HEY Short Sale Seller - GET OUT!!!! of our new home...

By
Real Estate Agent with Godzyk Real Estate Services

Short Sales can pose some interesting questions. If all the challenges are met and the short sale gets approval from the home owners lender, the biggest challenge could be yet to come. I work with alot of Short Sales and Bank Owned homes here in the Manchester NH area so I have seen a troubling pattern. This blog is inspired by a question from a buyer looking for help. For them it was too late for my help as they made an offer on a short sale with no buyer broker and an out of town listing agent they never met. Since releasing this blog yesterday my Inbox lit up which inspired this new blog You Can't handle the Truth about SHORT SALES.

You see the biggest question is when does the seller move out. The largest problems arise when sellers are not aware of the time frames and buyers are not ready to accept the consequences of a poorly managed short sale. The buyers mortgage will mandate they move in upon closing and the seller needs time to get out. The problem is when the buyer lets the owner or a tenant stay in the property after closing with a short sale. I have both seen and heard of sellers refusing to leave after closing and tenants that were allowed to stay taking everything that was not nailed down and quite a few that were nailed down with them.

HOW CAN A BUYER PROTECT THEMSELVES WITH THE SELLER BEING ABLE TO HAVE TIME TO MOVE?

THE SELLER: The seller needs to start by choosing an agent to list with who is local, full time and well experienced with listing, negotiating and selling short sales. You see a well experienced agent will educate the seller and inform them through each step of the short sale. The final step is the most important that when approval comes, the bank will usually mandate closing in no more than 30 days from approval which means the seller should have arrangements in order where they are going to move to.

THE BUYER: When I represent a buyer I always tell them under no circumstance would I buy a home that I would owner occupy and allow anyone to reside in the house when I closed.

People will ask what if you are the listing agent, How could you go against your seller like that? It is an easy answer becuase I would not put my seller in that position. I inform them through each step of the short sale process so they know when it is time to look and when it is time to move prior to being oput in the situation of "get out now".

In conclusion Home Owners have a choice, they can list their home with just anyone and face lots of potential issues becuase they rushed. OR They can choose to sell it through an agent who will spend that extra time to get the job done right.


It does not take magic to turn your "For Sale" sign into a "Sold" sign. it takes a full time Local Agent who specializes in Listing homes like yours.

 

If you need to sell your home and you owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale whcih may be able to help you.

Please try and avoid out of state or out of town agents and companies that make "out of this world promises". We are local agents with experience who never charge any up front fees. WE GET RESULTS!!!

 

We stand by you through every step in selling your home.

 


PLEASE SEE MY "TOP" TIPS FOR BUYING A HOME

 
 

PLEASE SEE MY "TOP" TIPS FOR SELLING A HOME

 

 

 
 
SUPPORT LOCAL BUSINESS!!!
 

ONE OF NEW HAMPSHIRE'S LEADING AGENTS FOR SHORT SALES AND BANK OWNED HOMES...

If you are Looking for a Real Estate Agent you have come to the right place. Scott Godzyk is a Full Time and Local agent ready to serve all of your Real Estate needs through each step of the buying or selling process. We are proud to be locally owned and operated.

If you owe more than your house is worth, If you are behind in your payments, I may be able to help. Call me to find out how you may be able to sell your home at no additional cost to you.

Scott Godzyk is the Owner/Broker of The Godzyk Real Estate Services located in Manchester NH. With 25 years of Real Estate experience Scott specializes in Listing and Selling Bank Owned Homes, Short Ssles, Residential Properties, Condominiums, New Construction and Investment Properties. Scott services the counties of Hillsborough, Merrimack, Rockingham and Belknap. To contact Scott Godzyk please call 603-661-2121 or email sctprop@aol.com. his website is www.ScottSellsNH.com.

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. David & Lisa Webber 06/12/2012 08:03 AM
  2. Satar Naghshineh 06/12/2012 11:05 AM
  3. Gene Riemenschneider 06/12/2012 05:00 PM
Topic:
Home Selling
Location:
New Hampshire Hillsborough County Manchester
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Rainer
299,088
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Kimo's Lifestyle Solutions

Interesting perspective about employing a particular type of RE agent in order to deliver performance. Heck, aren't all RE agents professionals and knowledgeable to provide their service? Sellers usually choose the RE agent who lists the property at the highest price and that's why homes in that inventory linger on the market almost indefinitely and don't sell, right?

