Short sales are easy if everyone knows the rules up front.  Of course the #1 rule that always applies to short sales is that Patience will be rewarded.  Listed below are some of rules that may apply and have written another report on How to buy or sell a short sell on Hilton Head.  If after reading these rules you have others that you would like to contribute, please email us at robbie@robbiebunting.com.  

Rules for a short Sale

  1.  A contract is more important than the price on it ~ Reasonable is the key to this one.  Keep in mind a short sale can take months to finalize, therefore the price the buyer offers needs to be a price that holds them into the deal for the next few months.  If the diamond turns to glass the deal will die.
  2. Let the bank negotiate price or commission~ Banks determine value through BPO’s(Broker Price Opininions) therefore a seller should accept a contract that offers good terms and in most cases let the bank negotiate or counter any offers on short sales. 
  3. Seller’s need to co-operate with the requests from the lender ~ Unwinding a short sale is the same as making application for a loan, there is paperwork required of the seller.  If a seller co-operates with the short sale negotiator the process will move much faster.
  4. Buyers need to get their inspections done in the first two weeks ~ Short Sales are sold “as is” which means the seller and or the bank are not fixing anything.  Buyers need to have a CL-100 and a home inspection contingency in their contract and complete both of these at their expense in the first two weeks of the contract. 
  5. Buyer’s need to be patient ~ This is one of the most important factors in a short sale.  Buyers cannot leverage, negotiate or push the banks.  Banks are managed by committees and the short sale process is a slow and very uneventful one until the last 60 days.  Banks do not care if a buyer pulls out.  Stay the course and your patience will be rewarded
  6. Some banks are easier to work with than others ~ All banks are not the same.  Seller and purchasers should contact their negotiator to give them some expectation of time frame as some banks simply move faster than others in most cases.
  7. Don’t worry about the commission and closing costs ~ Sellers do not have to show up with a check for closing costs in most cases, as these fees are negotiated and paid by the bank on behalf of the seller.
  8. Properties with first and second mortgages can be sold in short sales~  Don’t worry if you have a first and second.  Each require negotiation, but multiple mortagages do not prevent a short sale.
  9. Short Sales can be a better alternative than foreclosures ~ In most cases a short sale may offer more benefits than foreclosure.  Sellers should consult their attorney, short sale negotiator or Realtor.
  10. Get an education and Hire an Expert~ If you are a seller or buyer, there are currently short sale specialists that can assist and guide you.  We have short sale negotiators for buyers and sellers.  These specialist have the tools and day to day abilities to succesfully negotiate a short sale.  Why become the expert, when you can hire one?

If you are a buyer or seller interested in a short sale, this short sale list is always up to date with the most recent short sales on Hilton Head Island.  If you are a seller and are wondering what a short sale is and how you can benefit, shoot us an email at robbie@robbiebunting.com or call us toll free at 800-932-3652.