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PDF Editor FAQ

What is the craziest reason that you have heard for a house not closing and selling?

I listed a short sale once, negotiated with the banks, got the deal approved. Then the bank, at the last minute, rejected it because one of the forms we had to use (their form) was revision A rather than revision B. The difference? They spelled a word wrong.Another time, another short sale. We got to the closing day and the bank refused to close. Because the amount of money they were getting from the title company was $100 MORE than what was on the paperwork. They would not work with the title company.I called the president of the bank’s office, told the secretary what was going on, the actual president of the bank got on the phone, I believe his exact words were “I’m going to kill those idiots”.The deal closed.YET ANOTHER time, I was doing a regular sale, and there were some issues with determining if an old loan, a personal loan, had been paid off. The person who made the loan was dead, his wife knew nothing about it … it was more than 20 years prior. ON THE DAY of closing this idiot at the title company said “I’m sorry, but this house is not going to close. We couldn’t get XXX.”I immediately moved the escrow to another title company and we closed the next day.

Mortgages: How can a person avoid predatory third-party short sale negotiators?

Go to a licensed attorney that specializes in short sales. IMO, this is the best way to CYA in terms of liability. I've heard of investors suing homeowners who thought they got a short sale approved but it turned out that the entity releasing the lien didn't have that authority. This is way beyond the scope of a real estate agent. There are probably some agents/negotiators that are very good and screen the homeowner to determine if they qualify for a short sale, but as mentioned above, the FTC's MARS rule governs those transactions.

What should I look for in a short sale agent for a home?

Interview at least three real estate agents. Ask the following questions:1) How many short sales have you successfully listed and closed?2) How many short sales that you listed went into foreclosure?3) Are you familiar with the HAFA program and if so, can you tell me the eligibility requirements? (if they're familiar, they will know them by heart)4) Do you negotiate your own short sales or are you going to hire a third party do to the negotiating?5) If someone else is going to negotiate the short sale, what is their fee and how will it be paid?6) Do you follow all state and federal laws about upfront fees to 3rd party short sale negotiators?7) Can you tell me or give me a list of the documents I must provide my loan servicer?8) Can you explain to me whether or not I will qualify to have my debt forgiven or if the lender will ask me to pay back the shortfall?9) What is your marketing plan? (If the plan includes listing the property way below fair market value, this is a red flag. Loan servicers want fair market value on short sales.)10) How can I get legal questions answered? (Select an agent who strongly encourages you to get your own legal advice from a licensed attorney. If the agent doesn't think you need to talk to an attorney run like hell.)Do NOT hire a brand new agent.Do NOT hire a friend or family member with no short sale experience.You need help from a seasoned short sale veteran.

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