A few facts and pointers gleaned from Thursday's "Holding the Deal Together" panel here at the GRRA:
- If you're a buyer's agent working a short sale, be prepared to deal with more parties and less flexibility. You'll have to work with the seller, their lender and attorney, as well as the listing agent. Open communication among all parties is a must!
- Though it has been as high as 60% in years past, mortgage brokers only originated 15% of mortgages in the U.S. last year.
- When listing a short sale, it's a good idea to contact the closing attorney and order a title search as soon as you get the listing. This will cost, but it could end up saving the transaction down the road.
- It's up to the lender if a seller qualifies for a short sale, and criteria vary. Often -- though not always -- there will be some months of delinquency, and sellers generally have to prove a major change in financial circumstances.
- A short sale does not wipe out judgments and tax liens.
- A short sale will not have as much of an impact on a seller's credit as a foreclosure.
- If you're thinking about jumping into foreclosures and short sales, you should consider earning a CDPE (Certified Depressed Property Expert) designation.
- Appraisers have recently gotten much busier because of the tide of refis. Because of this, your appraisal may take a little longer than it used to, but you should generally still see an appraisal completed within about a week of ordering it.
- As a buyer's agent, don't be afraid to ask a listing agent: "Are you absolutely sure your seller will be able to make it to the closing table?"
The bullet points touch on several different areas, as did the panel itself. This is only a taste of what was said, but we received a lot of positive feedback for this panel from those who attended, so you can bet we'll have more like this in the future. Special thanks to moderator Barbara Mann and panelists Joyce Pusey, John Overfield, Guy Lizotte and Michelle Porter.