Short Sales 60 Days Later

My last blog on the Short Sale transaction was in mid May right after the NAR meetings in Washington, DC. Although the banks prefer a Short Sale transaction over a Foreclosure, there are still many hurdles required to complete a Short Sale transaction.

While in Washington, DC and in a subsequent conference call with the Department of the Treasury, both Fannie Mae and Freddie Mac rejected the idea of increasing the amount that a negotiator could offer a second trust deed or junior lien holder on HAFA-approved Short Sales.  On proprietary Short Sales, the bank may offer more to the junior lien holders — more than the $6,000.00 maximum required under a HAFA Short Sale. The second trust deed or junior lien holder must agree with the bank’s approved settlement offer for a Short Sale transaction to work.

One of the biggest problems while negotiating a Short Sale is the banks value and the true market value of the asset.  The bank is trying to recover a percentage of the debt while they should be trying to recover a percentage of the value.

Please do not forget your MARS Disclosures once you discover you have a Short Sale.  The Short Sale transaction may save your career so spend some time on understanding the process.  The negotiator plays a very important roll in this process; they are not always right so be patient with them, submit your documentation, and know their system.

AUTHOR:  LeFrancis Arnold, CAR 2011 President-Elect, LACBOR Past President —                               www.LeFrancisArnold.com and LeFrancis’ On The Move (blog) …