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More strategies for handling short sales

Tips on working with lenders, protecting seller's credit

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I recently spoke in Brighton, Mich., which is about 45 minutes outside of Detroit. Michigan is experiencing a very difficult buyer's market. Prices are decreasing. The auto industry is experiencing massive layoffs. Many Michigan sellers lack sufficient equity to close a transaction. As a result, short sales have become an unpleasant fact of doing business. If your market is slowing down, you may be facing some of the same issues listed below. Who is the decision maker? Most lenders sell the loans they originate on the secondary market. In fact, it's common for a single mortgage to be sold and resold several times. When you have a short sale, one of the greatest challenges is locating the person who has the power to approve the short sale. If you are aware that your sellers are going to lack sufficient funds to close their transaction, don't put the property on the market until you have confirmed that the lender will work with you to close the short sale. If you cannot obtain this confi...