Charleston SC - I am often asked, "What is a Short Sale and how does it work? Because short sales are a recent phenomenon people don't really understand them.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
A short sale is when someone is selling their house, but the sale will not bring enough money to pay off their mortgage. Many sellers are experiencing this problem due to the recent drop in home prices.
Here is why a lender will accept a short sale. If you can no longer afford your home, then the lender will have to sell it one way or another.
They would rather have you sell it today versus selling it later after foreclosure. They have learned from experience that a short sale nets them more money.
A foreclosure can take 12-18 months to complete. Many homeowners move out before the foreclosure is complete. The home sits empty for six months, a year, and sometimes even two years.
As a result, many homes have problems with mold, rot, and other repairs. This is why everyone knows that bank owned homes often represent a bargain.
The buyer of a bank owned home often has to make some repairs. New paint, carpet, and miscellaneous items add up fast. In addition, a bank owned home that needs repairs won't qualify for the most popular financing programs.
As a result, bank owned homes usually sell at a substantial discount. The lenders have realized this after years of processing foreclosures. That is why they approve short sales.
However, they don't approve every short sale. They have a process in place to reject the short sales that will lose more money than a bank owned sale.
We will submit all the paperwork to the lender and work the file thru their short sale process. You simply allow us to show the house and provide us with any needed documentation.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at jeffcook@JeffCookRealEstate.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (843) 608-9520.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Charleston Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Jeff Cook.
Jeff is a Real Estate Agent at AgentOwned Realty Co.
Phone: (843) 608-9520. jeffcook@JeffCookRealEstate.com.
View My homes for sale at www.JeffCookRealEstate.com.
Jeff Cook specializes in loan modification assistance and short sales in Charleston South Carolina. Charleston Loan Modification Help, Charleston short sales. Charleston short sale realtor. Short Sale Realtor. Charleston SC Short Sales. Charleston Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cook's personal views and do not reflect the views of AgentOwned Realty Co. This information on What is a Short Sale and how does it work is provided as a courtesy to our viewers to help them make informed decisions.
Thursday, February 10, 2011
Charleston Short Sales: Why Banks Reject Short Sale Offers and what to do about it
Charleston SC - Banks reject short sale offers for a number of reasons. The biggest reason is because they feel the property is worth X and the price is below that number.
For example, you might have a buyer willing to pay $119,000 for a short sale. The bank orders an appraisal.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
The appraisal comes back at $135,000. Usually the bank will turn down the offer and ask the buyer to increase their offer. Often times the buyer will agree to pay the higher price.
Here is another reason short sale offers get turned down: The lender doesn't have a complete short sale package. Maybe the seller's last 2 bank statements are missing.
Or, a page is missing from the sales contract. In that case, the necessary paperwork will be sent to the lender.
Reason #3: The offer doesn't meet the short sale guidelines. Every lender has different guidelines for whether they will accept or reject a short sale.
For example, the owner of the loan might be Fannie Mae. Fannie Mae has specific short sale guidelines. Unless the short sale offer meets those guidelines, it will be rejected.
Reason #4: Unrealistic expectations from the lender. Every lender has a specific employee who negotiates and processes the short sales. That employee is called a short sale negotiator.
This employee has a lot of discretion over what they will and will not approve. We have seen those employees make up their own guidelines.
They decide that Fannie Mae's short sale guidelines aren't good enough. So they demand more money from the buyer. Or they want the seller to give up their entire life's savings.
If the seller or buyer do not agree, then they will turn down the short sale offer. Never mind that they do not own the loan. If the short sale is turned down then the owner of the loan, Fannie Mae, risks losing even more money.
Most short sales that are foreclosed upon end up selling as a bank owned property. The Boston Consulting Group recently did a study on short sales. They studied what a lender would net when selling a home either as a short sale or a bank owned property.
They discovered that banks lose twice as much money on bank owned sales versus what they lose on short sales. What should your agent do with a short sale negotiator at the bank who doesn't follow the short sale guidelines?
We gently remind them of the loan owner's guidelines. They usually approve the file. If that doesn't work, then we will notify their supervisor or someone higher up at the bank.
That solves the problem most of the time. But, if it doesn't, then we contact the owner of the loan directly and let them know what is happening. That is the basis of what we do to get your short sale approved and help you move on with your life.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at jeffcook@JeffCookRealEstate.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (843) 608-9520.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Charleston Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Jeff Cook.
