1st & 2nd Requiring Listing Agreement...auction Pending
The auction is about 1 month away, and I have just received the short sale package from Wachovia and Homecomings financial. Both are asking for a listing agreement as part of the short sale package. I was thinking of just asking a realtor friend to list the property, but exclude me from commissions owed.
Is the bank going to balk if the date on the listing agreement is today, and I submit the offer tomorrow? Is this just paperwork they require? I realize they want to see reasonable effort made to sell the home but we are in a 45 day state - not exactly enough time to list the home.
"Is the bank going to balk if the date on the listing agreement is today"
Perhaps. I would include a note from the listing broker such that the property was listed as the as-is value and at a price which should compell non contingency offers within 45 days.
Make sure your offer is within a few dollars of the listed asking price.
you have several concepts mixed together here
A short sale is done in order to avoid having to go to judgment. In essence the lender and the borrower and/or a purchaser of the property agree that the seller will sell the property and that the lender will accept less than the property is owed (either because it needs repairs, is worth less than is owed, etc). A short sale is an alternative to going through the full legal foreclosure process.
Second, a deficiency judgment is something that is available to the lender (unless the borrower has filed for bankruptcy) if the amount taken at judicial sale is less than the amount owed to the lender including attorneys fees, court costs, etc. The lender would need to file a separate suit against the borrower for the difference or deficiency still owed.
A 1099 is a tax document and its only siginficiance is for taxes. If the borrower is successful in having his mortgage "shorted" on a short sale then the bank may file a 1099 for the difference between what was owed and was the negotiated short sale amount was. This, in my opinion, is rare.
Hope this clarifies.
Thanks Jorge,
Does this mean, if we complete a short sale for a client they cannot have a Def Judgment filed against them and only a 1099?