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Short Sale Question - Test your SS knowledge.

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  • Short Sale Question - Test your SS knowledge.

    Being new to this entire arena, I am currently working through a test short sale case. Prob not the easiest way to start, but I am learning tons.
    I understand that the ideal way to approach a short sale is to negotiate with the owner after notice has been given. What happens if we are still in the pre-foreclosure period (no auction date set) but substitute trustees have been named and recorded? The property has now been listed with an RE agent as well. Does this mean the listing agent is the only person able to negotiate with the lender? If not, then is the 'right' to negotiate dictated by the new substitute trustee or is it still with the owner??

    I know this one is involved. Thanks for reading. I look forward to being involved with you all.

    GB

  • #2
    I understand that the ideal way to approach a short sale is to negotiate with the owner after notice has been given.
    * False.. You can approach/negotiate with a Motivated Seller anytime as long as his loan is or is going to be in default.


    What happens if we are still in the pre-foreclosure period (no auction date set) but substitute trustees have been named and recorded
    * Pre-foreclosure or not the Investor (owner of the loan) has the last word on the Foreclosure date ,Short Sale approval, etc. The Investor plays the music and they (the Trustee, Foreclosing Attorney, Lender, negotiator, etc..) dance.


    The property has now been listed with an RE agent as well. Does this mean the listing agent is the only person able to negotiate with the lender? If not, then is the 'right' to negotiate dictated by the new substitute trustee or is it still with the owner??
    * No, however the RE Agent is not giving up control of the SS ( based in my experience) so he or she most likely will negotiate the SS. You can try to negotiate if you know what to do however there's been some new laws where only Attorneys or Mortage brokers are allowed to do so.. Check your local laws or with an RE Attorney to CYA.

    Ps. You only deal with the trustee if there is a BK in the mix... at least here in GA.


    Did I pass the test?

    L.Souza-GA

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    • #3
      L.Souza-GA

      You got to the question before I did. I agree with your answers.

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      • #4
        Thank you both for you interest and expertise. A+ for Souza. Now, so Lee doesn't feel left out. Here is a bonus question.
        I am strongly considering throwing my hat into the ring on this house and seeing what happens. I think if nothing else I can learn a ton. Crazy additions (who knows if they are code), Known plumbing and cosmetic issues (But hey newer windows), Crazy RE agent. Big bank as lender. Substitute trustees established...a subsidiary of the big bank. Have I missed anything?? If it comes to me I will let you know. What do you think?? Should I list all the benefits and shop it to a few rehabbers or just watch the foreclosure auction clock once it starts?????

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        • #5
          GB,

          without further ado gives the numbers, rehab amount, comps, lender's name, investor's name, your exit plan & type of loan.. IMO everything else is just a waste of time.

          L.Souza-GA

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