You would be surprised at how many agents and BROKERS don't know what a short sale is. I was working with an investor who asked me about short sales. He knows how to do them, and has done so successfully before. So I asked my broker (at the time I was with a different broker than now, needless to say I have moved on...),and the response I got was "What do you mean? Selling a house quickly?"

So I did my research, learned what I needed to, and proceeded to work with the investor. We were working on a property together that was in distress, not only financially, but the property needed work, to say the least. This was a family of 8, in an 1800 square foot house. They didn't want to lose their home to forclosure, but couldn't make the payments anymore. So, the investor said he would buy the house in a short sale, then rent it to them at a reduced price. (helps them AND he has a renter in place immediately...win-win) So we are going through all the required procedure, and come to find out the Mortgage company was a subsidiary of Wells Fargo- who will not do short sales. After almost 6 months of negotiating, jumping through hoops,helping the family file bankruptcy (not my idea), the bankruptcy lawyer told the family to "walk away". So I lose the listing, the investor is out all his time and effort and money(he paid for the bankruptcy lawyer!),he doesn't get the deal. So the family moves out, foreclosure is processed, and house sits vacant for 5 months. I noticed last week it is on the market again...from an agent 30 minutes away, and the same town as the lawyer. Hmmm...greasy palms?

Here is a good article.

http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm

I have never done one.

M

I have never done a short sale either, have heard about them, but not enough information to know the big picture.

It is like every other scenario in this business, you read, you ask questions and learn so you can help your clients. At this point, I would say "no" to having the skills necessary to get through a short sale.

I am also not embarrassed when something new comes along, I don't wade through it like I know what I am doing. I typically tell the parties this is a new one for me so let's learn together.

Thanks for the info...I am sure it will be my next scenario in this wonderful world of real estate.

Ron how do I add my link page to the message board like you said this is my first time doing all this.

Short sales are a great tool but very difficult to implement. I have been working with a seller for almost a year now who cannot make payments any longer. I called the bank and have been in conversations with them for about 6 months. Even the forclosure reps at the bank do not understand what a short sale is. When you get in these situations it can be frustrating. I had a buyer for the property who was willing to buy it on a short sale for cash. The owner lives in another country so he no longer cares. The bank has now begun foreclosure and not a single property in this condo has sold in over a year at 20 % below cost. I guess the bank finally wants to spend money and forclose on a property that no one wants. Trying to reach a person ( Asset Manager) at the bank who undestands and is willing to deal with you is a real issue. But never give up you may make some good contacts for future sales. In this world of press 1 now and press 2 now press 6 to start over ....will drive you nuts. Best of luck

I have done one short sale (several years ago) and it had a good outcome.  I recently attended a small class a local title/escrow company gave regarding short sales and received some great information.  The escrow officer teaching the class had much experience with them.  You may wish to check with your local title/escrow companies to see if they have a person experienced with short sales who could help you with what you need to know and the forms required.  

Great Blog!!

We do a lot of short sales around here :(

Shorts are more work than they are sometimes worth....

But you forget all the grief on payday!

I have three deals pending at moment, Two double dips, and both doubles are short sales.  ARGGHHH...

Great Blog! Short Sales are popping up all the time now in my area and I am currently working through one with one of my Sellers.  I did not know about the possibility of the forgiven debt being added to the Seller's income. Something for me to check into. Thanks!

I have never done a short sale either but have handled many HUD OCWEN, REO etc. for buyers.  I, too, had an informal course about them from, of all people, a lender. Learned enough to know it's a slippery slope I have yet to climb.

Good subject to share knowledge on.

I have only seen a few properties around here listed as short-sales. If you list one of these ... who guarantees your commission? How can you make sure you will get paid in the end?