Posts Tagged ‘seller’

What is a short sale and is it something I should consider?

That is a question that I get a lot from sellers looking for short sale information.  I tell them the basic definition of a short sale “A property that is sold ’short’ of what is owed on it.”.  The chief issue being whether or not the lenders involved will accept the this transaction or seek to pursue an alternate remedy to the situation (like foreclosure or going to court for a monetary judgement).

The best thing to do is ask questions.  Ask your real estate agent, ask your accountant, ask your lawyer, ask your banker and finally ask yourself if this is something that you need to do.  This site (www.HomeAndPropertySolutions.com) is a great resource to find answers on and to get a whole bunch of short sale information.  A perfect place to start answering that question and when you are set to move forward, it is a great place to find an agent who is an expert in this area (no matter where you live in the US).

Browse around, use the search and remember that you can never ask too many questions when it comes to doing a short sale and how it will affect your credit and ability to purchase in the future.

I hope this helps!

How does the seller determine the asking price for a short sale? Do they determine it themselves hoping the bank will then approve, or do they make negotiations with their bank before they list their price so they have a better chance of it getting approved?

Seller accepted our offer on a short sale. Our offer was nothing more than 5K over the asking price and 20% down.

Seller accepted our offer then a week later came back with the counter offer below:

“We will agree to the ‘best prevailing rates’ at the time of the closing
of the escrow.”

What is the purpose of this counter offer before sending it their lender for approval?

Of course we the buyer would want the best mortgage we could find.

Is there some hidden agenda here?

I don’t need an exact time-frame just an approximation of an average short sale. As of today it has been 78 days and we have not heard anything from the lender at all?
Ryan B – We know that the offer is not lost, nor have they accepted another as the seller’s agent just talked to the bank this morning. We are just waiting for the lender to get a move on this.

I am trying to short-sale my property, and I got in contact with a company that specializes in buying short-sale properties. They are asking me to deed the title over to their company while they negotiate with my lender. I don’t feel comfortable signing away the title before the sale is approved, so I’m not going to do it, but I was just curious if this is normal procedure for a short sale.
I read the warranty deed, and it looks like they are wanting me to deed the title into a trust, in which I would be the beneficiary. Does anyone know exactly what this means?