A little disbelief about Short Sales is a healthy thing. I understand that plenty of folks out there are unfamiliar with how they work. That is the reason why it is so vital for property financiers to get the right coaching and be ready to answer questions like the ones I have been blogging about for the past week. Just last week I received a letter from a counsel who suggested her customer ( the householder ) against proceeding with a Short Sale with an estate financier. I have been posting my point-by-point replies to the lawyer. Here's another excerpt from the lawyer's letter, followed by my reply : the only possible way such an exchange could most likely be insurable is if the following necessities have been met : one.

There are no violations of any restrictions listed in the short sale payoff letter or closing instructions. Two. there were no misrepresentations as to the price or possession of the property to the present bank, the new bank, or the purchaser. Three.

All disbursements must be made precisely as stated on the HUD-1 settlement statement, and only to parties concerned in this particular exchange. Four. Each half the simultaneous closing must be kept separate and stand on its own. The sale from A to B must be entirely financed and lay out with cash coming from and going to all suitable parties.

The sale from B to C must also stand on its own. The cash from C's bank must not be used to pay for any portion of the A to Z transaction. Yes, Ms. Solicitor, you are right on.

Obviously you've read the advisory letter from your title underwriter ( from where you suitably copied these things ). YES - this is how back-to-back Short Sale transactions should be structured and if the financier is reasonably trained ( the way I teach it ) then this is precisely the way the financier will need to do it. Like I revealed, a little disbelief is a healthy thing. We are in totally rare, historical times for the estate market and particularly for Short Sales. And yes, there are a lot of scams and bad-faith opportunists out there making an attempt to rip folks off out there. when done the correct way, Short Sales are win-win opportunities that only work if the deal works for all parties. If your seller isn't on your side cheering for you, then I recommend you go find another house! How does one set things up so your Seller is "cheering for you"? That is one of the major property financier abilities I teach!