Well, 10 questions, actually.

Last week I wrote that I didn’t know much about short sales, but that I knew who to call to find the answer.  At the same time as I was writing that post, Danilo Bogdanovic of LoudounForeclosures.com (there’s an upbeat site address, huh?) wrote a post entitled “10 Questions To Ask Before Writing An Offer on a Short-Sale“.  I’ve read it three times already, and I keep going back to it so I thought I’d repost it again.

Look, most buyers aren’t going to have the time or the patience to wait for a short sale or a foreclosure to go through.  Nevertheless, I think it’s important to know that if you’re going to pursue one of these homes, there are very specific ways you need to do things in order to make sure you’re protected.  In short, D (it’s easier to say D than Danilo, don’t you think?) suggests:

1. Have you received any other offers that you are waiting to hear back on from the bank?
2. How many trusts are involved that will be “short”?
3. How many total banks/creditors are involved in the short-sale and which banks/creditors are they?
4. Have you requested and received the short-sale package from the bank(s) including the hardship letter?
5. Have you sent the package and confirmed receipt?
6. Has the asking price been approved by the bank(s)/creditor(s)?
7. Who is negotiating the short-sale with the bank(s)/creditor(s) – you, a negotiator, a ivc lawyer, the title company or….?
8. Has the seller/borrower completely stopped making payments on their loan(s)?
9. Is the seller willing to hold a note with the bank for the difference? (much better for their credit score)?
10. How many short-sales have you (the listing agent) closed within the past 12 months?

And that’s just the tip of the iceberg.  Thanks to D, and Sarah, for their lessons on short sales and foreclosures.  If you’re a buyer – or a seller – who’s headed down this road, let’s talk … I’ve got some experts who’ll be glad to help.