Arizona short sales are here to stay, at least for a while. We’ve done everything possible to try and avoid short sales. Buyers would have very few homes to preview if we eliminated the “short sale” homes for sale.
When a short sale is considered we want to be able to ease some of the aggravation when making an offer. A Buyer’s agent has a responsibility to know what questions to ask the listing agent prior to submitting an offer. Asking the correct questions will no doubt help expedite your buyers decision making and will keep your buyers spirits high.
Buyer’s and Seller’s depend on an agents knowledge, expertise and experience. It is of the utmost importance that the agents involved in short sale transactions are experts in the field. The following are a list of questions that should be asked by the Buyer’s agent to the Seller’s agent prior to writing an offer on a short sale home: Memorize these questions as it will place you and your clients in a better bargaining position and lessen your wait time.
Which bank are you dealing with? The more information we have about the bank, the better time line the agent can give the buyer. Banks, Mortgage companies and lenders are getting reputations as to how fast or slow they process offers they receive from a buyer.
How many mortgage liens are on the property? If you are dealing with more than one lender, such as a 1st Mortgage and a 2nd Home Equity, the short sale may never work. On a short sale, ALL lenders have to be in agreement and approve the short sale.
Is there more than one lien holder? If two or more lien holders are involved approval of the short sale may never come to fruition. All lien holders have to approve the short sale.
How do you handle multiple offers? This is a great question. Be sure your offer is presented to the lender ASAP and not put in a file folder and submitted if other offers are waiting for acceptance. The Arizona local boards have standard rules addressing multiple offers. Be sure all parties know these rules. Has all initial documentation been submitted to the lender?
Is the short sale documentation complete? This should be done by the seller with assistance from the listing agent before the home is placed on the market. Offers have no substance and will not be entertained until this short sale package is complete and approved by the lender. A response from the lender on your offer will be a mute point if this paperwork has not been completed.
Arizona’s short sale homes will continue to saturate the market in Arizona for awhile. As a real estate professional, you want to become familiar with these types of questions so they are second nature. By doing so, will eliminate a lot of the frustrations and help determine the time line for you and your buyer when trying to find that perfect home.
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