Doug Francis | Realtor

  • Our Business
  • About Me
  • Home Sellers
  • Contact

Another Short Sale Road Block

September 3, 2010 By Doug Francis

Scanned image of author's US Social Security card.

Image via Wikipedia

Yes, even in swanky Vienna, VA there are real estate short-sales.

As the process has been allowed to pickle over the last few years, banks have come up with strategies to streamline the process. That sounds like good news but I still have to advise home buyers that these are tricky transactions that will require patience and some hard work.

I say tricky because real estate short sales are never “final” until the current mortgage lender “approves” the HUD-1. Yes, I am talking about the HUD-1 that you will get on the day you close or settle on the property. If they need to make a change or don’t approve it then you may have to wait a day or two.

Wait? But my lock will expire!

Here is my advice for home buyers: Make sure your interest rate lock doesn’t coincide with the planned closing date. If you have to change your rate or lock, then you may be subject to the “cooling-off period” mandated in the HUD guidelines. You are responsible for knowing about this.

Yes, Vienna Real Estate does feature short-sales

Recently some friends of mine bought their rental home in Vienna when it was offered as a short sale. From my point of view the situation looked grim because the next step by the bank is foreclosure, but the deal went through and they purchased the home. Yes, a percentage actually work out.

But some clients recently put in an offer on a Vienna townhouse listed as a short-sale, and that negotiation was a slightly crazy experience. It seems that the streamlined Bank of America short sale system known as Equator required some extremely sensitive information be submitted with the offer. This information included the buyer’s Social security number and date of birth. Say what? They were already submitting a Wells Fargo approval letter based on a credit report, so are they planning to pull credit too?

I used to work for a Fortune 100 listed company that had “work-flow” procedures in place, so I understand why B of  A would implement a “work-flow” system to speed up short-sale transactions. My problem is that this requirement was a non-negotiable requirement of the submission process.

Please beware of the advice that I saw on the Internet to just “make-it-up”. Making information up is called “fraud”, and fraud will land you in jail.

You must have their Social Security Numbers?

Sharing this type of confidential information was just a little too much for me to stomach. I advised my clients to tell B of A to take a hike and move on to another property. Identity theft is a huge problem and consumers need to do their best to control who they give information to. Equifax is a credit monitoring company and I suggest reading their advice and blog if you have questions about keeping your confidential financial information secure.

There is a lot that is up in the air in a short sale transaction because the seller is asking the bank or mortgage holder to agree to sell at a loss (and banks hate to show a loss). Many short sales do work out but remember to understand your contractual obligations, watch the “lock” on your mortgage rate, and know that your deal will be up in the air until the seller’s lender approves the HUD-1 just before your closing.

(Update from original post: As we were hashing out the details on the short-sale offer that was the inspiration for this blog post, the listing agent called to tell me that the bank had foreclosed on the house. This situation is not unusual because the seller will have only a short time to try and salvage their reputation before the bank decides to cut their losses. At this point, the house is the responsibility of the “trustee” and sooner or later will wind up in the bank’s REO Department.)

Related articles by Zemanta
  • Short Sales, When the Bank BPO Is Out of the Ballpark (agentgenius.com)
Share this with a friend...Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestEmail this to someone

Filed Under: Blog, Home Buyer Tips Tagged With: buyer agent, short-sale, Vienna Virginia

About Doug Francis

A Realtor specializing in unique and new homes around Vienna, Virginia, Doug started writing a first-hand blog about his everyday real estate experiences a decade ago. In depth, helpful and fun has always been the objective. Outside real estate, he "starred" in a tech commercial for Verisign's "Where the World Clicks" campaign, and was quoted in Money Magazine's Best Places to Live article on Vienna. He's a Boston University graduate who feels morning coffee is non-negotiable.

Being able to guide my clients through many real estate sales, either moving out, moving in, or just across town, has been a rewarding experience that helps when discussing a plan with a future client.

Being able to help them focus and understand our proven sales plan always eases their anxiety of this looming personal task. And, putting it into bite-sized steps always helps them get where they really want to be.

My background… I’ve been an active licensed agent in Virginia for 25 years, work at TTR Sotheby’s International Realty in McLean, and sell homes in all price ranges. I donate to the town tree replacement fund, participate in a neighborhood citizens association, and try my best to stay in shape.

Questions? Email doug@dougfrancis.com or call me at (703) 304-6827 to discuss your plans. Cheers!

Thinking of Moving?

Let me know if you want to talk about your house and getting it ready for the market. Let me know if it's a second opinion, it's okay. Start here and let's talk.
  • This field is for validation purposes and should be left unchanged.

Have a question?

Homeowners: Add a level of privacy

name withheld by request

Privacy: Remove your name

Looking for testimonials?

Read through a collection of client comments originally posted on Zillow, Google and Trulia. See what my clients say...

Looking for a Custom Home?

Insights into New Homes in Vienna VA
Home project during pandemic

It’s Okay! Pretend like you’re Getting Ready to Sell

Right now, having a do-able home project may be just what you need to reduce your stress levels. Really, it’s okay to pretend a little while improving your home and current lifestyle. Putting together plans to help my clients prepare their homes to appeal to the Vienna real estate market is always fun, but, these […]

“Doug nailed it! Within days, we had three offers, one of which not only met, but far exceeded all of our goals.”
– R. Pollard

“He truly was a partner integrating us unto the community and made it easy for us to take advantage of all Vienna has to offer.”
– A. D’Eredita

“We are so thankful we found Doug to guide us through the complex home selling and buying processes!”
– Scott and Jennie

About Doug Francis

I am a Realtor with TTR Sotheby's International Realty® just outside Washington D.C. in Northern Virginia. I have been a full-time Realtor licensed in Virginia since 1991, and cover a big territory specializing in the Vienna real estate market and custom homes for sale.

I have unique knowledge of digital real estate marketing ~ and my marketing starts here. My elite clientele has been attracted to my results-oriented strategy for years, and I am accepting new clients now.

Thanks for reading... and feel free to contact me at 703-304-6827 or send me an email at doug@dougfrancis.com anytime!

Search for a subject

Contact

Doug: (703) 304-6827

TTR Sotheby's International Realty
6723 Whittier Avenue McLean, VA 22101

Office: 703-319-3344
Why do people hire me?

Search for homes in Vienna

Vienna Real Estate Guide

Logo for Washingtonian Best 2020
This material can only be used with written permission from Doug Francis, Realtor. Copyright 2020

Equal Housing Opportunity

 

Copyright © 2021 · Minimum Pro Theme on Genesis Framework · WordPress · Log in

Deciding where you should start is often the most complex decision when planning a move.

I help my clients achieve their real estate goals starting with a plan.

Let’s talk, and give your dream a deadline.


Please know that we don’t share your phone number, email or any other information you provide.