Frequently Asked Questions by Realtors
Frequently Asked Questions by Realtors
Frequently Asked Questions From Realtors
Q. How much is owed against the house?
A. Candidly we don’t normally share that information. While it is interesting, the bank is only concerned with two main things:
(1) Market Value of the Property
(2) Amount of the Offer
Banks do not make their decisions on how much they are losing in a particular Short Sale transaction. When a bank takes a home back through foreclosure, they do not turn around and try to sell that property for the amount they were owed, they simply sell it for what its current market value is or a small discount below current market value. The same is true with Short Sales.
Q. How do you know the bank will accept our offer?
A. We really don’t know with 100% certainty that the bank will accept your offer. What we do know, is that banks are typically willing to accept an offer that is within 90-95% of current market value. We
price all of our listings very appropriately so if your offer is at or very near market value, we feel confident that if it is possible to get the Short Sale approved, we’ll get it done.
Q. How long does the Short Sale process take?
A. The actual negotiation/approval process can take as little as 2 weeks or as much as 3 months depending on the lender or lenders involved. On average most Short Sales take between 60-70
days from the date the offer is presented to the lender to the date of the Short Sale approval. In most cases, 60-90 phone calls and faxes back and forth between the lender and our team are required. Once a Short Sale approval has been received from the bank, the Buyer should be prepared to close escrow within 21 days (although we always try for a 30 day minimum close).
Q. Is there a Foreclosure sale date scheduled?
A. Foreclosure sale date information is public information and can be found by doing a small amount of research online. We get numerous foreclosure sale dates extended or postponed every month so please don’t ever let a sale date scare you away from one of our listings.
Q. How does a short sale affect my commission?
A. Commission as subject to adjustment by seller lender which will result in prorata adjustment in commission received by listing Broker(s) and cooperating Broker.
Q. When will my offer be presented to the Seller?
A. As soon as possible! Our office will verify receipt of your offer.
Q. Can I know the amount of the BPO?
A Most lenders will not release that number, and it can vary in amounts depending on how many they obtained. Also, the first may have a different value than the 2nd. In short, we will share that information when we have it, when we consider it to be valid (some BPOs we challenge), and when appropriate.