Jeff is a Real Estate Agent at AgentOwned Realty Co.
Phone: (843) 608-9520. jeffcook@JeffCookRealEstate.com.
View My homes for sale at www.JeffCookRealEstate.com.
Jeff Cook specializes in loan modification assistance and short sales in Charleston South Carolina. Charleston Loan Modification Help, Charleston short sales. Charleston short sale realtor. Short Sale Realtor. Charleston SC Short Sales. Charleston Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cook's personal views and do not reflect the views of AgentOwned Realty Co. This information on Why Banks Reject Short Sale Offers is provided as a courtesy to our viewers to help them make informed decisions.
For example, you might have a buyer willing to pay $119,000 for a short sale. The bank orders an appraisal.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
The appraisal comes back at $135,000. Usually the bank will turn down the offer and ask the buyer to increase their offer. Often times the buyer will agree to pay the higher price.
Here is another reason short sale offers get turned down: The lender doesn't have a complete short sale package. Maybe the seller's last 2 bank statements are missing.
Or, a page is missing from the sales contract. In that case, the necessary paperwork will be sent to the lender.
Reason #3: The offer doesn't meet the short sale guidelines. Every lender has different guidelines for whether they will accept or reject a short sale.
For example, the owner of the loan might be Fannie Mae. Fannie Mae has specific short sale guidelines. Unless the short sale offer meets those guidelines, it will be rejected.
Reason #4: Unrealistic expectations from the lender. Every lender has a specific employee who negotiates and processes the short sales. That employee is called a short sale negotiator.
This employee has a lot of discretion over what they will and will not approve. We have seen those employees make up their own guidelines.
They decide that Fannie Mae's short sale guidelines aren't good enough. So they demand more money from the buyer. Or they want the seller to give up their entire life's savings.
If the seller or buyer do not agree, then they will turn down the short sale offer. Never mind that they do not own the loan. If the short sale is turned down then the owner of the loan, Fannie Mae, risks losing even more money.
Most short sales that are foreclosed upon end up selling as a bank owned property. The Boston Consulting Group recently did a study on short sales. They studied what a lender would net when selling a home either as a short sale or a bank owned property.
They discovered that banks lose twice as much money on bank owned sales versus what they lose on short sales. What should your agent do with a short sale negotiator at the bank who doesn't follow the short sale guidelines?
We gently remind them of the loan owner's guidelines. They usually approve the file. If that doesn't work, then we will notify their supervisor or someone higher up at the bank.
That solves the problem most of the time. But, if it doesn't, then we contact the owner of the loan directly and let them know what is happening. That is the basis of what we do to get your short sale approved and help you move on with your life.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at jeffcook@JeffCookRealEstate.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (843) 608-9520.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Charleston Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Jeff Cook.
Jeff is a Real Estate Agent at AgentOwned Realty Co.
Phone: (843) 608-9520. jeffcook@JeffCookRealEstate.com.
View My homes for sale at www.JeffCookRealEstate.com.
Jeff Cook specializes in loan modification assistance and short sales in Charleston South Carolina. Charleston Loan Modification Help, Charleston short sales. Charleston short sale realtor. Short Sale Realtor. Charleston SC Short Sales. Charleston Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cook's personal views and do not reflect the views of AgentOwned Realty Co. This information on Why Banks Reject Short Sale Offers is provided as a courtesy to our viewers to help them make informed decisions.
Wednesday, February 9, 2011
How can I short sale when my lender was so mean to me?
Charleston SC - If you have ever gotten behind on payments, then you know how mean the debt collectors can be. The constant barrage of threats, demands, and phone calls usually proves to be too much for most people. As a result they give up.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
Debt collectors are mean. But, it is a tough job (although I have no sympathy for them.) I heard of a guy who recently got a job as a debt collector.
He quit after a couple of weeks. It was just too harsh and depressing. They get on the phone every day for 8 hours of abuse. Some of the people they call scream at them.
Very few people are nice. It's probably very depressing because you hear about other people's problems all day long. They become cold and callous as a result of the work.
As a result, they take their frustrations out on the people they call. If you are trying to negotiate a loan modification or short sale, do not work with the debt collection people.
They don't want you to modify your loan or keep your home. Why is that? Because they are paid bonuses on the money they collect.
They don't make a thing if you short sale or modify your loan. The debt collection people are an ugly, dull, almost useless tool. The lenders use them in a half hearted attempt to get you to pay.
