Paul Surles Provides Practical Short Sale Tips to Local Realtors

Ever since I started providing practical tips about short sales to fellow Realtors here in Overland Park and the Kansas City area, I've had numerous agents and potential clients contact me for more advice. So, I thought I'd post a link on my website and scroll down to Foreclosure Avoidance for more info. This is an 8-week series, so check back often for timely tips.

Contact me at 913-488-7588 or through my website if there is anything I can help you with here in the Kansas City market . . .or nationwide. I have an extensive referral network so if you're in another part of the country, perhaps I could connect you with a local contact who can assist you further.

Here's what I contributed in this week's publication. . .

Q. What are the seller's options if a short sale is rejected by a lender?

Paul: One of the most common reasons lenders reject short sales is because the purchase offer was too low and didn't meet their criteria. Often times, the lender will go back to the listing agent and ask him/her to go back to the buyer and attempt to get a better offer. They generally need a minimum "net proceeds" amount on the HUD after all fees and commissions are paid.

Another option sellers and listing agents should consider is to ask the lender if they would agree to an unsecured promissory note between them and the seller for any difference in the proceeds between the buyer's offer and what they need to have. Often the terms are very attractive and the seller would have several years to repay the note.

There are other options in addition to a short sale that sellers should consider to avoid foreclosure. I always recommend sellers seek advice from a tax professional and/or attorney to help them decide whether a short sale, deed-in-lieu of foreclosure or loan modification would be a good option based on their individual circumstances.