Jun 12, 2012 08:01 AM #55
Rainer
137,132
Gretchen Bradley
Meridian Capital-Giving Back 4 Homes - Roseville, CA

Great post.  I liked the links to the Top 10 Tips for Buying & Selling a home.  Very nice touch.

Thanks!

Jun 12, 2012 08:07 AM #56
Rainmaker
858,512
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

With a good agent, the sellers should have a good idea of the timetable. I can see not wanting to jump the gun too far, since you never know if any sale will close until the paperwork is signed and the loan is funded. I have seen transactions fall apart the day before closing.

 

Jun 12, 2012 08:09 AM #57
Rainmaker
276,887
Paddy Deighan JD PhD
Aston McLaren Inc - Vail, CO
Paddy Deighan J.D. Ph.D

seems to be happening mroe frequently- short sellers that are not leaving!! as a result, I now start to ask where they are going when the sale closes escrow

Jun 12, 2012 09:39 AM #58
Rainer
91,167
Tanja Cisliek
Future Home Realty - Seminole, FL

Oh boy, what a situation!! You are so right, a knowledgeable Realtor will set the Seller's expectations right, and advise them how wrong it is to stay in a place after closing. Good post, think it's great that it got featured.

Jun 12, 2012 09:42 AM #59
Rainer
87,352
Tara Cummins
Stratagy4SuccessNow - Mesa, AZ
Marketing Concierge, Strategy4SuccessNow

Wow!  I am in the process of short selling my home, and this post makes me really grateful for a great listing agent.  One of my main concerns was how to know the timing of when I'd need to move.  I made sure to select an agent who specializes in and has lots of experience with short sales.  The process has been smoother than I imagined and has gone relatively quickly.  We listed the home at the beginning of May, and we received a cash offer on the 1st day that was above asking price.  We just got the bank approval yesterday.  Close of escrow is next month on the 7th, and I have moving day set for the 30th of this month.  My agent and the whole team have been wonderful at communicating and answering all my questions along the way.

Jun 12, 2012 09:46 AM #60
Rainmaker
91,232
Kalene Bagwell
Realty Executives Of Kansas City - Blue Springs, MO
Realtor - Selling Blue Springs - Kansas City Metro

All my short sales have been vacated shortly after going on the market. My last BOA short sale required the sellers to vacate 10 days prior to closing. This will be good to consider discussing when at the listing appointment. I believe that  giving  tenant occupied properties notice at listing would be best in these situations. Most sellers have already stopped making payments anyway so having the property vacated prior to selling would be in their best interest anyway. Tenants can be very difficult to deal with when trying to show a property they currently occupy. Delaying getting a sales contract could be the difference between a short sale and a foreclosure.

Jun 12, 2012 09:57 AM #61
Rainmaker
287,248
Travis "the SOLD man" Parker; Associate Broker
Team Linda Simmons, Enterprise, AL 36330 - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

Good list, along with Satar #43 above.

Jun 12, 2012 10:18 AM #62
Rainmaker
60,414
Sharon Sanchez
Ace Home Realty - Carson, CA
Your Number "1" Source For Real Estate.

Hi Scott.  Great post to get us thinking.  I only had one seller who refused to move prior to closing.  She wanted the move-out money the lender promised her before vacating the property.  Well, we had a few conversations on why she needed to move out before or on the day of closing.  We went over the Residential Purchase Agreement she signed and the lenders letter promising her the move-out money.  Thank God she agreed, moved out on time and took with her what she was suppose to.  Other than that I haven't had an issue with my short sales.

Jun 12, 2012 10:24 AM #63
Rainer
126,003
Monica Hill
RE/Max Associates - Wilmington, DE
the Realtor to help you discover Delaware

I agree with Beverly (#51) about the Sellers having the opportunity to set aside a few dollars. Many of my sellers in short sales haven't been paying the mortage for at least six months, so they've had a bit of time to set aside the money needed to make the move. Here in Delaware, Sellers have right up to closing to remove the contents of their house, so though it might be desirable to do the walk through when the property is empty, it isn't always empty at that time. 

I've never had an issue with my Sellers being out on time for settlement with any of my short sales. Good communication with my Sellers right from the start or when I represent Buyers, verification that the Seller's agent has prepared their client properly, has always led to the house being empty and vacant at Settlement. 

