I have a few questions about making offers for clients on short sales.

Will they pay any or all closing costs?

Will they tell you why they rejected and offer if they dont accept?

IF you want a way out of the contract after accepted..you have to pay for an option fee right?

Will they pay the title policy?

Is it only lenders that require a survey...or title co too?

I have closed traditional trans..this is my first short sale offer

Thanks in advance folks

You should really ask these Qs to your broker -- if for no other reason than you will find out whether or not your broker is responsive and helpful to you. If your broker is not there for you, why are you there?

Be that as it may, if you represent the buyer, the buyer will only get certain concessions if the buyer asks for them up front. The lender can always refuse, or counter back. The lender is unlikely to volunteer any concessions before even receiving an offer. Things like closing costs and who pays title can be negotiated. The lender will probably tell the listing agent why the offer was rejected -- it was too low, or the buyer seemed too weak financially to close the deal.

The standard ways out of a contact are normally contingency clauses such as inspections, loan approval, appraisal, funding, etc.

A lender might require a survey if there is some issue that requires it; on the other hand a title company could refuse to issue title insurance unless a survey established the legal boundaries, for example.

p.s. I'm in California. Not Texas. No legal advice given. Go have a margarita.

Tony each short sale you work will be different. It depends on the loan type involved FHA,VA,Conventional Insured,Conventional Uninsured.

There is a system to short sales but at the end of the day all banks are very different in how they handle them. You need to counsel your buyers on what all is involved in a short sale to see if they are ready to make that commitment to the process. Otherwise and REO with clear title already and a quick answer might be a better option.

Thanks gentleman.....I understand both of you. Caveman I hear you...I just wanted to get a good idea before I start cranking out offers of what would likely get get accepted as an offer. Also..I didnt think most lenders would counter...just accept or reject....and then maybe not tell you why..just keep letting you make offers until you hit the right button per say

SO according you guys...even though there is some consistencies to short sales......each one could be different...very interesting......any other opinions would be most appreciated..but that helps greatly....Thanks guys

Will they pay any or all closing costs?

Most lenders will contribute up to 3% buyer's closing costs, as long as the net proceeds are still within line of their acceptance.

Will they tell you why they rejected and offer if they dont accept?

Most lenders will typically tell the listing agent why an offer is being rejected or countered. Sometimes the servicer does not know when the investor declines an offer, therefore they will not be able to tell the listing agent why.

IF you want a way out of the contract after accepted..you have to pay for an option fee right?

Typically the best way out of a contract is through a contingency clause, which could include inspection period, financing, appraisal, etc.

Will they pay the title policy?

Most lender will cover the Owner's Title Policy, but the buyer is usually responsible for their Lender's Title Policy. This can usually be paid for out of buyer's closing costs if the lender contributes money towards the buyer's closing costs.

Is it only lenders that require a survey...or title co too?

This is not very relevant to a short sale. This will be the same rules that apply with a regular sale.

Hope this helps you with some of your questions. You should definitely know what you're getting into and make sure your buyer is prepared for the waiting period before jumping into a short sale. I advise talking to you broker as well. Bottom line, if you don't ask for a concession, don't expect it.

Thanks 007...i will be submitting my offers in the am.....