Doug Francis Real Estate

  • About Doug
  • How I Sell Your Home
  • Case Studies
  • Let’s Connect

Another Short Sale Road Block

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)

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

About Doug Francis

A seasoned Realtor specializing in unique and new homes around Vienna, Virginia, Doug has seen consumer behavior, negotiations and communication styles change. At his original brokerage, he was the first agent to add an email address. Imagine! Outside real estate, he plays tennis, is a Washington Capitals fan, spends time with Skipper (his dog), and enjoys the restaurant scene in the DCA. He's a Boston University graduate who feels morning coffee is non-negotiable.

Vienna real estate agent Doug Francis

When we bought our house in Vienna, we were thinking about raising the kids, building an addition, and knowing the neighbors. Today, home buyers are attracted to Vienna because of the sense of community, walkability, and small town lifestyle.

So, what’s next after your 25 years? It’s a conversation many of my clients are having with me as they plan to move to the beach, travel, or get closer to grandkids. Helping them see their future, sell their current home, and move ahead with their updated plan has been an interesting new chapter.

My background: I am an active licensed agent in Virginia, have negotiated hundreds of sales contracts, work at TTR Sotheby’s International Realty in McLean, and still sell homes in all price ranges. I donate to the Town of Vienna tree replacement fund, participate in a neighborhood citizens association, and try my best to stay in shape.

Let’s discuss your moving plans: Email doug@dougfrancis.com or call me at (703) 304-6827 .  Cheers!

Considering selling your home?

https://youtu.be/0ZSodCtsfkY

Just Sold!

Plum Street home with swimming pool

Looking for a house with a pool in Vienna, VA?

Sold!

https://vimeo.com/1003798838?loop=0

Planning to sell your home?

Case Studies

Continue Reading

Have a question?

Homeowners: Add a level of privacy

name withheld by request

Privacy: Hiding 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
Staged kitchen for real estate marketing

Here’s my home seller checklist… imagine you’re Getting Ready to Sell

Getting started is the hardest part for many clients. My Vienna home seller checklist will help you get the ball rolling today.

“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'm licensed in Virginia with a focus on Vienna, VA real estate since 1991.

That deep knowledge is valuable, especially in today's fast-paced market where advice is critical. Although many of my clients are personally referred, I am available to help you too and am accepting new clients right now.

Feel free to contact me at 703-304-6827 or email me 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

This material can only be used with written permission.

Equal Housing Opportunity

 

Copyright © 2025 Doug Francis · Minimum Pro Theme on Genesis Framework · WordPress · Log in