You see lenders don't want you to short sale or modify your loan. They just want you to catch up your payments and start paying on time again. That way they don't lose any money.
The debt collectors are the first line of offense. "Sic em", they say to the debt collectors in the hope that you will pay up. Fortunately, when we negotiate a short sale we talk to a different group of people.
These people work in a different department. They are not callous and cold. They don't hate their job. They get paid substantially better than the debt collection folks. For most it is an actual career.
These people have training. They approve and deny short sales based on set criteria. Their job is to process the short sale, not collect money. They know that most people who are short selling can't pay. So they don't bring it up.
We do all the negotiations and discussions with them. That means when you start the short sale process, you don't have to talk to the people at your lender anymore. We take over and handle everything for you.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at jeffcook@JeffCookRealEstate.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (843) 608-9520.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Charleston Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Jeff Cook.
Jeff is a Real Estate Agent at AgentOwned Realty Co.
Phone: (843) 608-9520. jeffcook@JeffCookRealEstate.com.
View My homes for sale at www.JeffCookRealEstate.com.
Jeff Cook specializes in loan modification assistance and short sales in Charleston South Carolina. Charleston Loan Modification Help, Charleston short sales. Charleston short sale realtor. Short Sale Realtor. Charleston SC Short Sales. Charleston Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cook's personal views and do not reflect the views of AgentOwned Realty Co. This information on How can I short sale when my lender was so mean to me is provided as a courtesy to our viewers to help them make informed decisions.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
Debt collectors are mean. But, it is a tough job (although I have no sympathy for them.) I heard of a guy who recently got a job as a debt collector.
He quit after a couple of weeks. It was just too harsh and depressing. They get on the phone every day for 8 hours of abuse. Some of the people they call scream at them.
Very few people are nice. It's probably very depressing because you hear about other people's problems all day long. They become cold and callous as a result of the work.
As a result, they take their frustrations out on the people they call. If you are trying to negotiate a loan modification or short sale, do not work with the debt collection people.
They don't want you to modify your loan or keep your home. Why is that? Because they are paid bonuses on the money they collect.
They don't make a thing if you short sale or modify your loan. The debt collection people are an ugly, dull, almost useless tool. The lenders use them in a half hearted attempt to get you to pay.
You see lenders don't want you to short sale or modify your loan. They just want you to catch up your payments and start paying on time again. That way they don't lose any money.
The debt collectors are the first line of offense. "Sic em", they say to the debt collectors in the hope that you will pay up. Fortunately, when we negotiate a short sale we talk to a different group of people.
These people work in a different department. They are not callous and cold. They don't hate their job. They get paid substantially better than the debt collection folks. For most it is an actual career.
These people have training. They approve and deny short sales based on set criteria. Their job is to process the short sale, not collect money. They know that most people who are short selling can't pay. So they don't bring it up.
We do all the negotiations and discussions with them. That means when you start the short sale process, you don't have to talk to the people at your lender anymore. We take over and handle everything for you.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at jeffcook@JeffCookRealEstate.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (843) 608-9520.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Charleston Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Jeff Cook.
Jeff is a Real Estate Agent at AgentOwned Realty Co.
Phone: (843) 608-9520. jeffcook@JeffCookRealEstate.com.
View My homes for sale at www.JeffCookRealEstate.com.
Jeff Cook specializes in loan modification assistance and short sales in Charleston South Carolina. Charleston Loan Modification Help, Charleston short sales. Charleston short sale realtor. Short Sale Realtor. Charleston SC Short Sales. Charleston Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cook's personal views and do not reflect the views of AgentOwned Realty Co. This information on How can I short sale when my lender was so mean to me is provided as a courtesy to our viewers to help them make informed decisions.
Charleston Short Sales: Another Short Sale Success Story
Charleston SC - The Stop Foreclosure Institute is closing another short sale tomorrow. The sellers had a job transfer out of state. They were short selling an FHA loan with a second mortgage. The short sale was fairly simple because FHA's short sale guidelines.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
Here was how these sellers benefited from the short sale.
Benefit #1: The sellers were able to walk away with the debt wiped out completely. The FHA short sale guidelines released them from the first mortgage debt.
The second mortgage also gave them a complete release. At first they weren't willing to do that. But, we offered them a little extra money in return for a complete release.
