Short sale without Agents

[Teddie Blue]

I'm mainly addressing Dave P, but I welcome anyone to comment (I'm sure there are many good people) except for opinionated ideals on getting a agent. I do understand what is payed for and who pays its. I also understand that someone else would be working for you thats free on my end. Realtor commision and closing cost is a percentage of the BPO which shortens gaps of sensible offer that would be accepted. Oh and Yes I understand agents negotiate. There are realtors with experience and a great track record! Thank you for the one's that do your job well. The task at hand is below and is why I came to a forum of intelligent individuals.

Short Sale without agents

To my understanding I have to get the mortgage borrower to sign a release enclosing their personal/ financial information

I should make a offer after comprising data from similar homes in the immediate area that have sold and are for sale. I do understand process of finding market value and I also know agents can share info like this with you without enlisting their abilities for hire.

The bank will do a BPO

Will my offer have to be made before I know the results of the banks BPO?
Can the borrower find out and inform me or is that privileged information?

I have gather their is no real specific way of knowing how low a offer to go below a BPO
My research has said between 75- 85 percent of that BPO value. I do know negotiating is a 2 way street and whenever i sell a posession learn the value and the acceptable loss Im willing to take. Craigslist can be hell for selling a car. I wont be the guy that offered me $3000, ryobi chop saw, 47 in flat screen, and a sig 9mm handgun. For a car worth right under $10000 privately owned. LOL!!!

Im aware of how to find most pertinent information of past buyers via county recorders and accessors. I pick of that skill to find preforeclosures without paying a listing service. But will the bank do a Lien search on the title? Their lien being first in line would make seem not beneficial. Will the bank cover the liens (taxes, hoa, mechanics, & 2nd mortgage)? I digress they would, or like Hoa fees might be dismissed. If I'm to responsible for some of these I would like to just know before hand. I know at a trustee sale buyers can get their feeling and pockets hurt this way.

As for the paperwork for the sale, does it consist of the same of paperwork provided by a title company for a FSBO or is it different. Of course somethings will be specialized, but how?

I really appreciate everyone taking your time to help me out you seem very knowledgeable and forward.

I have been trying to learn all I can about real estate for future investment endeavors. Im not the average joe! What ever you tell me I'll retain and go on by myself to learn much more from your basis before investing.

[Vanessa Brown]

It has been established that you need a Realtor so I won't go into that. I will address the legal implication of doing it without a Realtor (which the bank isn't going to do).

The reason the bank wants the Realtor to be involved is amongst other things a blame-shift device. Realtors have errors and omissions insurance as well as (usually) some sort of state guarantee fund for wrong doings in real estate that is run by the commission. If the homeowner feels they've been wronged in the deal, bank lawyers are going to point them in the direction of their Realtor. If there is no listing agent (at least) or selling agent, then the next deepest pockets belong to the bank and as a professional real estate associated organization they can not blame you for queering the deal as a civilian (for lack of a better term). The whole thing becomes the sole responsibility of the bank. No one with common sense (or money to lose) puts themselves in that position. Banks are being sued regularly for shady foreclosure practices and honestly you're not enough of a cover for them.

As for your question about the title and liens: any good title company can do a title search for you for a fee and that should turn up any liens. It only takes my favorite title company about 3 days. As one who has listed my share of short sales I'll tell you that most banks will not pay the liens to get the property because if the short sale fails they just foreclose and get the property anyway as the first lien holder. If it's a short sale that means they have a mortgage and that means that the mortgage company WILL make sure that taxes are paid and probably a homeowners insurance policy. They do this to stay in the first lien holder position. In some states mechanics liens come first, but those states are few. So aside from something like that the bank has no reason to pay anyone. It is usually up to the seller and the buyer to try and clear up any liens at or prior to settlement.