Protect yourself from short sale fraud with these tips

Protect yourself from short sale fraud with these tips

    Short sales are deals in which banks agree to accept less money than what is owed on the property to get it sold and avoid foreclosure. They're also a new target for fraud. Learn how to protect yourself with these tips.

  • Your real estate agent should provide you with a current market analysis on your home, so offers should be within 10 to 15 percent of the market value. If the offer seems unusually low, err on the side of caution.
  • Carefully interview any potential real estate agents and thoroughly review all offers. Be wary if the proposed buyer is an investor group or a third party retained by the buyer.
  • In a short sale, your real estate agent should be the one who negotiates a fair price with your lenders. This job should never be turned over to the buyers or a representative of the buyers.

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Buyer beware: Short sales not always speedy

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Photo courtesy of the Deguara family | Joachim Deguara says his real estate agent helped him navigate the difficulties of a short   sale.
Photo courtesy of the Deguara family | Joachim Deguara says his real estate agent helped him navigate the difficulties of a short sale.

Purchasing foreclosures or homes offered as short sales may not always live up to expectations.

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Comments

Ana VillagranIsaac

Subject: Short sale vs. rent to own

Our family has been going through a hardship that have included loss o employment, accident, sickness, life threatening surgerys denial of benefits when there is no reason for denial except being alive and plenty more that made me decide that with my salary the bank will continue to deny my request for a loan modification, my attorney seem to think that now I might have more opportunity but I don't have more money to pay him so it is simply easy to go for the abandonment of ship. bottom line, we decided to go for a short sale not knowing much about it just trusting what others know and hoping for the best. I am looking for a place to live and find myself with nothing my family offer me something but something came up in their family that things changed and I can't find nothing that I can afford, I work hard, pay taxes, pay cobra and yet I am very stress not knowing which way to go. Is there a way that I could qualify to rent my own place or something with less value that maybe I could afford to but in the future? Why weren't we told about this before we decided for short sale

jcebasek

Subject:

Need to add to story--how to go about getting a short sale. Who handles it--Realtor or R. Estate Attorney or other? General cost to do. Criteria needed to get a short sale?

Lori Brandel, GRI

Subject:

In regards to short sale. Not always is it a good idea to do a short sale every transaction is different. I'm a licensed realtor in Seattle. I've advised my client to seek an attorney only to have the lien holder tell my client and the attorney to do a short sale first. The cost of a realtor is zero to a seller in a short sale it comes out of the proceeds of the money owed to the bank. Attorney can charge by the hour the Realtors don't. I believe it best in some cases it's best to work with both. Interview both before signing anything with either. Don't forget to check with your accountant. Remember it is OK to ask for help in as many places as you can go with the people you feel you can trust, and who have completed short sales.

joanne mckee

Subject:

You need to add the Seller should seek legal and financial counsel for any advice regarding these two areas. The Realtor sells the real estate. You need to ad the Seller's Deficiency is negotiated with the lender by the note holder, (seller). Not the realtor. Their attorney can also be in position to negotiate this for them. Realtors sell real estate.
You need to add - much more, but perhaps that is a different article!

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