Cape Coral short sale process / Re-visited ;)

I previously wrote the response below to a fellow active-rainer who apparently handles short sales completely different than myself, or any other agents who I've known to actually close them. She has since DELETED my comment so I felt compelled to post this on my page.

Her blog post was all about multiple offers and even suggested that our fiduciary responsibility was with the bank, instead of the seller.

As a potential short sale seller, wouldn’t you rather have an agent looking out for YOUR best interest, and not your lenders? Obviously you’d want to bring the BEST offer to your lender as to not have to worry about as much potential monies or taxes owed. But most importantly you want to get the property sold and move on with your life. Methods like sending in multiple offers will not only confuse the lender and make their work much more difficult but it could potentially lead to NO Approval ~ and who wants that?

Elizabeth,
I read your post and most of the comments; I have to say this is so upsetting to me. As a prominent short sale agent in Florida, I have to say that your way of thinking is completely OFF.

First of all, our listing agreement is with the SELLER, not the bank. We owe it to our seller to assist them in obtaining the best offer possible. In our listing agreements here in Florida we have a check box that asks if the seller is to receive offers after they have accepted one and we check that as a NO. Why would a seller obligate themselves to sell their property to multiple people/times any way?

There can only be ONE buyer for each HOUSE/Seller. If you are having your seller sign multiple offers then you are opening yourself up to extreme liability as any one or ALL of those buyers can sue your seller for specific performance.
The bank is not a party to the contract therefore they cannot make the rules. The seller is still the seller. The bank is a third party authorization required to release the lien.

We have agents in our area doing the same thing you are doing and they are not closing many short sales. It is confusing, misleading and improper.

Short sales should be treated like a regular sale, that's what you said. So in a regular sale would you allow your seller to accept multiple offers? Of course not, so why would you allow your short sale seller to accept multiple offers?

Price the listing correctly, present all offers and have the seller pick the best one!
The multiple offer game makes no sense at all. We have an obligation to present all offers, Yes. But the seller should not be accepting multiple offers, ONLY 1! Then that CONTRACT goes to the seller's lender for their approval.

Also, from a buyer's standpoint why would they wait around to see who's offer is going to be the lucky one to be picked after 30-60 days of sitting at the bank? Not in our market, too much other inventory to put in legit offers on.

I really hope that others read my comment before they decide to do business in the same fashion as you are proposing. It only muddies up the process for all involved.

Today I read another article written by another Florida real estate agent. He also says he works on many short sale files. He claims that it will take 6-9 months for an approval on a short sale. I find that an excessively long time to wait. When we first began handling short sales the first few took us 60-90 days for an answer. This was due to 1) our inexperience & 2) the banks not having systems in place for short sales.

Within a few months of handling short sales our approvals were coming in on an average of 40 days. Some came in within days; others took 30-45 days. Within the past several months, we’re seeing these numbers RISE. We are now seeing it take 45-60; and in rare cases 90 days for an answer. Why? My thoughts are 1) banks are inundated with short sale packages 2) banks are waiting to see what the government & potential bail outs will be 3) banks are changing their guidelines

What can we do? We can help by properly educating ourselves, our peers & our sellers & buyers. We can start by pricing short sales correctly. Marketing them frequently & handling offers as we would ANY sale. We can create short sale packages that include every document that the lender may need in a concise and easy to navigate assembly. We can follow up often to make sure documents are received and being looked at. We can update the buyer’s agent or buyer frequently as to keep them involved & interested. It will take much longer if we have to go through 2-3 or more buyers.

I’ve written other articles on this topic as well. It just seems like there is still so much misinformation out there that I felt compelled yet again to address this.

If you are in need of a real estate agent who truly works short sales & understands the process please give me a call. I have been able to help many homeowners with this process and I can help you too. Remember, there should be no charge to you ~ upfront or at closing if handled correctly.

We look forward to working with you.

Yours in Success,
Susan Milner
Florida Future Realty, Inc.
239-542-8521
Susan@SusanMilner.com

www.The-Extreme-Team.com

www.FloridaFutureAgents.com

Copyright 2009 Susan Milner of Florida Future Realty, Inc.

Cape Coral holds an annual Red White & BOOM! Fourth of July event near the foot of the bridge. This year is no different. So grab your friends and family and prepare for a good time. This year will feature similar features of the past. You'll find loads of great food, great vendors, local business sponsors, fun for kids, music & don't forget the FIREWORKS!

See you this Saturday ~ July 4, 2009!

All this excitement for just a $1.00 entry fee.

We're expected to be there - hope to see you as well! Enjoy the photo from previous years!

Yours in Success,

Susan Milner

Broker of Florida Future Realty, Inc.

