Comment

Comment by Kent Dills on October 17, 2011 at 2:32am

Kirsten, about the notarized signatures question you asked. 

How I've handled this (as a Listing Agent) about 35 times now is that I have my closer at the title company (who is a Notary) do the notarizing of all the parties signatures in one fell swoop during the closing appointments with buyer and seller and agents!  Easy day!

Comment by jennifer mullen on October 17, 2011 at 2:29am

Kirsten,

 

That's what I've always done with those.  Huge pain in the neck - especially when you have buyers and sellers in different states, but it seems that's what they want.

Comment by Kirsten Conover on October 17, 2011 at 2:20am

Notarizing Affidavit?  Hi, I'm the buying agent on a Wells short sale that's finally been approved, and the short sale affidavit is going around for signatures.  At the bottom of the document it says "Notice to Settlement Agent: All signatures must be acknowledged before a notary public and documentary evidence attached hereto in accordance with the requirement of your state laws"   The listing agent is interpreting this to mean that each signature must get their OWN notary for their particular signature.  Does this even make sense?  Thanks!

Comment by Kathleen Lordbock on October 14, 2011 at 3:51pm

to Steele V Popp-

I am also a MN agent but I have a Short Sale Offer Instructions Addendum that supercedes all other addendums. When the buyer's agent and the buyers sign mine and the "MN SS adden" we need to have a discussion if they are conflicting. Earnest money comes in just like a regular sale at $1000 or 1%- inspections/ tests are done in 5 days from acceptance date not lender approval. I spend a good deal of time educating other agents on these details and if they really do not agree to those terms- it is my seller's choice in the end. They always pass on those offers and move on to another.

This way everyone knows if the house has any issues(they have an inspection addendum- they can walk and get their earnest money back), well water issues, septic etc. After that we are moving on to the approval and close.

Comment by Kevin - Greenville, SC on October 14, 2011 at 2:37pm

Wells Fargo HAFA Matrix - https://www.wellsfargo.com/downloads/pdf/homeassist/hafa.pdf

Comment by Norene Williams on October 13, 2011 at 2:04pm

Thank you Mike.  Again I would not advise a buyer to have and to pay for an inspection more than 30 days before closing.  It appears that everyone speaking on this topic is only concerned with the sellers.  We have an obligation to protect our buyers interest also.  Most of the short sales her have either owner or tennant occupants up to the time of closing.  The ones that are not occupied have been, many times, vandalized and stripped, by either outsiders or in many cases by the sellers.  As I said I do and have done short sales from both sides and both sides need our guidance and protection.  I have only had 1 shortsale that even cam close to auction date.  Maybe homes are being foreclosed faster in other parts of the country but I have had listings where the sellers have not made a payment for over 2 years and it has not been foreclosed.

Comment by Mike Horton on October 13, 2011 at 1:03pm

Jim, I agree with alot of what you said but have some concerns over other parts of it. First from a commitment standpoint, the more money the buyer spends up front the more the commitment. However a lot can happen between the time the contract is submitted and when the seller and lien holders agree on the conditions. If you have your inspection up front where is the check to see if everything is ok at the end?. I am not talking about superficial stuff like the AC unit turns up missing, i am talking about possible issues in the attic or crawl space as an example, areas that you typically don't look at during the last few days of your escrow? Yes I know it is AS-IS but still the buyer should have that complete check at the end. Also, I acknowledge that the home should be in the same condition as when purchased, but in Arizona most homes have been vacated before the COE. The other item I generally disagree with is the lien holders who have move files around based on an inspection or not. Maybe a few years ago, but everyone today seems to be working in a process. I don't think any of the negotiators are paid on commission, so they pretty much follow their computer screens. Now I may not have as much experience as some, but I do my own negotiatiion and work both buyers and mostly sellers in short sales. I did over 30 sides last year so my ears are wet anyway. :-)

Comment by Jim Hale on October 13, 2011 at 6:53am

Steele and Propp

Buyers offer.  They check boxes.  They say things.

Sellers counter. Agents negotiate.  They say appropriate things. They get the selling agent and the buyer to consider a better plan.

They get the box "unchecked".

Comment by Steele V. Propp on October 13, 2011 at 5:56am

Unfortunately here in Minnesota the Boards have a short sale form that allows the buyer to choose the option of not submitting an earnest money check until the sale has been approved by the lender(s). 

 

Guess which one they always take?

Comment by Jim Hale on October 13, 2011 at 5:18am

As Ben mentioned, I advise the seller to not only make the buyer's earnest money non-refundable for 75 days but to undertake the whole house at the outset...and have the inspection/negotiation period run during the first ten business days of the process. The buyer is also required to take their loan application to the point of pulling their credit ... so the only issue for loan approval is the property/appraised price coming in right.

I do not want the seller having to negotiate the repair issue after the short sale has been approved. (That's partly just because there often simply isn't time to squeeze that in before closing.)

To put the inspection/negotiation-for-repairs at the end of the approval process is to invite a do over.

We are dealing with "as is".  Either the buyer must agree to pay for those repairs or the agent's have got to cough up a part of their commissions in order to proceed to closing - or you've got to re-negotiate with the seller's lender - mudding up the situation dangerously.  Better to get the buyer on-board and committed on the costs/condition of the property early.

Besides all that from the perspectives of the local players, the fact that the negotiator knows the inspection period is over - because you make sure to tell them it is - is not lost on the negotiator him/herself.  They are only human.  Which short sale of the way-too-many-you-are-assigned-to-cover would you make your priority?  One you knew might bite you over late repair issues? Or one on which you knew that repairs are already a non-issue?  The answer to that question should be very clear. 

And by getting this issue out of the way, you put that negotiator in a position to say to the investor and/or MI company:  "Look, here is an offer that is highly likely to close."  

By taking these steps at the outset you have greatly improved your chances for ultimate success.....for not only you but for your seller....and your buyer.

Earnest money here is typically well less than the 3% you are mentioning, but without the provisions I've mentioned, a short sale is too much of a risk of the seller's time before NOD/foreclosure and too much of a risk to the listing agent's time.

A buyer who will not accept these terms is a buyer that has not been properly coached by their own agent.  And sometimes you have to sell the selling agent on these ideas first.

A huge fraction of short sales done in my market are now done in this manner....partly because the biggest players in short sales here is a team that came here from Nevada - knowing no one here - about three years ago  and brought these methods (and a good amount of experience in short sales) with them.  They promptly took over about third of all short sales done here...using these methods.

Would that I had known then what they knew then.  I am most happy to copycat their successful model.  It seems entirely business-like and fair to all parties to me.

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