Is Everyone Using A Disclosure Transaction Form With Your Short Sales?
I just wanted to stress the importance of using a disclosure transaction when doing short sales to protect you from anyt liability in the event that the property forecloses while you are attempting to secure the short sale. It also protects you in case the lender pursues a deficency judgement against the homeowner. I've spoken to several investors that will not do a short sale unless they have this form signed and notorized. I have a hardcopy of the form that I duplicate but hopefully someone has the Word document floating around. I would highly recommend using it for your future deals.
That's a good point... but even if the release from liability is signed it's no guarantee that you can operate with immunity... the Court can still determine and fix liability on the "professional" who took unfair advantage of the Homeowner.
Unless, of course, the Homeowner had the opportunity to have the Release reviewed by an attorney, and that opportunity was articulated very clearly in the heading, body, and closing of Release.
[addsig]
Can you map out in a few steps how to put a short sale together and with whom?
I would really appreciate it?
Toska :-D
You have a good point, however having this form in writing does go further than a verbal agreement. It also gives you a pyschological advantage because the homeowner is aware of these points and is less likely point the finger at you when something happens outside of your control. Remember, most of the time you are helping the homeowner out of a highly stressfully and complicated situation and anything that you can put in place to outline all expecations is beneficial to both you and the homeowner.
Short sales happen when you negotiate with a lender to purchase a property from a homeowner at an amount below the current mortgage balance. You are more likely to secure a short sale when the homeowner is facing foreclosure or has a hardship (ie: divorce, loss of job) that keeps them from maintaining the mortgage payment. As an investor you become the liason between the lender and the homeowner and you submit a short sale package to the loss mitigations department requestinga discounted payoff. Your objective is to create equity by acquiring the property below market value and either holding on to it as rental property, selling it another investor, or even keeping as your own personal home. I enjoy doing short sales and find that it is a very low risk but profitable investment strategy once you master the techniques. There are several courses available that will break down the process in a more detailed manner, this is just a snap shot.
Could you send me or provide on this post the text of such a disclosure form? I am working on my first SS right now and do not have such a form.
Thanks.