Can a real estate agent refuse to do a short sale?

Real estate agents can end up doing two to three times the work on a short sale, something they don’t enjoy doing. If you’ve agreed to pay your agent a certain percentage under a buyer’s broker agreement, and your agent refuses to waive it, you could be liable for the difference between what the lender will pay and the amount your contract states.

Can a house be listed as a short sale?

Your agent needs to research that short sale listing first. In some real estate markets, fewer than one in 10 short sales close. Just because a home is listed as a short sale doesn’t mean it’s really for sale (because it’s subject to lender approval), nor does it mean it will sell at the advertised price.

Can a realtor be certified for short sales?

Agents may have completed the National Association of Realtors® Short Sales and Foreclosures Resource Certification program, or they may be a Certified Distressed Property Expert. You may even want to consult a housing counselor through the Consumer Financial Protection Bureau on your choice of an agent.

Why do real estate professionals profit on short sales?

In part, that’s because real estate professionals profit on a short sale. Everybody makes money except the sellers and buyers. Realize, too, that listing agents might push sellers to list as a short sale because if the sellers went through foreclosure, the listing agents would not get the listing.

Can a real estate agent stay in touch with a short sale?

Once the short sale package is submitted, the real estate agent has to stay in touch with the lender.

What should you know before buying a short sale house?

Your agent needs to research that short sale listing first. In some real estate markets, fewer than one in 10 short sales close. Just because that home is listed as a short sale doesn’t mean it’s really for sale (because it’s subject to lender approval), nor does it mean it will sell at the advertised price.

Do you need a lawyer for a short sale?

In a short sale, you may need a team of several experts to help you through the complex process. Aside from your agent, you may also enlist the help of an attorney and a professional negotiator with short sale experience. A lawyer may be required to navigate the legal complexities and changing regulations of a short sale.

What do you need to know about a short sale?

Short sales are known for taking more time than usual to complete, so it’s a good idea to do everything you can on your end. Your lender and real estate agent should be very familiar with short sales, and they can help you understand all the steps you need to take for the short sale transaction.

How long does it take to get a response on a short sale?

It can take anywhere from two weeks to two months to get a response from a lender on a short sale purchase offer. It depends on when the Notice of Default was filed, the lender’s backlog of foreclosures, and how much paperwork the seller has already submitted.

Are there any problems with financing a short sale?

As if short sales weren’t enough of a hassle to buy for most people, the type of financing a buyer uses has a huge impact on the sale, for a variety of reasons. If you try to get the wrong type of loan, even if your short sale is approved by the seller’s bank, you might not be able to close that transaction because of financing problems.

How long does it take for a short sale to close?

A short sale home closing process takes an indefinite amount of time. The seller’s lender calls the shots, not the buyer nor the buyer’s lender. If you are trying to close escrow concurrently with the sale of your home, it might not happen.

Can a seller buy another home after a short sale?

Although a seller might be able to buy another home within two years after a short sale, some have no intention of buying another home ever again. A slim margin of short sales might be profitable for buyers, but it’s usually better to purchase a home that’s not in default.

Can a seller take a loss on a short sale?

Since the owner is trying to get their mortgage lender to accept less than they are owed for the property, the lender must approve the sale. Lenders are not necessarily too eager to take a loss on their loan.

Can a property be classified as a short sale?

Just because someone advertises a property as a short sale does not mean they have been approved for one. They may think they qualify for a short sale, but unless they are actually approved by the bank or mortgage lender, this classification means nothing.

How long does it take for a short sale to go through?

It can take anywhere from a few weeks to a few months for a lender to respond to a short sale purchase offer. It depends on when the seller filed the notice of default, the lender’s backlog of foreclosures, and how much paperwork the seller has already sent in.

What happens if you get the wrong loan for a short sale?

If you try to get the wrong type of loan, even if your short sale is approved by the seller’s bank, you might not be able to close that transaction because of financing problems. Unfortunately, not every type of available financing in the United States can be used to buy a short sale property.