Tuesday, June 26, 2007

My Six Short Sale Rules

Dear Friends,

In some parts of the country short sales are becoming common place.

The National Association Of Realtors® REALTOR® Magazine Online recently posted an article on short sales:

Sold up short: How to Succeed at Short Sales


Unfortunately, short sales are a reality for home owners who owe more than their property is worth. If you have patience, persistence, and a knack for problem-solving, this niche could be for you.

You’re so happy you got the listing — at least until the sellers inform you the price you’re suggesting based on your careful CMA just isn’t enough. Why? They owe more than that on their mortgage and home equity loans. Welcome to the world of short sales.

To Read The Full Article On REALTOR® Magazine Online Click Here

I would like to suggest that it’s important that you define a set of boundaries or rules that you adhere to in this type of situation.

These would be My Six Musts For Me To Work On A Short Sale.

Do you have any to add?

1. The seller wants to keep their credit in good standing.

2. The seller has some cash to contribute to the short fall. (Not Always A Must)

3. There is enough money in the sales to pay a second mortgage or any liens or judgments.

4. You know the lender will accept short sales.

5. You are willing to work with buyer who will wait two to three months to close.

6. You get paid full commission.

Be conscious what type of deals you get involved in.

If you apply these six rules to a short sale situations, more than likely you're going to serve someone during a difficult time.

Your Trusted Advisor For Life.

Jeffrey Stanton

Ps. Do you have any questions or tips on Short Sales that you can share with us? If so email me at jstanton@0DownAskMeHow.com

The seller must have a "hardship" and be able to document it.
(ie:illness,divorce,reduction in income,family crisis, loss of job etc.)

They need to show the lender why they cannot continue to make payments.
They also need to provide all their income/expense information.
If they are "payment capable", even if its difficult, chances are the lender will not accept a short payoff.

Jennifer C.
San Jose, CA


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