How long does a property have to be listed on MLS in order to look ok in the eyes of a LM?
anyone
thanks
jay
I think it will depend on the lender. I would think 90 days or more would help you make your case.
I agree with reiauctions – 90+ days is a normal case.
It doesn’t always have to be LISTED as in on the MLS either. Some lenders will accept a letter from the HO stating that they have tried to sell it FSBO for x # of months. If they ask why FSBO and not w/ a Realtor, I simply tell my clients to say because they could not list it at a reasonable or realistic price because there is not enough room to pay off mortgages and pay a Realtor commission. I have not had any issues with this.
Steve
Steve has a pretty good idea. Either way I would make sure the property was listed with a Realtor as soon as you started working on it. I would do this for two reasons.
One, the bank would prefer to see the property listed with a professional Realtor rather than by the homeowner. Second, because I use the Realtor’s listing agreement to secure the homeowners into a binding contract so they don’t run off and do something stupid while I’m working the short sale or other negotiations. I do this instead of all that crap with putting the property in a trust and being named the trustee of the trust then signing over …bla bla bla. Such a pain in the ass.
SO IF I HAVE A CLIENT THAT IS 50K IN THE WHOLE - THEY WANT TO DO A SHORT SALE BUT THEY HAVE NOT YET LISTED FSBO OR WITH AN AGENT - DOES THAT LESSEN THE CHANCES OF GETTING A SS APPROVED? DO I HAVE MY AGENT LIST THEIR HOME AND WAIT 60 DAYS BEFORE PUTTING IN A SS PACKAGE? CAN WE GO FSBO INSTEAD? AT THIS POINT THOUGH WE ONLY HAVE 30 DAYS UNTIL AUCTION. AND WHAT DO WE LIST THE HOME AT - I ASSUME THE PRICE AT WHICH WE CONCLUDE OUR INVESTOR WILL BUY IT AT?
yes, you could list the property for what you will be selling it to an investor for…but where is your profit? Are you working completely for free?
As far as the listing, it is not required that the property is listed by all banks like to see that there has been a “reasonable” effort put into selling the home to pay off the liens rather than just trying to do a short sale. In the eyes of the bank, a short sale is one of the last options.