Posted by daveh on May 14, 2004 at 07:42:04:
Scott – I think you’re putting the cart before the horse here regarding short sales. Work on getting the sort sale approved first with the lender, then worry about getting the deed. I know some gurus tell us to get the deed at all costs but I think you’re adding a lot of risk to you yourself.
Look, it’s true that if you get the deed and can’t work out a short sale the seller is probably in no worse shape than before. But you’ve got an un-sophisticated, emotionally distressed seller under a lot of pressure. If you take the deed they are going to think you are solving their problem on the spot – regardless what your CYA paperwork says. If you don’t get the SS done and you walk, the seller is going to be confused and angry – not a good situation for you.
I always tell my SS clients to continue to try and sell the house while I work on the SS in parallel. If they can sell, refinance or whatever I have a clause that lets them bail on our agreement. If it’s in their best interest why not? We should be in business to help folks whenever possible and sometimes that means not completing our transaction.