(239) 542-8521

Search Cape Coral real estate anytime - day or night online!

Placing an offer on a short sale

Ready to make an offer on a short sale? Here are the steps to make sure your offer stands a chance. Remember, a short sale simply means that the seller is upside-down on their mortgage. Their lender may, or may not, know that they are even trying to complete a short sale. The house may or may not be in some level of pre-foreclosure. The bank has no obligation to approve or even respond to a short sale offer. There are many documents that must be submitted with a short sale offer for it to be considered. As a buyer, you don't a lot of control but here are some basics that will help you with your short sale purchase.

* Please note, this is my opinion (a short sale listing agent) for the highest chances of success. Many listing and buyer’s agents will handle it differently. We have much experience with short sales and this is how we’ve been successful. *

Good luck!

1. Have a pre-approval letter (if obtaining a loan) or proof of funds letter (if paying with cash) ready. Make sure the proof of funds letter or bank statement is recent. Also make sure it shows enough funds to cover the purchase price you are offering. If you have a pre-approval letter make sure it was written in the last 30 days.
2. Hire a REALTOR who understands the short sale process. If they claim that ‘short sales never close’ or that ‘short sales are a waste of time’ or something similar find another agent to work with. It is true, not all short sales close. But, if you work with a listing agent who does successfully close short sales you have at least a 90% chance of it closing.
3. Look at houses that are priced correctly and in your price range. In this market you cannot look at homes well above your budget. Houses are selling at, over, or very near listing price. Also make sure the house is listed near market value. Not sure what market value is? Make sure your agent pulls comparables for any listing you consider making an offer on. If the house has a market value of $75,000 and the listing agent has it listed at $50,000 WALK AWAY. This agent doesn’t know how to price a listing. If on the other hand, they know they priced it low to entice auction-style bidding, put in your highest & best.
4. Make sure that before you put in an offer your agent has shown you comparables. I know I just said that but this is critical. If the offer is not within market value the bank will most likely decline, or not respond to, your offer.
5. Make sure that your agent speaks with the listing agent to see if they've had any communication with the seller's lender. Make sure that they have had experience with actually closing short sales. Make sure that they have the seller's documents ready for submission or already submitted.
6. Make sure your agent asks the listing agent how they are handling offers. You want to be sure that the seller is going to sign the winning offer. And sign only ONE offer. Short sales can take 30-90 days for an answer and you certainly don’t want to wait for 90 days to find out that there was a higher or better offer they were working on also. Make sure that they are only going to accept one offer. If it is yours then make sure you have a signed copy of it. If it is not yours move on to the next.
7. Some listing agents have special documents they require in order to submit the offer. Make sure all of these documents are including. Here are the must haves & below are the might ask fors.

• As-Is Contract for Sale & Purchase - filled out and signed (if FHA or VA then add that addendum)
• Short Sale Addendum - FAR has one we use - make sure checkboxes are checked & this is signed
• Pre-approval letter or proof of funds
• Escrow deposit or terms describing when the escrow will be deposited.
• Additional addendums or disclosures (real property disclosure, chinese drywall disclosure, lead-based paint disclosure, hoa disclosure - are some examples)

1. Your offer is submitted through your agent to the listing agent. The seller responds. Remember, the seller is still the owner. They must sign the offer for it to become a contract. The bank will NOT sign the offer. The bank will send a letter of approval if they approve the sale.
2. You should receive a signed copy of the offer, now a CONTRACT. This is a legally binding contract subject to third party approval (the seller’s lender).
3. You wait. Depending upon the terms agreed upon. We usually suggest a 45 day window for approval. Sometimes this takes longer. Sometimes it is a short time frame. 45 days is a good starting point though.
4. The listing agent will update your agent. Usually updates should be weekly; more frequently near the end when additional addendums may need to be signed.
5. Once the approval is received you need to make sure your funds or loan is ready to go. Sometimes the bank only gives 20-30 days to close. You must be ready. Get your inspections out of the way & be ready to close.
6. You close just like any other purchase. The closing should take place at a Title Company or attorney’s office. You will get a Title Insurance policy. The buyer should, in most cases, not be responsible for any outstanding fees, liens or bills, unless otherwise negotiated.
7. Congrats. You just made it through a short sale closing.

I know this is an awful lot of information. Especially if you have never purchased a home or if you have but have never been exposed to short sales. Having a real estate professional on your side who truly understands short sales is critical.

Our office closes many short sales each month. Our agents understand the process and know the right questions to ask to make sure there is a chance of the short sale making it to closing.

For more information on the short sale process or to speak with one of our agents about how we can be of assistance please call our office at (239) 542-8521 or Toll-Free at 1(888) 764-6665.

