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When it comes to short sales, we all have the same questions. Its a messed up process! Whether you’re a buyer, agent or seller, you need to understand the short sale process, and you need to be ready with answers when a motivated seller fires questions at you like a machine gun!

The Top 6 Questions Asked by Sellers in a Short Sale

Here’s a practical tip for you real estate agents or investors working directly with Seller’s, be sure to educate your seller, so he/she can weigh all options and make an informed decision about the short sale. Be sure to work with sellers who are truly ready to tackle the short sale transaction. There’s nothing more annoying (except maybe those, people (standing on my Medi-Fast soap box) who super size their McDonalds order then ask for a Diet Coke ….here’s a thought – eat a carrot every now and then and get your fat-ass on the treadmill) than negotiating a short sale only to have the seller decide let the property move to foreclosure. Here are the top 6 short sale questions asked by sellers:

  1. How will a short sale affect my credit? First thing to know is that missed mortgage payments will absolutely impact your credit - and not in a good way. It is possible that a short sale could affect your credit score, but it depends how the short sale is negotiated and the agreement made at the bank.
  2. What are the tax consequences of a short sale? Talk to your accountant first and foremost. President Bush signed Mortgage Debt Relief Act of 2007, which does have positive tax consequences for those who participate in the short sale of an owner-occupied property.
  3. Why a short sale instead of foreclosure? Short sale vs Foreclosure…its the age old question (that is if since 2007 seems age-old to you). Foreclosure is guaranteed to leave a scar on your credit report, and with foreclosure, you can forget looking for a property let alone buying for 5-7 years. With short sale, you can purchase in as little as two years.
  4. I’ve never had a late mortgage payment; can I participate in a short sale? If you have a justifiable hardship, then you can participate in a short sale.
  5. Can I walk with some money after the short sale?  The answer to this question used to be an emphatic….Uh….HELL NO! Sellers who owed $300K wanted to short the house for $200K, then walk with part of the $100K written off by the bank! Seriously, what has this messed up world come to? I tell ya what its come to….Sellers ARE IN FACT getting paid by banks to walk. I recently heard a story of a Seller getting $30,000 cash to take the short!
  6. My foreclosure date is 2 weeks away. Can I still participate in a short sale? Some lenders will postpone a foreclosure date only if they have a complete short sale package that includes a purchase contract and crucial financial information from the seller and the seller’s agent.

Know these top 6 questions and answers, and you will be sitting right at the beginning of successful short sale.

 

Bank of America is changing its short sale process, effective April 14th, so if you’ve submitted a short sale, heads up!  You’ll have to complete a list of tasks to ensure your file isn’t stamped with a big, fat DENIED. Here’s what you’ve gotta do:

  • Submit short sale offer
  • Upload the offer documents
  • Upload the supporting documents in Equator

You can access these documents at the Bank of America Short Sale Resource Center, but beware, the changes are so major that Equator will be down for up to 12 hours overnight starting April 13th. Speaking of Equator (and no I’m not talking about the line of latitude that burns hotter than a butt with hemorrhoids), all internal communications and transactions will take place here, however the duration of these transactions will be reduced to five days (from 14 days). Buyers will now only receive two counteroffers, and they will receive responses within three days. Talk about cracking the whip!

For more info, check out BOA’s webinar on April 19 at 4pm EST.

Source:  http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=274114