Login
Register
Short sales are easier when you have the answers. Are you asking your seller the right questions?
Posted on 16. Oct, 2016 by ssc in Short Sale Connection Blog
Avoid common mistakes that kill short sales. Asking the right questions helps you build a foundation for a successful short sale transaction.
Ask your seller:
1. Who's on the mortgage? You need to make sure everyone on the mortgage is cooperative. Often ex-spouses can throw a wrinkle into the deal and cause problems. The lender will normally require all the financials from everyone on the mortgage.
2. Are there any other potential liens or mortgages? You can't close without satisfying all other liens or judgments. Seller's often don't know or remember so ask these questions:
Have you done a loan modification? We often find out there's a separate lien held by HUD on FHA loans. Sellers don't realize that their lender's basically refinancing the principal, but all the other fees including missed payments, penalties, filing fees, etc are lumped into another lien seperate from the mortage that must be paid in full.
Did you fall behind on credit card payments? Often this results in a judgment against the sellers and will show on title to the property. These must be satisfied so have your seller find the contact info for whoever is handling the collection, and the account number.
Are you behind on municipal fees – Sewer/Trash? HOA fees? Federal Taxes? Child Support?
3. Have you filed (or are you in) Bankruptcy? – You'll need their bankruptcy attorney's contact info. If it's an active chapter 13, the lender will usually require a letter from their attorney authorizing you to work on the short sale. You'll also need to coordinate time frames with the attorney regarding the motions they'll need to file to remove the house from the bankruptcy. It's also important that you prepare everyone for the extra delays with a bankruptcy that are always required after short sale approval and before settlement can take place.
These are just a few basic questions included in the seller questionnaire we ask sellers to complete when starting a new short sale file. The more you know, the better prepared you are, and the better your chances of closing the sale.
Do you have questions? Call anytime you need help with a potential short sale listing.
Ross Gahagan, Realtor
Managing Member, Short Sale Connection LLC
Cell Phone – 717-648-0675
MyShortSaleLink.com
Like Us On Facebook Connect with Us on LinkedIn
