Answers (8)
Best Answer
- Karl Detlefsen, "Karl W Detlefsen"
- Contributions:256
What area of MN. I could offer you 3-5 good agents is you are lookign in the Metro or south metro areas.
Some agents shy away from Short Sales simply because they are difficult and many of them don't like the extra work that goes with them. There are also many agents that simply don't understand the process and find it very frustrating. The good news is, there are MANY agents that will gladly assist you, and that are very skilled in these transactions.
If you would like some names to call on and ask them some questions, I would be glad to offer those to you.
Everyone that I would recommend to you will be willing to show you only short sales if you indeed wanted to focus your search on them alone.
Some agents shy away from Short Sales simply because they are difficult and many of them don't like the extra work that goes with them. There are also many agents that simply don't understand the process and find it very frustrating. The good news is, there are MANY agents that will gladly assist you, and that are very skilled in these transactions.
If you would like some names to call on and ask them some questions, I would be glad to offer those to you.
Everyone that I would recommend to you will be willing to show you only short sales if you indeed wanted to focus your search on them alone.
- Steve Norris, "stevenorris"
- Contributions:42
The rules for a short sale will be the same anywhere. Negotiating a settlement with the bank doesn't change from state to state. That said, various state Realtor Associations have developed different Short Sale Addendum forms that do have some variations regarding when earnest money is deposited, when inspections are performed, provisions for cancelling the agreement and the like. When you find a MN agent, (s)he will be able to go over all of that.
The concern I would take away from your statement, were we having a conversation about working together, is your motivation to buy. If it's to get a discount, a short sale is not necessarily your best route. Your statement about "back out anytime, no harm done" would raise a red flag to me. The fact is, harm is done. The seller has removed their property from the market based on your offer. Withdrawing that offer causes harm to the seller and accepting an offer from a buyer who isn't committed to closing on that property is a significant risk to the seller. That could be part of why you're feeling resistance from agents.
I would encourage you to have a serious conversation with your agent and your spouse about your goals for the purchase. Perhaps a short sale is the correct route because of your time flexibility, but perhaps you're the wrong buyer for a short sale.
The concern I would take away from your statement, were we having a conversation about working together, is your motivation to buy. If it's to get a discount, a short sale is not necessarily your best route. Your statement about "back out anytime, no harm done" would raise a red flag to me. The fact is, harm is done. The seller has removed their property from the market based on your offer. Withdrawing that offer causes harm to the seller and accepting an offer from a buyer who isn't committed to closing on that property is a significant risk to the seller. That could be part of why you're feeling resistance from agents.
I would encourage you to have a serious conversation with your agent and your spouse about your goals for the purchase. Perhaps a short sale is the correct route because of your time flexibility, but perhaps you're the wrong buyer for a short sale.
- Karl Detlefsen, "Karl W Detlefsen"
- Contributions:256
Michael, I think that is the important part of having an agent that stays on top of things, as well knows that there are right and wrong ways to search out short sales. Such as finding things with a single loan versus a 2 loan short sale. That is just disappointment waiting to happen. As well, if you inform your buyer and they are ready to play the game, that surely helps. Lastly though, the agents need to be timely, a hour after deadline and it is all over.
- Michael Emery, "MikeEmery"
- Contributions:8059
Minnesota law allows for a short sale addendum to be attached to the purchase agreement. The addendum essentially states that the sellers have X number of days to receive approval or the purchase agreement is cancelled. You would still need to have a mutual rescission of the purchase agreement signed by both buyer and seller to cancel the purchase agreement.
The addendum also leaves the option of the buyer not providing the earnest money until the seller has obtained bank approval. In this way the buyer wouldn't be in a position to lose their earnest money should they decide not to go forward with the purchase. But once again a mutual rescission of the purchase agreement would be necessary to cancel the purchase agreement.
The addendum doesn't allow you to arbitrarily cancel the purchase agreement without cause (unless the seller misses the lender agreement deadline). In Minnesota, if you wish to arbitrarily cancel a purchase agreement, it is often done using the inspection addendum. Although some would argue you would need just cause to back out (and not just because it's a convenient way to exit an agreement). The short sale addendum can allow the buyer to postpone inspection until after lender approval (which gives the buyer more time to change their mind).
Many agents choose not to show short sale properties because they may not be familiar with the process, they may not make as much commission from the sale (the sellers bank can often dictate what the agent receives in compensation), or they're aware that only about 30-50 percent of all short sales ever get to closing.
Personally I prefer to show foreclosures as there are fewer obstacles for the buyer, there are more financing options and prices are competitive with short sale homes. But it all depends on the market where you're buying and the availability of inventory. Winter in MN is a tough time to buy a home.
The addendum also leaves the option of the buyer not providing the earnest money until the seller has obtained bank approval. In this way the buyer wouldn't be in a position to lose their earnest money should they decide not to go forward with the purchase. But once again a mutual rescission of the purchase agreement would be necessary to cancel the purchase agreement.
The addendum doesn't allow you to arbitrarily cancel the purchase agreement without cause (unless the seller misses the lender agreement deadline). In Minnesota, if you wish to arbitrarily cancel a purchase agreement, it is often done using the inspection addendum. Although some would argue you would need just cause to back out (and not just because it's a convenient way to exit an agreement). The short sale addendum can allow the buyer to postpone inspection until after lender approval (which gives the buyer more time to change their mind).
Many agents choose not to show short sale properties because they may not be familiar with the process, they may not make as much commission from the sale (the sellers bank can often dictate what the agent receives in compensation), or they're aware that only about 30-50 percent of all short sales ever get to closing.
Personally I prefer to show foreclosures as there are fewer obstacles for the buyer, there are more financing options and prices are competitive with short sale homes. But it all depends on the market where you're buying and the availability of inventory. Winter in MN is a tough time to buy a home.
- Ofe Polack, "Ofe Polack"
- Contributions:3371
First of all, are you going to pay cash for the short sale and if not have you been pre-approved?
- Josh Pomerleau, "PomerleauTeam"
- Contributions:1
Many real estate agents do not show short sales because they do not understand them. At any time we have around 90-100 short sales listed so our buyer's team knows this ins and outs of the short sale process. You can visit our website at [website removed by Zillow moderator] to learn more about Minnesota Short Sales.
- Tim Moore & Rachel Neal, "Outer Banks N C"
- Contributions:1304
If you find an agent reluctant to show short sales than go find another agent since the one you found is too busy to fool with you or they know nothing about short sales and are afraid of them. The rules don't vary that much I am guessing, it is all in how the offers are written. You will be under contract with the seller as soon as the seller accepts your offer. Then the seller submits the offer to their lender for approval. This is where it can take months to get a reply, but since you are in no hurry that is good. The whole contract is contingent on the lender agreeing to the offer, so if you want out just have your agent write up a termination agreement and get it signed. That happens a lot. You just need to find an experienced agent to work with you and let them guide you.
tim
tim
- user7440104
- Contributions:1
email or call this guy, Ben Ditzer [Phone removed by Zillow moderator]
Minnesota - Purchasing a Short Sale Rules
Also, it seems many agents are reluctant to show any houses that are short sales. I understand they may not like the process but I want someone who is willing to work for me. How can I find someone who truly doesn't mind dealing with short sales and isn't just going to show me a couple to pacify my interest?
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