Since Short Sales etiquette is not included in the Emily Post’s Etiquette Daily, I thought I would share a few things I have learned and observed the last 2 years that short sales has become a regular part of my real estate business.
First lets set the stage a bit.... A Short Sale takes place when one or more lien holders (banks) agree to release deed/mortgage note for less than is owed on the property. The banks always lose money on short sales. The seller almost always walks away with NO money. I have seen people who have made mortgage payments for 7 years, put a 10% down payment on their home and have not re-financed walk away with no money after a short sale. It doesn't feel good to be one of these homeowners. Put yourselves in their shoes - it sucks.
That being said, I have a few recommendations to observe when working with home owners that are selling their homes in a short sale situation.
- Make an extra effort to view a home advertised as ‘short’ or ‘pre-foreclosure’ when the occupants are not around. They don’t want to talk to you.
- If you happen to run into owners or occupants/tenants while viewing a home advertised as a ‘short-sale’ Don’t ask them any questions. If it’s a tenant, they might not even know that the owner is selling short and the owner might not be ready for them to know that yet. If it’s an owner….they are losing their home, this is not the time or place to ask questions. Have your buyer’s agent discuss details with the owner’s listing agent. Don’t put the owner on the spot to discuss details of their uncomfortable position.
- Just because someone is selling short, does not mean that they do not deserve the same curtsey when scheduling appointments, keeping appointments, locking up and leaving your business card.
- When writing a contract, DO NOT ask for any of the owners personal property including appliances, furniture, lawn equipment, etc. Don’t add insult to injury – they are already losing their home don’t ask for the few personal items of value they DO get to take with them.
Do you have a right to ask questions and find out specifics about the situation of the homeowners' situation? If you are a consumer/buyer – you have the right to ask your agent. If you are an agent you better ask questions! Don’t ask the owner though, ask the co-operating agent. You need to find out some specifics regarding how many liens, amount and status of the liens, who holds them, at what stage the paperwork is in, if a BPO has been done, what documents have been sent to the bank etc…that is your job and you better do it – via the listing agent.
If you have additional items of etiquette for us to consider please leave a comment.
Thanks for reading! ~ Tiffany