Buying a Sacramento short sale will definitely become easier and easier in the next several months as the process will continue to evolve, change, and morph into a more traditional transaction; Sacramento Short Sale Agents, Sacramento Short Sale Specialists and Short Sale Teams in Sacramento will be around for a long, long time in Sacramento.
Buying A Short Sale
However; your Short Sale Buyers Agent– if they are at all experienced with with todays market- will know that there are some short sales will never close! Secondary Mortgages (any Junior Liens) that have been added after the purchase or have been refinanced (any non purchase money loans) are full recourse in California– the first will go away with the house– no matter what; if it goes to foreclosure, closes as a short sale, whatever… but non-purchase money seconds may stay intact and become non-secured debt, no matter what!… just like credit card debt. It can follow the seller for up to four years. Banks know this and want to hold the first lien holder, the homewner and the agents “hostage” and demand payment.
We have even had several second lienholders, who had been discharged in bankruptcy, hold us hostage, even though legally, thay cant! But they know they can get away with it…
Some people are also looking for a short sale lawyer in sacramento for buyers…
Short Sale qualifying is just asking questions; the right questions will allow yor agent to find shortsales that have a high chance of being approved: Your Short Sale Specialist will find out things like: 1) The Kind of loans involved; recourse or non-recourse. 2) If recourse; the sellers (think homeowners) financial situation, hardship status and/or their willingness/ability to make a contribution, sign a note, or otherwise pay off any secondary note holders demand (which may be full recourse). 3) Which banks are involved and their policies regarding first liens, secondary liens, recourse debt, hardship rules etc. 4) Know the market, the absolute market value of the home– (banks don’t like to leave money on the table) what the Broker’s Price Opinion, or Appraised value of the home will be and the amount of money the first will be short; and the policies of each bank involved–If you don’t know these things gong in, you will find them out during the process, usually weeks or months into the short sale process… Many, many times, the short sale you have fallen in love with and cannot live without may very well become an REO.
There is also the chance that your short sale will, at the eleventh hour, be stopped by the seller, or not approved because the banks or servicers suddenly want to include language stating the seller agrees that the lender has the right to pursue a deficiency judgment or the balance unpaid on the promissory note… Many homeowners, when they realize this problem is not going away, file bankruptcy– again, at the eleventh hour- after you and your family have been waiting months for the home of your dreams.Make sure your Buyer’s agent is also a Sacramento short sale listing agent and a Sacramento Short Sale Specialist and works with a team that specializes in these complicated and ever-changing transactions! Short sale negotiating is definitely a moving target– it is nearly a full-time job just to stay on top of educated of all the different banks, servicers, secondary investors rules of procedure and the institutional/political policy changes.Some short sales will never close! Find out why!By the way…here’s where I remind everyone that I am NOT a lawyer, and that if you have any questions or concerns about your legal situation– get an attorney! I have several great Real Estate Law, Mortgage Law, Contract Law and Bankruptcy Law specialists that I can refer you to!