looking for agent recommendations

[2bindenver]

I don't think it is ever "better" to foreclose than to try to do a short sale. Not for the owner or the bank. I had an offer for $120,000 on a house, the lender said no "it doesn't fit our guidelines" to the sale and sold it 7 months later for $100,000 by the bank.

It is a good idea to seek out a Realtor who has experience in processing short sales. I have done (as in completed and closed) 8 in the last two months, I have approvals on 3.5 more (waiting for the second's approval) and have 20 more in the works.

[RonAriba]

Originally Posted by 2bindenver

I don't think it is ever "better" to foreclose than to try to do a short sale. Not for the owner or the bank. I had an offer for $120,000 on a house, the lender said no "it doesn't fit our guidelines" to the sale and sold it 7 months later for $100,000 by the bank.

It does not matter to the bank only got $100,000. They did not lose anything. The remaining outstanding mortgage balance is covered by insurance. If the bank accepts the short sale, FHA insurance will not cover their loss.

Originally Posted by 2bindenver

It is a good idea to seek out a Realtor who has experience in processing short sales. I have done (as in completed and closed) 8 in the last two months, I have approvals on 3.5 more (waiting for the second's approval) and have 20 more in the works.

Looks like you are an expert and know what you are doing. Do the Banks/Lender try to cut your commisiion on the deal? What percentage of the deals are you able to complete. More or less than 50%?

[2bindenver]

Actually a lot of my shorts sales were 80/20 loans - no mortgage insurance!

I have lost two so far to foreclosure.

Yes, they cut my commission most of the time, but sometimes they will let the short sale processing fee stand...

Ocwen tells you upfront they will only pay 4% commission total. That's a lot of liability for a 33% pay cut on each side of the deal.

[RonAriba]

Two other issues you might want to keep in mind:

The I.R,S will consider a short sale on investment property a forgiveness and will be taxed as ordinary income. Also, if this is your primary home but you took out a second, that is considered ordinary income in a short sale for income tax purposses. Check with your CPA.

There is no guarantee that a lender who accepts a "short sale" will not legally pursue a borrower for the diffenence between the amount owed and the amount paid. In a few states, the amount is known as a deficiency.