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RISMEDIA, May 25, 2010—Carola Dauchert is an agent with Prudential C. Dan Joyner Realtors in Anderson, South Carolina. One of her specialties is Lake Hartwell, S.C., which is a popular second home/resort area where sales seemed to have dried up

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My wife and I have put in an offer for a property that was a bank approved short sale. We made the offer at the amount that was listed for (also similar to comps in the area). We are first time home buyers and we qualified for an FHA loan with 3% down payment. Our agent (real estate and mortgage broker) included in the offer that we are pre-approved for a FHA loan. It has been approximately four days since we made the offer (we gave a 72 hour reponse frame) and the bank has not responded yet. The seller’s agent confirmed he received the offer and that he passed it along to the bank. He also said that since it is a (bank approved) short sale the bank can take longer to respond. What are our chances of getting a response from the bank? Should I assume that they are not interested if they don’t give us an answer in five to ten business days? Also, would making an offer with an FHA approved loan (3% down) hurt our chances of getting our offer approved?

From what I understand – if a buyer’s agent is showing property to a client – and the property is a short sale – there is no commission % offered by the selling agent. It’s up to the lender – right?

When does the lender decide how much commission will be paid to the the agents – and what is it based on?

When in the process does it happen?

To give you some background….

I know of a buyer’s agent who has already made an offer for his client – but has no idea how much commission he’s working for. Is this the norm with short sales? Why would a buyer’s agent get involved?

How does a Short Sale work in Charleston South Carolina?

DEFINITION OF A SHORT SALE:
A short sale takes place when the sales price of a house is less than the outstanding mortgage balance on the property and the lender agrees to absorb the difference.

SELLERS FREQUENTLY SAY:
“I am unable to continue making my mortgage payments.i am two payments behind. I’m afraid they are going to foreclose on me. I owe $200,000.00 According to the market analysis, my house will most likely sell for only $150,000. I don’t have $50,000 to make up the difference. Will the The bank let my house be released for $150,000?” This is happening very frequently now if you qualify for a short sale.

Fill out Your Property Information to see if you qualify: “Do I qualify for a short sale in South Carolina?”

WHY BANKS APPROVE A SHORT SALE:
Foreclosure proceedings are very expensive for banks. It may be less expensive for them to accept a short sale if the homeowner is no longer able to afford their payments. In that case it is a prudent business decision. Banks don’t agree to short sales because they “feel sorry” for the owner or “understand” their circumstances. Short sales happen at all price points – from under $100,000 to homes in the millions. Each short sale represents a family in financial distress for a variety of reasons such as divorce, job loss, health expenses, or poor financial decisions. It’s up to each bank to decide if they will accept less than the total due. Every bank handles short sales differently and each homeowner’s situation is unique. One of the most important and least understood elements of short sales is that the homeowner must be approved for a short sale. In other words, they have to provide proof to the lender that they can no longer afford their home. We can guide you through the process.

HOW THE BANK, THE SELLER, AND THE BUYER BENEFIT FROM A SHORT SALE:
The Seller avoids a foreclosure on their credit report.
It can help the Seller with a solution to an embarrassing situation.
A house may be spared abandonment. Some short sales homes are vacant, but they typically aren’t abandoned.

The banks don’t have to pay their attorneys, money collectors, hazard insurance, taxes on the homes, etc.
The Buyer gets a house at a good price; and typically the home is in better shape than a foreclosed house.
The Bank does not have to seize, evict, manage, clean-out, maintain and resell the asset. This is a big savings to the bank.

The Neighborhood is spared another boarded-up vacant foreclosed house in the area.
Other Sellers in the area are spared the stigma a low sale pirce of a foreclosed home that brings down the property value in the entire neighborhood.
The Seller will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 years.

You can find out more information here on how to sell your house fast in Charleston South Carolina.