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South Lake Tahoe Short Sales: A Primer for Investors (Pt Two)

February 19th, 2010 categories: Lake Tahoe Real Estate, short sales

South Lake Tahoe Short Sales: The EvaluationDeveloping as much of a relationship with a lender as possible is always a good thing.

This is the second of an eight-part series on short sales. Think of it as coming from the point of view of the home buyer / investor, although the short sale process is the same for the South Lake Tahoe seller as well.

The definition of a short sale is simply this: it is the sale of real property at a price that is below the amount owned on the property.

It should be noted to all potential South Lake Tahoe buyers that the short sale process varies somewhat from lender to lender, sometimes substantially; that a successful short sale purchase can be a tedious, uncertain, time consuming process. Not all offers on short sale properties meet with success, to be certain, and it is not uncommon here in South Lake Tahoe to find multiple offers on attractive, reasonably priced short sale homes.

(current South Lake Tahoe, CA short sale summary and statistics here)

Step One: The Property Evaluation (here)
Step Three: The Hardship Letter (here)
Step Four: The Short Sale Package (here)
Part Five: The Offer and Short Sale Agreement (here)
Step Six: The Lender's Short Sale Decision (here)
Step Seven: Negotiating with the Lender (here)
Step Eight: The Closing (here)

 Part Two : The Short Sale Application

 

Try as we might, and often intrepidly so, lenders will not talk to us, or you, unless so instructed in writing by the homeowner. If we are representing you with a short sale, either as a buyer or a seller, one of the first things we do is get it in writing that we have permission to talk to the lender and then forward it them promptly.

Good teamwork with the lender is a path for South Lake Tahoe short sale success.Usually there are various permission forms, and often a specific lender will have their own, "approved" form. Regardless, what's important is to get access to the lender as quickly as possible.

Normally our first contact will be with the lender's loss mitigation department. As a buyer, this will be your most direct contact for information… if the lender chooses to provide any (sometimes getting them on the phone, or getting them to respond to an email is a challenge).

The most efficient means for a buyer to get information from a lender is to arrange a conference call with the homeowner participating in the call. This can, though rarely happens, but it is certainly something worthwhile for our buyers to explore a means to get as much information as possible regarding the feasibility, or status of a short sale.

In addition to often gaining valuable planning, and strategic, information, what is also important is this step starts the relationship building process with the loss mitigation agent in charge of the property (every short sale has one of those).

We like to ask for an outline of what that agent requires for approval and completion of the transaction, which further establishes a teamwork approach that is critical, we think, for success.

Step One: The Property Evaluation (here)
Step Three: The Hardship Letter (here)
Step Four: The Short Sale Package (here)
Part Five: The Offer and Short Sale Agreement (here)
Step Six: The Lender's Short Sale Decision (here)
Step Seven: Negotiating with the Lender (here)
Step Eight: The Closing (here)

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This entry was posted on Friday, February 19th, 2010 at 8:07 am and is filed under Lake Tahoe Real Estate, short sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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