Maine Short Sale News | Marty Macisso | Maine short sale specialist expert
The landscape of short sales is changing in Maine as inventory shortages and record low mortgage rates have provided an environment for short sale banks to continue to drag out the short sale process.
There are many misconceptions about short sales and one common one is that lenders will take any offer submitted to them to "get rid of the property" . While lenders are not in the business of owning homes and managing property – this above fact could not be further from the truth. They want to be paid 100% of what the property is worth just like any other home owner.
When either buying or selling via the short sale process you must realize the bank cares not about the principal balanced owed but rather what the current market value is. They come at this process in terms of NUMBERS. What is their Net Tangible Benefit? Meaning will they make as much money back in their pockets by selling the property as a short sale as they would at a foreclosure sale? If they have offers that are much lower than the current market value it makes no sense for them to accept it as they'll make more back via the foreclosure process.
Maine Short Sales are getting more streamlined
In some cases, the short sale process can seem impossible when it comes to submitting paper work and documents and offers to the banks. It can be a black hole. You send in documents and call to follow up and get an agent in India who has no idea what your talking about. Perhaps they threw your documents in the shredder because your agent omitted an account number? Who knows.
However, some lenders like Wells Fargo, Chase, Bank of America, ASC just to name a few, actually have their short sale process in a streamlined and professionally organized system. I know its hard to believe. The Equator system is a web based system that allows the short sale expert real estate agent input the Maine listing into the system to initiate the short sale. This takes expertise and only a few certified real estate agents in Maine are able to do this, but it dramatically cuts down on lost time and increases the communication and accountability on the side of the banks. No more "lost paperwork", we can now track step by step where the process is and what documents pertaining to the short sale may be missing.
What happens to my short sale when I have a local bank or more than one mortgage?
It gets tricky when multiple lenders are involved because every bank wants to get paid more than the other will allow. However the expert short sale agent will know how to deal with this not only when it happens but how to set it up before hand to prevent the battle at the very end. Some Maine real estate agents won't even think to ask how many liens or mortgages are on the property, wow – that's unbelievable. The junior lien holders will only get paid a fraction of what the 1st short sale lender will receive however, they can reject and ruin the entire process if they don't agree to the terms of the first bank. Sounds complicated and tricky, right? IT IS!
However there are certain programs to use up front to make sure this battle does not occur or its more smooth of a negotiation. Just ask a Maine short sale expert. Local banks here in Maine do not like the short sale option, however they will approve a short sale but they will not forgive deficiency balances entirely. They usually ask for a promissary note to pay back some of the difference left over. This is unfortunate but its better than a foreclosure, which gives a bank 100% of the deficiency and ruins credit forever while creating a public record for the owner.
There are many challenges, especially when the real estate agent in Maine has no clue about the process or uses a 3rd party to do the work for them. That's a complete sham, a failure of their fiduciary duties to their client because they are not entirely consumed with the short sale process. Pick a short sale agent with a track record and who knows the process better than the banks do.