Short Sales 101 for Sellers and Listing Agents

I recently came across an article by Jeffery Watson, an attorney in Ohio.  It is, bar none, the best synopsis I have found discussing the challenges and options facing sellers in pre-foreclosure and their real estate agents.  If you know me or read this website on occasion, you know that I am always pointing to the advice of attorneys in any pre-foreclosure situation.  So for that reason, I consider this article to be an incredibly good primer for the Realtor or seller who is considering working with an investor in a short sale situation.

Click here to read the article (this link has been updated – it takes you to Part 1 of 4 of Watson’s article): FIDUCIARY AND LEGAL RESPONSIBILITIES OF REALTORS RELATING TO SHORT SALES

The article is only about 5 pages, so it’s a pretty quick read.  But here is a brief summary of what Mr. Watson covers:

  • Clarification of the Realtor’s fiduciary responsibility in a short sale transaction.
  • The reality of negative equity and distressed properties.
  • 4 options available to a seller facing pre-foreclosure.
  • Unique challenges presented by short sales (tax implications of debt forgiveness, multiple liens, asset protection, judgment deficiencies, managing the BPO, closing escrow)
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