Roberty Cruzen wrote an excellent article entitled "Foreclosure Express or Train Wreck?: How to Avoid Legan Entanglements when Working Short Sales and Foreclosures" in the latest California Real Estate Magazine.
In this article, he reviews some rules of thumb that he recommends when negotiating a short sale--many of which I have blogged about before. He recommends always submitting the complete package, always following up every fax or email with a phone call, documenting everything, and being proactive.
The "train wreck" he refers to in the article occurs when the first and second are serviced by different servicing companies. Right now, I seem to be headed for a number of these train wrecks. I have one deal where we had approval from the first and the second, and then the second was sold off. Now the new servicer of the second wants more money then previously approved. Then I have have a first that wants to give 10k to a second, and a second who will take nothing less than 15k. Nobody wants to pitch in, but everyone wants their money.
The author of the article interviewed an agent who suggested working short sales where the first and second are serviced by the same company. That would be great! That would make the deal so much easier. But, unfortunately, it is sometimes difficult to cherry-pick the deals that come your way.
Another legal entanglement that is mentioned is that some there are requests for agents who list foreclosed properties to remove tenants and personal property in ways and in timeframes that may be in violation of state laws.
It is a slippery slope out there. We all want and need the business, and some times need to make tough decisions in order to assure that our license is not on the line!
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