What is some of the Facts that Realtor 's are uninformed about in Short sales?

Question

Most realtors disagree on many points who do we believe?Do the rules change from state to state?Is it govern federally?

Answer 1

Some of the people who answered your question prove that the Realtors/brokers need major help. Let me clear the air. Banks dont authorize the Short Sale, the INVESTOR who owns the note ultimately makes the final decision. Mortgage service providers might have a general guide line but it all comes down to the investor.

Agents don't know how to maximize their commissions. Since I worked at the lender I know how they can get more.

Generally, the agent doesn't know how to protect the seller from exposing assets.

They also have a hard time completing the estimated net sheet (sometimes done by title companies or attorneys) CORRECTLY.

There are so many things they can do better. The worst thing they can do is think they know all there is about a short sale and not educate themselves more.

I have done over 1000 short sales and everyone is different. Agents try to generalize them and make them fit into a box.

Some agents don't know how to negotiate either, some don't know how to offset the 1099. The list goes on and on!

Not all agents are bad. I highly recommend that you interview your agent before you sign the listing agreement and call some of their prior short sale sellers.

If you are an agent, I would speak with a short sale consulting company to make sure all your T's are crossed.

There are also short sale consulting companies on-line that specialize on nothing but short sales. It would be wise to speak to one of them first!

Good luck , and good question!

and NO, its not goverened federally. Each investor has different guidlines that will need to be met b4 the short sale is granted.

Answer 2

Short sales are more variable because of the banks involved. PMI (Private Mortgage Insurance) gives the bank the coverage to make up a percentage of the difference between sale price and principle owed. Some banks are lenient others are not. States may also have their requirements but primarily it is the bank who calls the shots.
Considering the fact that only 10% of Realtors stay in the business after 1 year and the fact that the market has changed drastically in the last 1-2 years, it is vital that you thoroughly interview your Realtor and Banker before you make any concrete decisions.

One of my short sales is contingent on what the bank will allow which is giving us absolutely no flexibility. The other is only contingent on what balance the sellers are willing and able to carry once the sale is made and also what the bank will go along with.

Answer 3

There are no rules, only policies and guidelines of the servicers, lenders, mortgage companies, and others that might render a decision, and those policies can change from day to day and market to market. Some lenders may take a short time to approve a short sale, others may take months and order several different brokers to do an opinion of value, before they realize that a particular market has "gone bad, value wise."

Answer 4

There are no hard and fast laws concerning short sales. The ONE thing upon which all agree is that you MUST have the lender's approval to get a short sale processed. The lender is basically in control of what happens or does not happen.

The lender holds the lien on the property, and it's their decision whether or not to accept the terms of any short sale offer.

Answer 5

the details of short sales change

not only from state to state, but each mortgage contract may have different stipulations in it about that possible event. [in the fine print, of course].

only the Federal Income tax consequences are uniform across all 50 states. [and those are that the amount of debt forgiven is income to the debtor in the year granted -- unless and until a law is passed changing this.]

Answer 6

Realtors are not taught anything like that in school. They have to go out and learn everything on their own, so sometimes they get info wrong. But most realtors are so arrogant that they will always insist they are right.