Comments on Naheed Amdani, Attorney: Short Sale Basics -- A Primer

Sounds like the market in Irvine is doing pretty w...

2008-05-30T08:46:00.000-05:00

Sounds like the market in Irvine is doing pretty well!

Thanks. I have a better understanding of why agent...

2008-05-29T22:22:00.000-05:00

Thanks. I have a better understanding of why agents don't like short sales. Having seen the market here, I doubt that a bank will want to or even need to approve short sales (I mean a truly good deal) in the Irvine area.

She is correct in stating that banks are ambiguous...

2008-05-22T22:49:00.000-05:00

She is correct in stating that banks are ambiguous, but the goal of the short sale procedure is to clear those ambiguities up. In a typical short sale transaction, the seller will enter into a contract with the proposed buyer and then submit it to the bank; the contract will be subject to bank approval. The bank may take months to respond, and may either agree to the price if it's reasonable, or ask for more money. But whatever they want, they will let you know at that point. You will not be going to closing with open-ended issues.

Banks may or may not agree to pay homeowner's association fees in a short sale. On the other hand, in a foreclosure, Illinois law requires the bank to pay condominium association fees after they receive the deed to the property. However, the person who buys the property from the bank is responsible for association fees for the six months prior to the bank getting the deed. I am not familiar with California law on this issue.

A lot of real estate agents don't like short sales. First of all, banks are unwilling to pay the full commission; often banks don't even pay half. Additionally, even after months of negotiation, there is no guarantee that you will get the short sale property you have placed an offer on. If you do place an offer on a short sale, it might not hurt to keep your eyes open for other properties in the meantime.

I expressed interest in short sales to an agent he...

2008-05-22T15:07:00.000-05:00

I expressed interest in short sales to an agent here in California, but she highly discourages them. she says that banks are often ambiguous about the final price and throw in last minute costs like back owed HOA fees, for example. please advise.