If you buy Laurel real estate, don’t let this happen to you.

My client insisted on looking at a particular short sale property.  She listened to my warnings about them, but we viewed the property anyway.   The home was very nice and my client decided to make an offer.  I spoke with the listing agent who seemed very positive about getting me a prompt response from the seller and the bank.

This short sale had two loans on it, a first trust and a second trust.  The listing agent assured me that once the first trust agreed to the sales price, the second trust usually agrees fairly quickly.  The danger in dealing with a short sale that has two loans on it, is the second trust not cooperating in a timely manner.

It is understandable that the second, smaller, trust would take longer to agree to the deal.  For example, lets say the second trust is $40,000.  Usually, in short sale the second trust would receive a fraction of that $40,000…..maybe only $3000.  They have no incentive to respond in a timely fashion, because they are taking on a big loss.

Well in my buyer’s current deal, the seller and the first trust agreed fairly quickly to the deal.  The second trust has not.  Our settlement date has passed.  My buyer is frustrated.  We are going to look at properties today and if we find something we like we are going withdrawl our offer on the short sale.

Oh, we are not going to look at any short sales.

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