Minnesota Short Sales Homes

Ron did a longer more detailed article at this link for mn short sale homes

This article is written by Mario….

I have an answer for you on these questions. I am a licensed agent and

I also buy. (name) your comment makes sense coming from an agent but as

for short sales it is not true. When I buy and when i represent a

seller are two different types of strategy but when i buy i 99.9% of the

time will not send over a listing contract because i buy direct from

sellers. My listing contract doesnt get filled out until i sell (paying

myself/company commission). When you begin doing mn short sales regularly you

will see that rules can be broken and exceptions can be made. Certain

lenders will ask for a listing contract and if you dont have one you

tell them that you have not listed it. The majority of lenders will tell

you that you need to submit a written explanation of why u have not

listed the home and in that case all you need to explain is that you were

selling the house for sale by owner because the amount you owed was more

then market value and you couldnt afford to pay an agent out of

pocket. you have to understand that they lender deals with ignorant people

all day and the majority of people in this situation dont even know they

can short sale their house until they have someone approach them about

buying the house and says they can only pay less then what is owed. If

they say you need to list the house before you can submit the package,

they are lying, and you need to speak with another loss mitigator. If

you explain they will understand. the reason i disagree with 4rmgt is

because he is telling you that you should list the house with an agent

because they will see you have tried to effectively market the house. You

need to remember that the lender is simply looking at their bottom

line. If they continue to tell u that you need to list and you already

have a buyer then the person is brand new in that department and you need

to speak with their supervisor. With an offer already on the table…

would you (the lender), want to pay an additional 3-6% for no reason…

No. And by the way, most agents dont have a clue how to do a short sale

and end up blowing the deal or making the bank take much longer then

needed. I strongly suggest you read some of my other posts and see how i

go about submitting and negotiating with loss mitigation. Dont listen

to agents because MOST dont understand a simple retail transaction let

alone dealing with a bank. PS. there are a few good agents that do them

well but not many because they still structure it like a retail deal

when its not.

Your questions about the hud… you should not be doing the estimate

hud1. you need to pass the purchase agreement on to your title company

that you will be closing with and tell them that you need an estimated

hud worked up for the sellers lender and make sure to tell them it is a

short sale and to zero out the “net to seller” and have any proceeds

goto the 1st mortgage. The catch is that title companies are sometimes

ignorant to this type of transaction too. so you need to find a title

company that does them REGULARLY and they will know how to set it up. the

sellers bank doesnt care about the buyers side of the hud at all because

it doesnt effect them. so when you get it from the title company it

will usually only have seller side on it. Make sure to tell the closer

that they need to include any tax assessments, back due taxes, back due

association dues, and any unpaid utilities like city water bills. The

lender will pay taxes and association stuff and usually pay the unpaid

utilities (not gas or electric or cable. only bills that would need to be

paid before title transfers). if not at least you asked and if they

say no then you can always negotiate for buyer or seller to bring funds

to the table to cover them. The worst thing you can do is not do your

due diligence or have your title company do it because all it takes is a

back due association bill for $800 that was not noticed until 2 days

before closing to blow the whole deal. take your time and make sure all

those things are on the hud in the beginning for the lender to cover.

Ps. for any agents that get offended by the way i refer to agents, i

did say that i am licensed also. I am for peace and not war, just want to

help.

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Tags: loss mitigation, loss mitigation department., short sale agent, short sale agents, submitting a short sale