Fortunately they agreed to it. This meant that the sellers were able to completely wipe out a total of $80,000 in upside down debt.
Benefit #2: Limited Tax Consequences. These sellers will only owe taxes on approximately $30,000 of the loss. Why? Because that was around how much money was borrowed on a home equity line.
The Mortgage Debt Relief Act of 2007 states that you will not owe taxes on a loss if you used that money to purchase or remodel your home.
However, if you borrowed and used the money for something else, then you would owe taxes on the loss. You would owe the money whether you short sold, or the lender foreclosed.
This is only my opinion after reading the law. I recommend that you talk to a competent tax professional before making any financial decision.
Benefit #3: The will be eligible to buy another home in 2 years. Current Fannie Mae Rules allow homeowners to buy another home 2 years after a short sale. Compare that with the 5-7 year wait after a foreclosure.
Benefit #4: The sellers paid no money for the short sale. Everything was paid for by the lender. The short sale lender paid the real estate agent, title company, and all the other fees. They can look forward to getting their financial life back on track.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at jeffcook@JeffCookRealEstate.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (843) 608-9520.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Charleston Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Jeff Cook.
Jeff is a Real Estate Agent at AgentOwned Realty Co.
Phone: (843) 608-9520. jeffcook@JeffCookRealEstate.com.
View My homes for sale at www.JeffCookRealEstate.com.
Jeff Cook specializes in loan modification assistance and short sales in Charleston South Carolina. Charleston Loan Modification Help, Charleston short sales. Charleston short sale realtor. Short Sale Realtor. Charleston SC Short Sales. Charleston Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cook's personal views and do not reflect the views of AgentOwned Realty Co. This information on Charleston Short Sales: Another Short Sale Success Story is provided as a courtesy to our viewers to help them make informed decisions.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
Here was how these sellers benefited from the short sale.
Benefit #1: The sellers were able to walk away with the debt wiped out completely. The FHA short sale guidelines released them from the first mortgage debt.
The second mortgage also gave them a complete release. At first they weren't willing to do that. But, we offered them a little extra money in return for a complete release.
Fortunately they agreed to it. This meant that the sellers were able to completely wipe out a total of $80,000 in upside down debt.
Benefit #2: Limited Tax Consequences. These sellers will only owe taxes on approximately $30,000 of the loss. Why? Because that was around how much money was borrowed on a home equity line.
The Mortgage Debt Relief Act of 2007 states that you will not owe taxes on a loss if you used that money to purchase or remodel your home.
However, if you borrowed and used the money for something else, then you would owe taxes on the loss. You would owe the money whether you short sold, or the lender foreclosed.
This is only my opinion after reading the law. I recommend that you talk to a competent tax professional before making any financial decision.
Benefit #3: The will be eligible to buy another home in 2 years. Current Fannie Mae Rules allow homeowners to buy another home 2 years after a short sale. Compare that with the 5-7 year wait after a foreclosure.
Benefit #4: The sellers paid no money for the short sale. Everything was paid for by the lender. The short sale lender paid the real estate agent, title company, and all the other fees. They can look forward to getting their financial life back on track.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at jeffcook@JeffCookRealEstate.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (843) 608-9520.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Charleston Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Jeff Cook.
Jeff is a Real Estate Agent at AgentOwned Realty Co.
Phone: (843) 608-9520. jeffcook@JeffCookRealEstate.com.
View My homes for sale at www.JeffCookRealEstate.com.
Jeff Cook specializes in loan modification assistance and short sales in Charleston South Carolina. Charleston Loan Modification Help, Charleston short sales. Charleston short sale realtor. Short Sale Realtor. Charleston SC Short Sales. Charleston Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cook's personal views and do not reflect the views of AgentOwned Realty Co. This information on Charleston Short Sales: Another Short Sale Success Story is provided as a courtesy to our viewers to help them make informed decisions.
Common Short Sale Mistakes and How To Avoid Them. Part Two
Charleston SC - This is a continuation of the last blog post about common short sale mistakes and how to avoid them.
Common Short Sale Mistake #4: Not doing research to find the decision maker on the loan. Most loans are not owned by the lender you are dealing with. In fact, between 60% and 75% of all loans are owned or insured by Uncle Sam.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
50-55% of all loans are owned by Fannie Mae or Freddie Mac. These two entities are owned or closely controlled by Uncle Sam. In addition, Uncle Sam insures mortgages thru FHA and VA.
