Question on short sale ?

Question

How long does it that to do a short sale. I’ve never done it before. I’m a wholesaler and I’m wondering what is the correct way to handle this so it beneficial to me as well.

Wayne Brooks · Answer

@Phillippa Gilkes

In addition to having to be listed, on a short sale...

1) the bank will require any buyer show the ability to buy in Their name

2) the contract can Not beassigned as the approval letter is for the name of the buyer on the contract Only.

In other words....short sale are Not for wholesalers.

Russell Brazil · Answer

Wholesalers dont really have any part in a short sale. The lending institution, in order to even consider a short sale, will require that the property be listed on the open market by an agent.

Account Closed · Answer

Short sales take time and they are notoriously complicated and frustrating to deal with. An offer to purchase short sale property must not only be accepted by the homeowners, but must also be accepted by the mortgage lender for the homeowner and a number of other individuals who are associated with the mortgage lender. The time and complications involved in getting all of these people on the same page as far as an acceptable purchase price goes can be complex and take a great deal of time. Just the process of working towards a mutually acceptable purchase price for short sale property may take months and months.

Will Barnard · Answer

As others have mentioned, they can take quite a long time. I have been working on one for almost 2 years now but the payout at the end for the patience on it will be well worth it. But I’m not wholesaling, I’m buying it to develop it.

You can’t assign a contract in a short sale as assignments are not allowed by the lender. So the ONLY way to wholesale a short sale is to buy it yourself with your money or borrowed money, then resale after you take title. Good luck making a profit after all of that.

Monica Lewis · Answer

They are usually pretty lengthy. Like 6 months to a year, maybe even more.

Tyler Bobo · Answer

If you have someone you've sold to before or trust enough you can ask them for a piece at the end (if it ever makes it to the end) but don't expect much as it's a long hard road and they'll be earning every bit of it if it makes it.  But most banks won't allow an assignment or double close.  If it's sweet enough you can maybe find a partner with the money and do all the crappy legwork with the short sale process.  It's not rocket science but it sure is frustrating:)  I've never bought one but have done several for my Realty clients.

Lydia R. · Answer

@Phillippa Gilkes Short sales really dont work for wholesalers unless you are able to purchase the property yourself and then resell. Also be mindful of the fact that the bank will probably place a deed restriction on the property which limits what you can do with it within a certain time frame. They basically dont want you making a quick profit while they are taking a loss. Wholesalers and short sales dont mix. The best you can hope for is some kind of finders fee or bird dog fee from the short sale agent for sending them business.

Brent Paul · Answer

I personally haven't seen any short sales take less than 6 months.  There are extra hoops to go through and sometimes the bank will not allow that price or even increase it.  That's not to say it isn't worth it.  Just be aware it's not as cut and dry as buying off the MLS.

Greg Dickerson · Answer

Short sales can take a long time. Sometimes a tear or more.

You have to get the contract signed with the seller. Once they except the offer they have to send it to the bank for approval. Typically the lender will not approve the contract unless the house has been on the market for at least 90 days at market value.

Once you get approval from the lender you can then assign the contract but you need to make sure the buyer fully understands the process. You should stay involved until the deal closes and help everyone get to the finish line.

Make sure you have an attorney or title company familiar with short sales to do the closing.

Question on short sale ?

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