I just got an email notice on my association listserve advertising a short sale. Do you, or have you, advertised a listing as a short sale? And if so, do you do anything special like contact the bank first to ensure that this does not affect the "appropriate marketing"?
This is something I know will come up for many of us in the future.
Thanks

When you say "appropriate marketing" do you mean possible "false advertisment"?

No, as I understand it one of the sticking points that the lenders have before approving a short sale offer is that it has had "appropriate marketing" before the short sale offer. The bank needs to know that you tried.
Now I'm new to this stuff and this perked up my ears. Just seems like thin ice to advertise the listing as a short sale.

You wouldn't advertise it as a short sale. You would advertise it as needing short sale approval.

You're not going to go to the bank and say "I'm thinking of listing this house for less than you are owed on it. Will you approve that?"

You're going to find that a seller owes more than be property is worth, but has to sell anyway. Then you will market the property at its actual value. Not it's "gee I hope it could get this amount" value. Its actual value.

Then you will get an offer, and get that buyer FULLY preapproved. If you can get buyer preapproved with the bank currently holding the note, even better.

Then you will present the offer, the proof of value, the facts of the market, and the preapproval. Then you will talk to everyone at the bank until someone approves the deal.

Then the bank has the choice, let this property become their inventory, or take a fair amount of money for it now.
--A

I know one agent that does it this way and she does a ton of short sales.She will put it in the mls at a cheap price way below the loan value and then put in the remarks that it's a possible short sale deal.The owner knows they won't be getting any money.This as you would imagine attracts HUGE interest and multiple offers.

After she has all of these offers she presents them to the bank,then they order the bpo's and decide which offer if any they want or will counter.

This lady does alot of these and i wish i had her volume in short sales.It's pretty smart because listing it for the loan value is not goign to draw any interest.I don't see any liability as long as it's disclosed as a possible short sale and not a definite.

Makes sense super realtor! I think i'll try it. I hear the GAREIA is going to have a class on this soon.

Regarding appropriate advertising...you guys should go on Craigslist in San Diego Real Estate and search for "Short Sales." There are always a lot. Some say "FORECLOSURE LOOMING".

I can't do that to my clients. I think those that put words like foreclosure loomming should have clients agree in writing that its OK to market as such.

My yard signs don't say SHORT SALE REALTOR.