Short sale process

NEW -> Contingent Buyer Assistance Program
The approved short sale will have a note that looks like this, after all is said and done.
I've blocked out the personal info for obvious reasons.
Good agents will get you to this point sooner rather than later.

Good luck,
-IR2

ShortSale.JPG


 
octrends said:
Thanks USC/IR2.

I was trying to find that how to look for liens against the property and found this link to look for deeds on the OC recorder site.
http://cr.ocgov.com/grantorgrantee2/welcome.asp

Is it correct that all the liens will be recorded at the OC recorder office and i can go and see at the clerk office.
Click to expand...

Much easier to call your title officer.  You can find details on the liens against the property and any info through a GI on the owner.

How does this influence what you should be concerned with; namely the price you're willing to pay for the property?  Or are you trying to identify short sales before they go to market?
 
octrends said:
Thanks USC/IR2.

I was trying to find that how to look for liens against the property and found this link to look for deeds on the OC recorder site.
http://cr.ocgov.com/grantorgrantee2/welcome.asp

Is it correct that all the liens will be recorded at the OC recorder office and i can go and see at the clerk office.
Click to expand...
Remember that any liens on a short sale transactions will need to be taken care before your lender will fund the loan and the title issues a clean title policy.  If any unforeseen liens pop up after the closing of the transaction, then you will have a claim against the title company.
 
Quick update, mid June we got the short sale approval from bank and I closed it last week. Everything went smoothly. Since it was a short sale, I wanted to make sure everything goes as smooth as possible. I met USC as well to learn about all the possible scenarios to make sure I understand and prepare for any kind of worst scenario. USC did explain me each and everything very clearly, what to look for in the closing documents, title docs, various disclosures, eviction process in case seller don?t move, changing locks etc. I requested our agent who was same for seller as well, that if possible I would like seller to move out prior to closing and surprisingly they did move out 2 days before the closing date, though I had signed all of my loan and closing docs before their move. I got the keys on the closing day. As suggested by USC, I changed the locks on the same day.

While working on this, I learned a lot about short sale process, but the most difficult part is to find out whether seller is really motivated to sell or just buying a time since they don?t have much to gain.

BTW I found this property myself though I had my own realtor, but after 1 month I realizes that I have to take the charge and found 2-3 pending/expired properties and started working with the seller?s agent instead of my own.  Also If somebody doesn?t find any property in the active listing, make sure u look at the expired listing as well and see if the owner is still interested to sell.

I really would like to thank USC for meeting me and explaining each and everything in detail though he wasn?t representing me. Definitely I owe him a lunch.
 
Thanks for the update.

I have a question about the offer... did you offer list, below list or above list? And how did you come about that number? I'm not asking for the amount... just wondering what your process was.

In the ones I have heard about, one guy offered above list, but the selling agent said to offer below list and it was approved (weird huh?). In the other, it was already approved from a previous buyer at list but because it was way below the appraisal, the bank balked and wanted a higher offer. The owner showed that there was $X amount in work that needed to be done to make the house sellable so the next buyer offered the appraisal minus the $X amount and was accepted.
 
In this case, listing was in pending status for a long time and i contacted agent to findout what's going on. he told me he can entertain my offer but it cannot be lower than X. where X itself was lower than the listing price. I accepted it and we signed the contract.

In one of my friends short sale case, he put an offer above the listing price since agent already had 3 offers at the listing price and he got the house by going above the listing price.

It seems that each short sale is different and depends on many other things.
 
It seems that it's easier to use the listing agent for short sales but I would not want to cut my own agent out of the deal for a few reasons, the most important of course making sure my concerns are being looked out for.

Both of the examples I listed above had their own buyer's agents so that leaves me hopeful... but I just hear too many stories of short offers not even getting in front of the bank because of either multiple offers, preferences or deals.
 
octrends said:
Quick update, mid June we got the short sale approval from bank and I closed it last week. Everything went smoothly. Since it was a short sale, I wanted to make sure everything goes as smooth as possible. I met USC as well to learn about all the possible scenarios to make sure I understand and prepare for any kind of worst scenario. USC did explain me each and everything very clearly, what to look for in the closing documents, title docs, various disclosures, eviction process in case seller don?t move, changing locks etc. I requested our agent who was same for seller as well, that if possible I would like seller to move out prior to closing and surprisingly they did move out 2 days before the closing date, though I had signed all of my loan and closing docs before their move. I got the keys on the closing day. As suggested by USC, I changed the locks on the same day.

While working on this, I learned a lot about short sale process, but the most difficult part is to find out whether seller is really motivated to sell or just buying a time since they don?t have much to gain.

BTW I found this property myself though I had my own realtor, but after 1 month I realizes that I have to take the charge and found 2-3 pending/expired properties and started working with the seller?s agent instead of my own.  Also If somebody doesn?t find any property in the active listing, make sure u look at the expired listing as well and see if the owner is still interested to sell.

I really would like to thank USC for meeting me and explaining each and everything in detail though he wasn?t representing me. Definitely I owe him a lunch.
Click to expand...
Congrats on your purchase.  It was a pleasure meeting you and I'm glad that everything went well with the purchase.  No need for thanks, I'm glad that I was able to answer your questions.  One of my buyers is targeting the same Village (Plan B) and I'll have to get a little creative to find them a home. 
 
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