Who does the work in a short sale?
I have been reading this forum for a while and I am a short sale buyer. So far I haven't heard ANYTHING in rgds to our short sale. Who does the work for me, my lawyer, my agent or the seller's agent? Who is more involved with this process and who should I hold responsible for keeping us updated??
Thx.
Replies to This Discussion
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Permalink Reply by Bryant Tutas on
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Your agent should be pressuring the listing agent for weekly updates.
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Permalink Reply by Jim Schneider on
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To answer that a little more in depth, the person processing the short sale is typically either the seller's agent or someone at the seller's attorney's office, more recently title companies and third party short sale processors have also started processing the short sale. Your agent should be able to find out who is doing the processing, and that person should communicate with your agent what is going on, which should be passed on to you.
I hope this helps.
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Permalink Reply by Joseph Alfe on
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No one should be doing any work for the buyer, other than your agent. This will be limited to asking the listing agent for updates.
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Permalink Reply by Pattilynn Guilford on
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Agree with Mr. Alfe and adding my 2 cents to say the 'squeaky wheel gets the grease' so ask for an update via email every Monday and if you don't hear back by Thurs, email again and cc all parties involved.
Good luck :)
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Permalink Reply by Johanna Devon on
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In a short sale transaction, the Listing broker/agent drives the transaction to closing. So, for you, as a buyer, it is critical that you choose a Buyer Broker who understands the process and can explain it to you. The Listing broker keeps the selling broker (your broker) informed along the way. It is up to your broker to keep you in the loop. Short Sales don't happen over night. The processing has gotten much better in the last year, so 45-60 days is not an unreasonable time frame to get the short sale approved. Once the short sale is approved, you, the buyer will have anywhere from 30-45 days to get your inspections done, loan approved and into closing. In all cases (keeping in mind it might not happen); expect a counter and possible pay for things that are broken or need repaired prior to closing. Banks aren't letting properties go much below "market". So if you go into a short sale thinking you are going to "get a deal", stop now. Banks want the highest and best offer. Good luck and make sure you select a broker who has experience on both sides of the short sale. They will be able to tell you better what to expect. Don't pick a rookie or someone who has never been involved in a short sale.
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Permalink Reply by Gidget Janz on
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Agreed, but Johanna is right, your agent is the one that will advise you to where your short sale is in the process, so if your agent does not understand it, it may be hard for them to give you an update. I have negotiated short sales, and always keep everyone in the loop each week, or even sooner if there is news before that. I create a loose timeline and fill in the blanks as the milestones happen. Make sure to ask for those updates every week and know where you are at all times.
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Permalink Reply by DON BUSH on
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It is divided among all. We update each buyer’s Realtor, who’s buyer has an interest or offer, once a week. You hold YOUR Realtor responsible. Not all Realtors do the complete job, but yours has a duty to YOU.
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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on
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As the BUYER, you should hold YOUR Agent /& Broker responsible to keep you updated. They need to follow up with the Listing Agent, Short Sale processor, or Attorney who is handling the negotiations with the servicers / lender. As a BUYER, you actually have no control over the process -except- to walk away if they don't provide updates and answers to you. At a minimum, you should receive a meaningful / factual update every week.
Good luck !
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Permalink Reply by Barbie Hintz on
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Your agent is responsible for keeping you informed. Remember, you hired them to work for you.
Who does the work. First the seller completes a packet for the lender requesting a short sale (which is sent to the lender along with a contract). The seller will complete a form stating who the contact person will be. The lender will talk to one person and they in turn will pass the information along. I would have your agent find out who the seller asked to be the contact person. (agent, attorney, title company, whomever). Have your agent ask the contact person to respond directly to them with updates. Short sales can take awhile. Each lender is different, unfortunately. Patience is required.
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Permalink Reply by Karen Dean on
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Kate,
Depending on the state you are in. California we don't normally use Real Estate Attorneys, so the Seller's agent should be contacting the mortgage company once a week for updates on average. (Or their short sale transaction manager if they are a larger team) Unless the lender has given them a specific time frame to call back such as two weeks. And if that is the case the Seller's agent should be giving weekly or bi-weekly updates to the buyer's agent. And it is your agents responsibility to update you.
When I am the agent on either side I make sure to keep in communication with my buyer or buyer's agent once a week even if there is no news. Communication is key. My advice to you would be to discuss this matter with your agent and let them know you would like a weekly update, and ask them to vigilant with the seller's agent, making sure that agent is not dropping the ball. Experience is everything when dealing with a short sale transaction and the more experienced the agents are in past transactions the smoother your should go. I hope this has been of some help to you.
Karen Dean
Keller Williams Realty
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Permalink Reply by Juan Garcia on
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The listing agent should be the one negotiating...however, they either negotiate or go out to get more business...on the other hand, your agent should be calling the other agent at least twice a week to get an update.
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One thing a buyer and buyers agent can do that will help with communication and help speed the process to a closed transaction is to be proactive with inspections and appraisals. Waiting until an approval from the sellers lender to start this process may cause further delays and problems to close. Most all buyers will do an inspection anyway. Doing it before approval can give you clarity about the property and may justify a lower offer. If an inspection throws up a red flag for you to not pursue the property, at least you didn't wait sixty days to find out.....and can more forward with your search.
Also the criteria from the buyers lender may include repairs before funding the transaction. Knowing this from the start will help you make a better business decision in deciding to purchase the property and not scramble after approval to complete any surprise your lender may throw at you.
Being more involved with the property during the negotiating process will automatically inform you where the short sale process stands, keep you engaged with it and get it closed quicker after approval.
Point is everyone has work to do regarding the timely success of a short sale. Doing your part only helps the communication process.
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