In these situations Fannie, Freddie, FHA, or VA make the decision to approve or deny the short sale offer. Let's say that your research shows that FHA insures the loan.
If you are familiar with the FHA short sale guidelines, then you know whether or not a short sale offer will be approved. The same goes with the rest of the loan types. Their guidelines for short sales are easily obtained.
Common Short Sale Mistake #5: Not understanding the short sale process. Most lenders have a similar short sale process.
However, lenders are busy. The short sale negotiator you are working with may have 200 files on their desk. They don't have time to babysit everyone and explain the process.
Make sure the person dealing with your lender is familiar with the process. It can't hurt if they have done short sale with that lender in the past.
Common Short Sale Mistake #6: Submitting low ball offers to the lender. Some buyers think that since a property is a short sale the lender will take any offer submitted. This is not true. Lenders are business people.
They have systems in place to reduce losses. The owners of the loans also have rules about what type of offers to accept or reject.
Before they can approve a short sale the lenders are required to check the home's value. They will hire an appraiser or licensed real estate agent to determine the fair market value.
They do not want to discount to much from the value that person gives them. Some lenders will discount 2-5%. Others will discount as much as 10%. But, they won't accept an offer for substantially less than the fair market value.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at jeffcook@JeffCookRealEstate.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (843) 608-9520.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Charleston Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Jeff Cook.
Jeff is a Real Estate Agent at AgentOwned Realty Co.
Phone: (843) 608-9520. jeffcook@JeffCookRealEstate.com.
View My homes for sale at www.JeffCookRealEstate.com.
Jeff Cook specializes in loan modification assistance and short sales in Charleston South Carolina. Charleston Loan Modification Help, Charleston short sales. Charleston short sale realtor. Short Sale Realtor. Charleston SC Short Sales. Charleston Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cook's personal views and do not reflect the views of AgentOwned Realty Co. This information on Common Short Sale Mistakes and How To Avoid Them is provided as a courtesy to our viewers to help them make informed decisions.
Common Short Sale Mistake #4: Not doing research to find the decision maker on the loan. Most loans are not owned by the lender you are dealing with. In fact, between 60% and 75% of all loans are owned or insured by Uncle Sam.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
50-55% of all loans are owned by Fannie Mae or Freddie Mac. These two entities are owned or closely controlled by Uncle Sam. In addition, Uncle Sam insures mortgages thru FHA and VA.
In these situations Fannie, Freddie, FHA, or VA make the decision to approve or deny the short sale offer. Let's say that your research shows that FHA insures the loan.
If you are familiar with the FHA short sale guidelines, then you know whether or not a short sale offer will be approved. The same goes with the rest of the loan types. Their guidelines for short sales are easily obtained.
Common Short Sale Mistake #5: Not understanding the short sale process. Most lenders have a similar short sale process.
However, lenders are busy. The short sale negotiator you are working with may have 200 files on their desk. They don't have time to babysit everyone and explain the process.
Make sure the person dealing with your lender is familiar with the process. It can't hurt if they have done short sale with that lender in the past.
Common Short Sale Mistake #6: Submitting low ball offers to the lender. Some buyers think that since a property is a short sale the lender will take any offer submitted. This is not true. Lenders are business people.
They have systems in place to reduce losses. The owners of the loans also have rules about what type of offers to accept or reject.
Before they can approve a short sale the lenders are required to check the home's value. They will hire an appraiser or licensed real estate agent to determine the fair market value.
They do not want to discount to much from the value that person gives them. Some lenders will discount 2-5%. Others will discount as much as 10%. But, they won't accept an offer for substantially less than the fair market value.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at jeffcook@JeffCookRealEstate.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (843) 608-9520.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Charleston Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Jeff Cook.
Jeff is a Real Estate Agent at AgentOwned Realty Co.
Phone: (843) 608-9520. jeffcook@JeffCookRealEstate.com.
View My homes for sale at www.JeffCookRealEstate.com.
Jeff Cook specializes in loan modification assistance and short sales in Charleston South Carolina. Charleston Loan Modification Help, Charleston short sales. Charleston short sale realtor. Short Sale Realtor. Charleston SC Short Sales. Charleston Realtor.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Cook's personal views and do not reflect the views of AgentOwned Realty Co. This information on Common Short Sale Mistakes and How To Avoid Them is provided as a courtesy to our viewers to help them make informed decisions.
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