going to stay my buyer because a lot of
buyers will walk on a short sale and will get impatient. They'll
buy something else and you can walk on a short sale as a buyer because it's an 'As-Is'
contract
we're not going to hold you into an 'As-Is' contract coz you can escape that on
the inspection anyway
so you can't hold a buyer and do a short sale so you better have a buyer that
wants the home.
So from a seller's perspective... buyer's are important. Now
as far as liability of course you want a full release from the lender
You know this short sale
this thing is a sorta an if come, maybe.
Once you've negotiated the whole thing out with the lender and they present you with the
approval letter that says we have approve this deal at this price and this
buyer in these terms you gotta close by this date
they also will tell you whether they will look for you
for any deficiency or not if they ask you for deficiency you gotta go right back to
them and say no
not giving you any deficiency money, negative and you battle and that's what
we do we give them
more paychecks we give them more pay stubs, we give them
more bank accounts and we say look at this again this is hardship
this person doesn't have the money. So you know we battle them back but
you know usually they will let an owner occupant go
and not come after them but if you have a lot of money
in a retirement account they might ask you for a note that's happened before $5,000 $10,000 for
note definitely happens it depends on how much cash you have. How bad your hardship
really is
so as a seller choices are fine
better than a foreclosure. Foreclosure they're gonna come after you for
deficiency
guaranteed to get you for a deficiency and attorney's fees
so you don't wanna foreclosure you don't even do a foreclosure. You want a short
sale other
they're good for the seller in my opinion
and that's the way it works. So if you have any questions about short sales
and you want to talk to me
I'm available 8am-8pm seven days a week if I'm not there when you call one of my assistants
will answer some questions for you and then I'll call you shortly thereafter
my phone number is 877-232-9695
and thank you!