How can there be short sales and REOs in what may become the hottest sellers market in history? Listen now and learn where the opportunities are in the (soon to be) distressed real estate market niche. Todays show was inspired by this email from HARRIS Coach Michele McClintock. "Dear Tim and Julie, We are starting to see more and more short sales creeping into the marketplace. I have 14 new short sales just last week.
The market in South Florida is very strong and fast. Though I don't believe that we will see a crash like we did last time I do believe that we will see a sharp increase in short sales to come.
In todays environment and what we saw as a result of 2020, every agent needs to add to the interview process when listing (toolbox)
1. How much do you owe on your property?
2. Are you current on your mortgage?
3. Have you ever missed any payments?
4. During 2020 did you do a forbearance?
5. Have you ever done a loan modification?
6. Any second mortgages including lines of credit or HELOCs?
7. Any judgments including credit cards, liens including State or Federal?
8. Suggest ordering a payoff from the lender(s)
Recently, I have had about 10 homeowners, list their properties with agents, go to contract, go thru inspections, appraisals etc only to get news from the Title Company that they had to bring thousands of dollars that they didn't have or anticipate to the closing table.
In my experience when this happens it creates a domino effect with the transaction. The homeowner immediately blames their agent, for not "knowing" this. The Buyer's agent blames the listing agent and homeowner for not knowing this and in turn questions the agents credibility. Hence, Buyers want to sue because they cannot close and have incurred costs associated with the situation.
What most people do not realize is "if" the homeowner did a loan modification, forbearance or deferment their UPB is not reflective of these situations. The lender will often put everything on the back end their mortgage creating a "balloon" payment at the end which must be factored in if paid off before the end of the loan. Hence the higher than expected payoffs.
Had the listing agent asked the homeowner these questions, they would have been better prepared professionally. Every homeowner that has had to do a short sale as a result of these situations have "blamed" their agent!
The "saves" that I am doing now because of these situations are endless. The blame game always comes back to the "agent" not homeowner. The homeowner often says to me "why didn't my agent ask me these questions when they listed the property?
"Knowledge is power"