Did have one regular sale (Buyers were my clients) where the Sellers weren't moved out by Settlement (excuses about the moving truck breaking down) so the police were called and the Sellers were escorted out of the house in which they had, by then, become squatters.

Jun 12, 2012 10:42 AM #64
Rainmaker
160,731
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Although your blog talks about a real common issue facing short sales, it doesn't provide any solutions. Being local and experienced with short sales does not help an insolvent seller to suddenly come into the means necessary to move. As a buyer's agent you cannot force the sellers out at closing. Your client already invested time and money on obtaining the property.

You provide no real solutions other than discussing an exit strategy for your sellers. What do you do when they don't have the financial means to move? Not take the listing?

@Travis - Comment 72 - Thanks!

 

Jun 12, 2012 11:15 AM #65
Rainmaker
1,182,164
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

WAYNE having a seller that is informed of the process and when they will have to move ahead of time is important.

CHRIS ANN it is awful for any home owner to be in the situation to be made to sell. Sellers who work with everyone involved have an easier time with the process than those sellers who chose to fight. There is many programs to get the seller relocation money and also how it is reported to their credit.

KEVIN unfortanately most problems arise when the seller was not informed by their agent of how the short sale will work or when they will have to move.

ADAM thank you for your comment

ADRIAN thank you for your comment, it is important to know what to expect to be able to avoid these problems happening at the end of the sale

ADAM the problem is some agents do not do their job and when on teh buyers end it is something to bring up often and try and avoid when it does come time to close.

JENNIFER altough it sounds like the most common thing sellers here in NH are listing with MA companies every day.

KW BARNETT you hit it when planning and constant communication is indeed key

 

Jun 12, 2012 11:41 AM #66
Rainer
136,204
Brent & Deb Wells
RE/MAX Four Corners - Prosper, TX
Your Collin County Realtors

Scott,

Never had this problem. Its why we always go over all the steps and dates. I guess folks in this type of situation can always act out, but there are remidies for that as well.

-Brent

Jun 12, 2012 01:31 PM #67
Rainmaker
389,544
John DL Arendsen
ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Dealer & Developer & TAG Real Estate Sales & Inves... - Leucadia, CA
Contractor, RE Brk, Factory Built Home Dealer/Devl

Good points. Love your blog layout.

Jun 12, 2012 01:37 PM #68
Rainmaker
1,286,270
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I have had similiar problems.  You have to be careful about how you handle those issues.

Jun 12, 2012 04:07 PM #69
Rainmaker
650,437
Stephanie/Bob The Ruiz/Miller Team
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Scott, luckily I have never had that happen on a short sale, but your post is a great reminder.  Thanks

Jun 13, 2012 03:11 AM #70
Rainmaker
394,528
Tni LeBlanc
Mint Properties, Tni LeBlanc (805) 878-9879 - Santa Maria, CA
JD, MA, REALTOR, CalBRE # 01871795

Great topic Scott,

I always encourage short sale sellers to start looking for a new place right away if they can in any way afford it.  It helps them psychologically move on.  Of course, there are always the hold outs, who HATE losing their house to a short sale, and want to stay until the last moment and that of course makes it more difficult in the end.

When I represent a buyer in a short sale my position is the same.  Occupied means no closing.  PERIOD.  And, I personally go over to verify it before my client authorizes closing.

Tni

Jun 13, 2012 08:17 AM #71
Rainer
83,887
Brad Baylor
ERA Coup Agency - Milton, PA

I'm not certain why a short sale should be different than any other closing, with regards to the timeframe the seller has to move out.  He/she is to be out of the property immediately upon settlement unless a post-settlement possession addendum has been signed and agreed upon in advance.  Otherwise, the seller has no legal standing whatsoever in occupying the property after settlement has occured.  Am I wrong about this?

Jun 13, 2012 09:09 AM #72
Rainmaker
284,137
Steven Pahl
Keller Williams Tampa Properties - Tampa, FL
Real Estate Consultant Tampa, FL 813-319-6423

Have never experienced this, however that is what a final walk through is for, preferably the day of closing to insure the sellers are gone and the property is in acceptable condition.

 

Aug 01, 2012 08:34 PM #73
Rainmaker
131,925
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

Kind of a shocker that this is still a problem after years of short sales.  The listing agent obviously should be advising the seller when they will need to be out, and the buyer shouldn't close unless the seller's stuff is gone during the final walkthrough.  Seems pretty simple. 

Jul 30, 2013 09:40 AM #74
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