We look forward to hearing from you.

Good luck & make it a GREAT day!

Yours in Success,

Florida Future Realty, Inc.

2816 Del Prado Blvd. S Unit 2

Cape Coral, FL 33904

Search for Cape Coral real estate online 24/7 :)

www.Florida-Future-Realty.com

(239) 542-8521

(888) 764-6665

Susan@SusanMilner.com

We get calls all of the time from buyers looking for HUD homes in and around Ft. Myers, Florida. Our office is a HUD registered broker. We have been pretty much since our opening. We have several real estate agents who can assist you with your search. Below is a list of the current Fort Myers HUD homes. We also list & sell many different bank's REO (real estate owned) or sometimes called Bank Owned of Foreclosed. If you'd like to view the list of foreclosures let us know. We can send you an updated list as frequently as you'd like: Ft. Myers Foreclosure List.

And here are the current HUD Homes in Fort Myers, Floridal:

FORT-MYERS

Property Case Address Price Bed/Bath List Date Bid Deadline Priority 092-970137 4113 MANDARIN CT FORT MYERS, FL 33916 $36,000 3/2 06/05/09 06/14/09 Owner Occupant (Investors bid on 2009-06-15) View Map View Property Details

Property Case Address Price Bed/Bath List Date Bid Deadline Priority 095-034571 713 ARUNDEL CIR FORT MYERS, FL 33913 $55,000 3/2 06/05/09 06/09/09 Owner Occupant (Investors bid on 2009-06-10) View Map View Property Details

Property Case Address Price Bed/Bath List Date Bid Deadline Priority 092-545829 2429 CANAL ST FORT MYERS, FL 33901 $20,000 4/3 05/29/09 06/07/09 Owner Occupant (Investors bid on 2009-06-08) View Map View Property Details

Property Case Address Price Bed/Bath List Date Bid Deadline Priority 092-966994 13320 1ST ST FORT MYERS, FL 33905 $27,000 Price Reduced 3/ 1 05/29/09 Daily All Bidders View Map View Property Details

Property Case Address Price Bed/Bath List Date Bid Deadline Priority 095-026066 2426 CRYSTAL DR FORT MYERS, FL 33907 $71,100 Price Reduced 2/ 2 05/29/09 Daily All Bidders View Map View Property Details

We look forward to working with you.

Search Short Sale (and other) listings:

Cape Coral short sales

Fort Myers short sales

Lehigh Acres short sales

E Ft. Myers short sales

N. Ft. Myers short sales

Estero short sales

You can search for all of the properties available in Lee County right online from the comfort of wherever you have internet access. Our website contains a user friendly real estate search engine and is 100% free to use. Go ahead, check it out: Fort Myers Real Estate Compare properties, see photos, get notified of new listings that match your criteria, save your favorites, schedule showings and more!




Yours in Success,



Susan Milner

Florida Future Realty, Inc.

239-542-8521

Copyright 2009

We get calls all of the time from buyers looking for HUD homes in and around Cape Coral, Florida. Our office is a HUD registered broker. We have been pretty much since our opening. We have several real estate agents who can assist you with your search. Below is a list of the current Cape Coral HUD homes. We also list & sell many different bank's REO (real estate owned) or sometimes called Bank Owned of Foreclosed. If you'd like to view the list of foreclosures let us know. We can send you an updated list as frequently as you'd like: Cape Coral Foreclosure List.

And here are the current HUD Homes in Cape Coral:

CAPE-CORAL

Property Case Address Price Bed/Bath List Date Bid Deadline Priority 095-041433 1704 NE 44TH ST CAPE CORAL, FL 33909 $75,000 3/2 06/05/09 06/09/09 Owner Occupant (Investors bid on 2009-06-10) View Map View Property Details

Property Case Address Price Bed/Bath List Date Bid Deadline Priority 095-044227 1106 NE 3RD AVE CAPE CORAL, FL 33909 $30,000 3/1 06/05/09 06/09/09 Owner Occupant (Investors bid on 2009-06-10) View Map View Property Details

Search Short Sale (and other) listings:

Cape Coral short sales

Fort Myers short sales

Lehigh Acres short sales

E Ft. Myers short sales

N. Ft. Myers short sales

Estero short sales

You can search for all of the properties available in Lee County right online from the comfort of wherever you have internet access. Our website contains a user friendly real estate search engine and is 100% free to use. Go ahead, check it out: Cape Coral Real Estate Compare properties, see photos, get notified of new listings that match your criteria, save your favorites, schedule showings and more!




Yours in Success,



Susan Milner

Florida Future Realty, Inc.

239-542-8521

Copyright 2009