Short Sale Process?
I am doing a Short Sale with a seller who's file has been handed over to the foreclosure dept at Countrywide and have never done one before. We signed a contract and now Countrywide is asking for all kinds of stuff from her to prove hardship and that we will be speaking with a "negotiator" soon. I want to make sure that our agreed price is not going to be "negotiatedr" right out the door. Can someone please let me know what the common steps are in a Short Sale so neither me nor the seller are taken advantage of by the lender.
thanks!
You need to request a short sale package, which will consist of a financial statement and a list of everything the bank will want and need to consider the short sale. Send them everything that they request and they will tell you usually how long it will be before they get back to you. Make sure you get a ""Authorization to Release Info Form" signed by the seller, which gives you permission to talk to the bank about her account. You should get this at the very beginning. They will usually send a realtor out to the house to do what is called a BPO which stands for Brokers Price Opinion. Thats usually a realtor or broker who gives their opinion on what they think the house is worth as is.
As a follow up to Yipes response, it is important for you ro tunderstand that the your "agreed price" and the BPO go hand in hand. The 'agreed price' that you have with the homeowner, really is a suggested amount that you would like to buy the house on, based on the comps and other information that you have gathered. If the BPO comes in higher, your "agreed price" can be negotiated right out the door.
Be certain to do your homework on what you feel the property is worth based on your gathered information, and what you would feel comfortable buying it at.
In addition, the amount that a property can or will be discounted via a short sale has many chiefs involved. From what type of loan it is, to who the investor is.
Best of Success!
BAMZ