Frequently Asked Questions From Realtors
How much is owed against the house?
Candidly we don’t normally share that information. While it is interesting, the bank is only
concerned with two main things:
(1) Market Value of the Property
(2) Amount of the Offer
Banks do not make their decisions on how much they are losing in a particular Short Sale
transaction. When a bank takes a home back through foreclosure, they do not turn around and try
to sell that property for the amount they were owed, they simply sell it for what its current market
value is or a small discount below current market value. The same is true with Short Sales.
How do you know the bank will accept our offer?
We really don’t know with 100% certainty that the bank will accept your offer. What we do know, is
that banks are typically willing to accept an offer that is within 90-95% of current market value. We
price all of our listings very appropriately so if your offer is at or very near market value, we feel
confident that if it is possible to get the Short Sale approved, we’ll get it done.
How long does the Short Sale process take?
The actual negotiation/approval process can take as little as 2 weeks or as much as 3 months
depending on the lender or lenders involved. On average most Short Sales take between 60-70
days from the date the offer is presented to the lender to the date of the Short Sale approval. In
most cases, 60-90 phone calls and faxes back and forth between the lender and our team are
required. Once a Short Sale approval has been received from the bank, the Buyer should be
prepared to close escrow within 21 days (although we always try for a 30 day minimum close).
Is there a Foreclosure sale date scheduled?
Foreclosure sale date information is public information and can be found by doing a small amount
of research online. We get numerous foreclosure sale dates extended or postponed every month
so please don’t ever let a sale date scare you away from one of our listings.
Why do you “only” pay 2.5% commission to Buyers Brokers?
While Fannie Mae has acknowledged they will pay 6% commission, there are still many lenders
today that will not pay more than 5% (and others that will tell you they only pay 4% - 4.5%
commission). Please also understand, there are many times where the 1st lender may agree to
pay a 6% commission, but to get the deal approved with the 2nd lender, we have to use some of
the commission to meet their required net. In some cases when we ask for extensions the lender
will deduct 1% from our commission for the extension on the close date. In short, we only pay
2.5% because we’re simply not willing to do all the work involved in getting a short sale approved,
and then only earn 2% or less commission.
When will my offer be presented to the Seller?
As soon as possible! Our typical hours are M-F 9am-6pm, Sat & Sun 9am-5pm and we strive to
acknowledge all offers once we receive them. If in doubt, please call our office to verify receipt of
your offer!
Aren’t you in violation of ARMLS rules to stay active after receiving an offer?
Not at all - because it remains an offer due to our “short sale counter offer” which requires an
additional signature by seller to bind. Please see our “Information on our short sale process” page
for a full explanation of how we process short sales.
Can I know the amount of the BPO?
Most lenders will not release that number, and it can vary in amounts depending on how many
they obtained. Also, the first may have a different value than the 2nd. In short, we will share that
information when we have it, when we consider it to be valid (some BPOs we challenge), and
when appropriate.
Can my buyer be the only buyer submitted to the lender?
Yes, by making the earnest money non-refundable and with the seller’s agreement. Please see
our “Information on our short sale process” for an explanation.