An interesting article on Short Sales

Short sales have been the buzz word for quite a few months now. If you watch the late nite TV info-mercials they're evidently quite a deal. I get alot of questions from buyers wanting to persue them. I found an interesting article on a Virginia real estate blog that I keep tabs on. I'll add the post here: http://blog.franklyrealty.com/2008/05/top-10-q.html .

Frank really does have a great list of questions for agents/brokers as well as consumers to be mindful when persuing the short sale market. I especially like his 10 Questions To Ask, here they are:

Here is the exact e-mail I send to the listing agent of a short sale.
Feel free to copy and paste this.
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Hello,I have a possible buyer considering your short sale listing.Our company policy is to ask for more information from the listing agent before showing any Short Sales.Can you please answer the following questions:

1. Have you closed a Short Sale before?

2. Have you requested and received the short sale package from the bank, including the hardship letter?

3. Have you sent the package AND have you confirmed receipt?

4. What communications, if any, have you had with the bank?

5. Has the bank approved the list price?

6. Have you received any other offers that you are waiting to hear back from the bank on?

7. Does the loan have PMI on it? (Private mortgage insurance)

8. Is there one or two trusts? Any other liens?

9. What are the names of the banks? Are these FHA or VA loans?

10. How long do you estimate that the lender will take to provide an answer to an offer?

11. (new) Has your seller completely stopped making payments on their loan.

12. Update 1-22-09: Is the seller willing to hold a note with the bank for the difference? (much better for their credit score)

The article goes on with some interesting insight from other agents & consumers comments on the state of the short sale market. I wrote previously on this market : http://medfordhouseblog.blogspot.com/2008/07/short-sales-short-changed.html .

Wonder how much longer there will be this quagmire surrounding the short sale workouts with the lenders & the listing agents who market the properties.

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