Ronald S. Cook, Licensed Real Estate Broker

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Short Sales

Why not work with a real estate broker that already understands the legal intricacies associated with a short sale? (See testimonials) Mr. Cook has handled thousands of debt issues for over two decades and has practiced as a lawyer in handling short sale transactions. If you select Mr. Cook as your real estate broker to handle your short sale as your realtor, you receive the tremendous advantage of working with someone that has significant industry experience.

A short sale means the seller's lender is accepting a discounted payoff to release an existing mortgage. When a property is listed with short sale terms, the lender needs to accept the offer. You do NOT have a deal until the lender accepts the offer. Some short sales are priced ridiculously low. So low that the sellers' bank will never accept them. To get your offer accepted, the offer tendered must deemed to be reasonable to the lender.

The listing agent submit the short sale package to the lender and negotiates. The buyer's agent doesn't talk to the bank. The short sale package often consists of:

  • Sellers' hardship letter
  • Tax returns
  • W-2s
  • Payroll stubs
  • Financial statement
  • Bank statements

A lender is unlikely to agree to a short sale unless the seller has no equity and is unable to repay the difference between your sales price and the existing loans. Sellers need to provide a hardship letter to the lender. Sellers may also owe taxes on the amount of debt that is forgiven.

Make your offer contingent upon the lender's acceptance. Give the lender a time frame in which to respond, after which, you will be free to cancel.

Regardless of the commission the seller has agreed to pay, the lender is actually the entity paying the commission. Since the lender is losing money, the lender will likely negotiate the commission directly with the listing broker, who will then share the commission with selling agent.

Copyright Ronald S. Cook, Licensed Real Estate Broker, New York