Bob Szanto

Typically, a foreclosure can damage a person's credit report for seven years. A short sale usually tarnishes a person's credit report for two years. It's obviously in a seller's best interest to complete a short sale rather then a deed in liu of foreclosure, or an actual foreclosure.

Short sales are very difficult and can be quite frustrating for all the parties involved. I often joke and say, Short Sales should be called Long Sales!

It sometimes seems like the banks do not make any business sense in the way they work. I believe, they are just so inundated that they cannot keep up with the vast number of requests they receive. It seems like the further along a file is processed, the higher its priority and they finally seem to get attention.

I have been involved with both ends of a short sale, having represented either a buyer or seller. Once again, patience is the key. The magic number seems to be FIVE months from contract to close! Most people are used to closing in one month or less once a sales contract is negotiated and all parties have come to an agreement. If you or anyone you know is involved with a short sale, do not panic. Agents, make sure you communicates with your client on a regular and timely basis and prepare them to wait! If successful, a seller can get out of a property he/she can no longer afford with minimal negative credit effects; a buyer can purchase a property below market value.

Recently, my Real Estate Team has partnered with a local Real Estate attorney to assist in the short sale process. The attorney's office handles all communication and negotiation with the bank once a contract is obtained. They request that they handle the closing and offer the title insurance. In return, their fees are included as part of the settlement so the seller pays NOTHING out of pocket. If the bank does not agree to the attorney fees, the attorney's office negotiates directly with them for their fee. We have found that the banks are more receptive to a letter from an Attorney then a Realtor.

This arrangement is once again a Win - Win situation. The bank gets to sell the property without foreclosing. The seller obtains an Attorney's legal representation without having to pay for it out of pocket. The buyer (hopefully) takes procession of their new home sooner. And finally, the Realtor can concentrate on doing what they do best, assisting buyers and sellers in completing a purchase or sale of a new property!

Bob Szanto

Keller Williams Elite Realty