My 1st short sale...

[H. M.]

I have listened to a few short sale gurus with different approaches on back to back deals:

1. Use a purchase contract and do not disclose the "b to c" agreement to the foreclosing lender it may kill your deal.

2. Use an option contract and disclose everything to everybody or else!

I have always believed in full disclosure, is that being naive?

Does it matter what agreement I use on the A to B any more now that FHA is waiving the 90 day seasoning stip?

Lastly, do most of you negotiate your own or out source it?

Thanks for your thoughts, I'm definately feeling outside of my comfort zone.

H.M.

[Scott Hubbard]

Originally posted by H. M.:

I have listened to a few short sale gurus with different approaches on back to back deals:

Not disclosing is fundamentally a poor choice and WILL come back and bite you.

Originally posted by H. M.:

1. Use a purchase contract and do not disclose the "b to c" agreement to the foreclosing lender it may kill your deal.

In a back to back close, the B to C transaction need not be disclosed since your using your own funds to perform unless the lender requires disclosure in the approval letter. In your A to B purchase contract, you should disclose your intention to sell.

Originally posted by H. M.:

2. Use an option contract and disclose everything to everybody or else!

You need to always disclose and the choice of the contract should not matter.

Originally posted by H. M.:

Does it matter what agreement I use on the A to B any more now that FHA is waiving the 90 day seasoning stip?

Despite the great news with the FHA, the rule change is ineffective for a back-to-back closing. The seller must be on title (owner of record) while the underwriter is doing their due diligence. So, effectively, we would have to close and hold for several days while recordation and due diligence is performed.

Originally posted by H. M.:

Lastly, do most of you negotiate your own or out source it?

I am a big advocate of outsorucing negotations mainly becuase I am a negotiator. But also, it is because an experienced negotiator pays for himself by getting deeper discunts more consistently.

There are several negotiators on this site, so you can probably find few while your here.