With my reputation in Florida as a Mortgage Broker who never gives up I am busier now with all the Short Sales going on in Florida. I would just want to pass on some advice about purchasing a Short Sale.
Being born and raised in Florida and having traveled the State extensively I know the state quite well but I am not a local Realtor nor do I want to be one. I am quite happy just handling the financing of these properties.
Yesterday I received a phone call from another Mortgage Broker looking to Co-Broker this file because he has the client but does not know how to go about structuring the financing end of this short sale. Co-Brokering is not a bad idea for a Mortgage Broker as long as the client is fully informed and aware that the fee's collected would be split between the two Brokers involved. After informingthe other Broker that based on the information he provided I have Private Investors that would be interested in lending his client the money.
This is where the fun begins. After Reviewing the Appraisal that was sent to me this is what I found:
After looking at this information I spoke to the original Broker and asked about his client and if they have ever done this before and are they using a Realtor to help with this transaction.
His client was not from the area and this would be his first venture in buying a short sale. Plus the client felt that a Realtor would have been a waste of time for them. Make a long story short this deal will only fly if it a cash deal.
My advice if you are interested in a Short Sale in Florida is to speak to a Professional FULL-TIME Realtor that can help you and give you rock solid advice. If this client does end up purchasing this property it will end up being nothing more than a huge Money Pit for them.
Asking for help is not a sign of weakness but in my opinion a sign of intelligence.
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Full-Time Mortgage Broker in South FL. Palm Beach County. Specializing in Hard Money / Private Money, Foreign Nationals, Jumbo and Super Jumbo Loans. In addition I work with Today's Premiere Lenders.
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Nice post.....wish more people would ask for help sometimes......makes everyone feel better too!!!
Matt,
Great Deal!! I loved the Money Pit....
Tom Weiss
I liked #1 very important.
Matt, maybe two or three percent of the real estate agents and REALTORS in Tucson are active enough to do a good job with this, and of those, I'd bet only 10 percent or so are actively working short sales. Great topic for a post!
Mike in Tucson
Not too many short sales around here although I have to say one thing....that's why we love you Matt. You make sure they will be directed to the appropriate professional. Woohoo!
Matt,
Ive negotiated a short sale my self a few years ago and we made it happen. I was able to whittle down $17,000 debt to $400 water bill. It took about 45 days to complete and lots of waiting. They are not guaranteed. I am working on another right now but this time I have an attorney willing to negotiate for us and if it does not go through there will be no charges. They are never the best way to go but when you have someone who can't get a buyer for the price they need and have to go foreclosure it will really be the only alternative for the seller. I have started to become somewhat of an expert at them and might be doing more as this subject as well as REO and foreclosure listings will be a lot more common in the next year or so.
Matthew- I am working on 6 short sales right now. It is a tough business and you need to know what you are doing. I understand the law very well and guidelines and rules. Having a full time agent is key to making this happen but also one like you said, who knows the business of short sales. They are time consuming and most agents do not want to make the time to do them right, wait for an upcoming post about that one!
I see your new warning sign! Good for you! Katerina
I have done a few short sales and I see them ever increasing in our industry. Keller Williams University has a great course on Short Sales, which is great for novice agents but really better for someone that already knows what their doing and wants a refresher. http://kwu.kw.com Courses and search short sale
once again, great advice!!!
Ryan, I hear you.. so do I
Tom, Glad you liked
Rebecca, I Thought you might..:-)
Mike, Thank you I really appreciate that
Sally,Thank you .. <blush>
Neal, Good Deal. I am doing a lot of the purchases
Katerina, Thank you..This market has some great deals but it is not for the novice
Dru, Great ingo to pass on
Bill & Barbara, Thank you
Matthew, I am dealing with 2 short sales right now. Thanks for the information. I really don't want to become an expert on this, but in this market it is prudent to know what we are doing.
Missy, I agree this type of sale is not for the novice
Ann, "For short sales, that includes a REALTOR® and good mortgage professional " Think you said it all..:-)
Matt,
This is excellent advice for anyone interested in short sales. These deals can be extremely time consuming and its important to work with someone who knows what they are doing. :)
Hey Matt, You Da' Man! Great post...I need to learn more about short sales myself. I always learn something new on your posts. Thanks!
Thanks for posting such an important reminder for everyone. It is critical that the realtor KNOWS short sales, not just sales. There is a pretty big difference and I'm seeing so many agents that don't know a clue about what they are doing even though they've been around. Its really important to understand what training the realtor has -- it's available and extremely helpful.
Again, thanks for a great post Matthew!
perfectly said - and using you for the money is a great idea too
Suzanne, I agree short sales are not that easy and you really must know what you are doing
Stephanie, My Pleasure. I always learn something aswell on yours
Michael. You hit the nail on the head "It is critical that the realtor KNOWS short sales"
Thesa, <blush> Well I can't argue that one.. Thank you