Everyone has their own style in real estate....and as long as you are working within the confines of the law....whatever method you choose that works is the one that you use.
We have done short sales for years....for years it was...and sometimes still is, an essential part of our divorce niche. Our way of doing them is not how everyone does them....for us, it has proven to be the way that they close...and there is a new beginning for our distressed sellers and a happily ever after for the Buyers.
We worked with an attorney to write an addendum which our Sellers require with each offer. It is called Addendum PRN and it states very simply that the inspection and earnest money timelines run from the Sellers' approval not the Lender's...and it is non negotiable. The addendum is a document in MLS, the instructions are in the private remarks that this must be included with the offer. If this is not an agreeable condition to the Buyers, they need not write an offer.
WHY Addendum PRN ? If we wait until the Lender approves the short sale...in hundreds...only one has not...60ish days (depending on the lender) will have passed. During that time...the Seller believes they have sold the house and the Buyer believes that they have one. If an inspection is done 60 days after the Seller accepts the offer and there is a defect found that the Buyers feel is reason not to continue with the transaction...everyone just wasted 60 days. Selling agents occasionally object..."What if the short sale is not approved by the Lender and my Buyers spent money on an inspection ?"
Since that has happened exactly once ....less than one per cent of the short sales we have closed....we explain that we don't believe that is a concern. We explain that when an agent calls us before writing the offer. Still, this particular does not choose to follow our procedure and demands that our divorced Sellers counter or reject the offer. Countered it is...and now you have wasted everyone's time...disturbed already distressed Sellers to satisfy I am not sure what....What I am sure of is that Addendum PRN will always be a part of our short sale listings...Buyers and Agents can like it or leave it...it does not matter to us or the Sellers who have put their trust in us to get the transaction closed.
Buyers don't rule in a short sale....Agents who advise their clients not to "play by the rules" that the Seller or in some cases Lender, has established ...aren't working for the Buyer. The Agent's ego precedes the happily ever after that will never happen with closing on the property....unfortunately.
If you or anyone you know in southeastern Wisconsin is unable to pay their mortgage for reasons of hardship...Call the Hansons, we are honored to be of service.