Jamie Batte-Short Sale Specialist

One of the biggest problems in the Short Sale market is buyer loyalty. So many buyers write on a short sale but continue to look for homes. Once they find something else...they terminate their purchase agreement on the short sale. This creates huge problems for both the distressed home owner as well as the listing Realtor.

If your lender happens to be Bank Of America, a new buyer means you have to start the process all over. Wells Fargo customers are under strict time frames for getting documents back and closing so if the buyer walks...and there isn't a back up offer to send the bank the file is kicked out of the system and must be restarted once a new buyer comes to the table. This creates huge head aches for the seller and listing Realtor...not to mention extreme risk to the seller if the property is getting close to the foreclosure sale date.

The easiest solution to this huge problem is this...require the buyer to put down earnest money instead of using a promissory note. Also insist that the earnest money be non-refundable for 90 days so if the buyer walks...they walk away from $1000. This will ensure that your buyer is serious enough about the property that they are willing to wait. This will keep buyers from walking and get the property sold with much less problems.

To learn more about short sales, please go to our website www.ShortSaleAuthority.net to receive a free copy of our book "Home Owner's Guide to Real Estate Short Sales."

There are in fact certain steps that must be taken to obtain a successful short sale. To learn what they are and more invaluable information regarding short sales...go to www.shortsaleauthority.net to get a free copy of our book "Home Owner's Guide to Real Estate Short Sales."

Serving Medford, Central Point, Eagle Point, White City, Phoenix, Talent, Ashland, Gold Hill, Rogue River, and Grants Pass Oregon.

The answer is possibly depending on your lender. However it is something that can be negotiated. Depending on your situation, most lenders have not been requiring them. My experience is if you have mortgage insurance you have a higher chance of you lender requiring a promissory note...well actually your mortgage insurance carrier requiring it.

Other situations requiring it would be if the appraised value of your home is much higher than what the offer is. If you are selling your home for $120,000 and the appraisal your lender did comes in at $150,000 they may be willing to sell it if you sign a promissory note for a percentage of the difference. Now if your Realtor is experienced in dealing with Short Sales, that situation can be usually remedied before it even becomes a problem.

The best solution for your short sale needs is first ensure you are dealing with a Short Sale Specialist. To get more important facts regarding short sales go to www.shortsaleauthority.net to get a FREE copy of our book "Home Owner's Guide to Real Estate Short Sales." Serving Medford, Central Point, Eagle Point, White City, Phoenix, Talent, Ashland, Gold Hill, Rogue River, and Grants Pass Oregon.

I get called by clients all the time asking me the very question. Their lenders are relentless at calling them...bugging them for money. And what makes it even more annoying is that most of the time you get a call and then have to wait forever for someone to actually start talking because their computer system who actually is calling you hasn't connected you with one of the company's reps. My clients have asked "...doesn't my bank know that we are short selling our home" or "haven't told them that we are short selling our home."

First of all...and I hope this will help other Realtors as well...your for the most part won't know that you are short selling your home until we have received an offer. Most lenders don't even want to talk to a Realtor until we have a signed purchase agreement.

Second...and most importantly...banks usually have three departments that handle distressed homeowners...a Loss Mitigation Department (Short Sales)...a REO or Foreclosure Department (Handles Notices of Default and Foreclosure Auctions)...and a Collections Department (The ones who are calling you). And the beauty of their system is...none of the departments even talk to each other. Usually the departments are in different states. So even if you are selling your home and you have an offer on it...you will most likely still receive calls from the Collections Department. The are ruthless as well! They will tell you just about anything to get you to pay something. I have heard stories about distress homeowners forking out $1,000's and once even $10,000's because the collection reps misled them to think they had to or their short sale or loan modification would be denied. Of course once they did...they were usually denied anyway...especially on loan modifications.

Now I have had some clients who when they told the rep that was calling that they were short selling their home, the reps took them off the list for call backs. Now that has happened fewer times than not...so most people doing a short sale shouldn't expect that level of courtesy. For the most part, your lender will continue to call you until your short sale is approved and you sell your home.

To get more important facts regarding short sales go to www.shortsaleauthority.netto get a FREE copy of our book "Home Owner's Guide to Real Estate Short Sales." Serving Medford, Central Point, Eagle Point, White City, Phoenix, Talent, Ashland, Gold Hill, Rogue River, and Grants Pass Oregon.

To Whom It May Concern:

I am writing this letter to explain the unfortunate set of circumstances that has caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet. But unfortunately, we have fallen short and would like you to consider working with us to allow a short sale. We would really appreciate the opportunity to work with you on this matter.

The main reason that caused us to be late is (insert your reason here and be concise and to the point). With our income not being nearly enough, we had fallen further and further behind. It is our full intention to pay what we owe. However, it's now to the point where we cannot afford our current payments. We have exhausted all of our income and resources so we are turning to you for help.

(State the approximate date and circumstances of your hardship and whether or not your situation is temporary or will be permanent.)

We feel that a loan modification (or short sale) would benefit us both. We would appreciate if you can work with us to lower the monthly payment so we can keep our home and also afford to make amends with your firm (or agree to a short sale).

We truly hope that you will consider working with us and we are looking forward to settling this so we all can move on.

Sincerely and Respectfully,

Your Signature

Date

This is just one idea and may not fit your situation. To learn more and to get other examples visit our website at www.shortsaleauthority.net to get a Free copy of our book "Home Owner's Guide To Real Estate Short Sales."