Chicago IL – This is a continuation of yesterday’s blog post about common short sale mistakes and how to avoid them.
Common Short Sale Mistake #4: Not doing research to find the decision maker on the loan. Most loans are not owned by the lender you are dealing with. In fact, between 60% and 75% of all loans are owned or insured by Uncle Sam.
50-55% of all loans are owned by Fannie Mae or Freddie Mac. These two entities are owned or closely controlled by Uncle Sam. In addition, Uncle Sam insures mortgages thru FHA and VA.
In these situations Fannie, Freddie, FHA, or VA make the decision to approve or deny the short sale offer. Let’s say that your research shows that FHA insures the loan.
If you are familiar with the FHA short sale guidelines, then you know whether or not a short sale offer will be approved. The same goes with the rest of the loan types. Their guidelines for short sales are easily obtained.
Common Short Sale Mistake #5: Not understanding the short sale process. Most lenders have a similar short sale process.
However, lenders are busy. The short sale negotiator you are working with may have 200 files on their desk. They don’t have time to babysit everyone and explain the process.
Make sure the person dealing with your lender is familiar with the process. It can’t hurt if they have done short sale with that lender in the past.
Common Short Sale Mistake #6: Submitting low ball offers to the lender. Some buyers think that since a property is a short sale the lender will take any offer submitted. This is not true. Lenders are business people.
They have systems in place to reduce losses. The owners of the loans also have rules about what type of offers to accept or reject.
Before they can approve a short sale the lenders are required to check the home’s value. They will hire an appraiser or licensed real estate agent to determine the fair market value.
They do not want to discount to much from the value that person gives them. Some lenders will discount 2-5%. Others will discount as much as 10%. But, they won’t accept an offer for substantially less than the fair market value.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at email@example.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (312) 953-6725.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Remember to visit my Chicago short sale blog frequently for great tips and information on Chicago short sales www.Chicago-ShortSaleBlog.com
Thinking about a loan modification? Our Chicago Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Phil Buoscio.
Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc..
Phone: (312) 953-6725. firstname.lastname@example.org.
View My homes for sale at www.BetterLivingRealty.com.
Phil Buoscio, is a broker with Better Living Realty he leads the sales team “Phil Buoscio Team” and specializes in short sales in Chicago Illinois. Chicago Loan Modification Help can be referred to you. We don’t do loan modifications ourselves but we work with those who do.We know Chicago Short Sales. I am a Chicago Short Sale Realtor. Chicagoland Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor. We do business in Pilsen. McKinley Park. Bridgeport. Wicker Park. West Town. Ukranian Village. Lincoln Park. Near North. River North. East Village. Logan Square. Uptown. Edison Park. Portage Park. Hermosa. Lincoln Park, South Loop, West Loop. Bronzeville. Hyde Park. Kenwood. Oak Park. Brookfield. Cicero. Berwyn. Evanston. LaGrange. LaGrange Park. Riverside. We sell condos, single family homes, lots, land, multi units, two flats, three flats, etc.
Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Buoscio’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc.. This information on Common Short Sale Mistakes and How To Avoid Them is provided as a courtesy to our viewers to help them make informed decisions.