• Welcome

    Contact Ryan to begin searching for your dream home today!

    Whether you are buying or selling, Ryan is dedicated to providing a smooth real estate experience.

  • Ryan Halset, ABR reviews
  • Blog Stats

    • 28,691 hits

Common Short Sale Mistakes – Seattle Real Estate

As most buyers and sellers understand these days, the short sale process is much more complicated (and lengthy) than a traditional real estate transaction. There are a number of decisions along the way that can help move along smoothly or help a deal fall apart. I am putting together a series of blog posts about the common mistakes that I see, and advice on how to avoid them.

Mistake #2: Assuming that the short sale approval means you don’t have to pay anything back to your lender. 

The goal is to always negotiate a short sale with a borrowers lender for “satisfaction of seller’s debt”…meaning that the seller is not on the hook for the difference between the accepted sales price and what they owe.

However, this is not always a given. The short sale approval letter needs to explicitly state that the lender is agreeing to waive all rights to the deficiency. Make sure and clarify any language with your real estate agent (or negotiator) before you sign anything. You want a “full debt satisfaction” and not just a “lien release” which obligates you to pay back a portion of the debt owed.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: