Making Your Own Short Sale Rules

By
Real Estate Broker Owner with Mint Properties, Tni LeBlanc (805) 878-9879 CalBRE #01871795

Making Your Own Short Sale Rules

It only takes a few people breaking the rules to make things worse for the rest of us.  Today, I took my puppy, Etta, to the dog park for the first time.  There was a tremendous lead up to this event. She had to receive every one of her required shots, have flea and tick treatment applied, get her a dog license, be fixed, and I had to let her wounds heal for two weeks.  So, I was really looking forward to our first trip and to giving her an opportunity to finally mingle with other dogs.  Both local dog parks (Woof Pac Park and Rice Ranch Community Dog Park) have a small dog area and a large dog area.  However, inevitably some inconsiderate person believes that it is okay to bring their large dog to the small dog side.  Usually, they tell you “it’s a puppy” or “”my dog is gentle as a lamb,” as their rationale for obviously being on the wrong side of the park.  

Now the sign doesn’t say “For Small and/or Wimpy Dogs” or “Teeny Dogs and Overgrown Love Bugs Only,” it says “Small Dogs” and “Large  Dogs.”  I suppose a medium sized dog owner could get a little confused, or maybe they would be inspired to petition the city/county for “Medium Sized Equal Rights.”  But, I digress.  Clearly, if your dog weighs, say 50 pounds, and all the other dogs weigh less than 10 pounds, maybe, just maybe, you are on the wrong side of the park.  And, perhaps if your dog can’t make it on the big dog side even though they are in fact, a big dog, maybe they just aren’t doggie park material.  There I said it.  After following so many rules before even bringing my dog to the park, it was beyond annoying to have her first doggie park visit cut short by a huge and overly friendly pit bull mix whose owner had no regard for the rules.

In a way, short sales are similar.  Most people jump through a lot of hoops to get a short sale and they have to follow a lot of rules to get to the finish line.  Recently, I was contacted by a man who wanted to know whether it was ok for him to short sell his home to an investor, rent it for a couple years, and then buy it back.  I told him that it was probably not ok -- that his particular bank would make him sign an addendum saying he wasn’t in fact doing that very thing.  And, unless it was disclosed fully to the short sale lender, it would be fraud, and very easily discoverable fraud too since his address would remain the same and his name would go back on public records in a couple years.  He explained that, he really didn’t want to move, that his circumstances were special, and that he felt it justified him being able to participate in this improper scheme.

So, I explained to him that maybe, just maybe, a short sale is not for him.  Generally speaking, a short sale is for someone who is willing to move out of their house after the short sale is complete.  A short sale is for someone who wants a fresh start.  A short sale is not for someone who wants to ignore all the rules.

I suppose this is the reason why short sale sellers have to sign affidavits under penalty of perjury stating that they will vacate the property after the sale, that there are no hidden and undisclosed agreements to rent back the property, and why I have to deal with negotiators who are suspicious of short sale fraud at every turn.  Because no matter how many signs are posted, some people just think the rules do not apply to them.

Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced local short sale agent. If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home and would like a short sale consultation, please call my office to schedule a meeting or a telephone consultation at (805) 938-9950.

Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE), Short Sale and Foreclosure Resource (SFR) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.

* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement.

Copyright© 2012 Tni LeBlanc *Making Your Own Short Sale Rules*

Posted by

Tni LeBlanc, Broker
(805) 878-9879 mobile/text

tni@mintprop.com
www.MintProp.com
CalBRE #01871795

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Rainmaker
248,394
Jeff Pearl
RE/MAX Distinctive / LIC in VA

Those are the same type of people who will work with " investors" and half way destroy their properties thinking they'll be able to sell it cheap to the investor, and also buy it back cheap. These type of "investors" usually also ask for permission to negotiate the short sale deal with the bank. Unfornatunely, many short sale agents /" experts" also think they can make up their own short sale rules, so foreclosures continue and continue.

August 23, 2012 10:07 AM
Rainmaker
385,674
Tni LeBlanc
JD, MA, REALTOR, CalBRE # 01871795
Mint Properties, Tni LeBlanc (805) 878-9879

Pat, Ben and Martin - That's right!

Jeff - I thought this type of scheme had gone away.  But sadly it hasn't.  I think about this stuff every time a bank comes up with yet another ridiculous certification or affidavit for my clients to sign.

Wayne - I agree. If they are doing these deals legitimately -- great!  However, I would be very wary of getting involved with this type of arrangement.  When you stand to gain, it's hard to argue that you are innocent.

Hi Katerina - Thanks for stopping by!

Jim - Well they sure make things harder for the rest of us!

Christine - That's true.  I actually think they should allow something like this.  And, there are talks of making this possible, etc.  After hearing what I had to say this guy actually hung up on my face.  So, I suppose he really didn't want to hear about any of the risks.

Jeff - It is unfortunate.  There are always those who are scheming!

 

August 23, 2012 10:55 AM
Rainer
71,505
Bas Panch
SCV Home Buyer

Hi Tni,

I just have to say how much I truly admire your writing skills. You always tell a compelling story, and your down-to-earth style and analogies make real estate and short sales easy to understand for average people who may not know a lot about either topic. Really awesome. Keep up the good work as a top Santa Maria short sale agent!

August 24, 2012 08:49 PM
Rainmaker
581,499
Petra Norris
Realtor, Lakeland FL Homes for Sale
CDV TransAtlantic, Inc.

Great story here Tni.Sad to say but there will always be someone who will not follow the rules.Great Feature! Keep it up being the best Santa Maria Short Sale Agents. 

November 14, 2012 06:31 AM
Rainmaker
1,752,965
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

Anyone cosnidering a short sale in Santa maria should hire you as their agent. You are the expert.

June 30, 2013 04:29 AM
Anonymous
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Rainmaker
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Tni LeBlanc

JD, MA, REALTOR, CalBRE # 01871795
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