Short Sales are everywhere and with them comes anything but a short transaction. There are many different phases of a short sale. One of them is the seller’s bank which is the 3rd party that makes the final decision on all short sales. Along with the seller’s bank is the title company involved in the transaction. Which when an offer comes in before submitting that offer to the bank, a Hud-1 must be generated and submitted with the offer and the Hud-1 is generated by the title company. There can sometimes become conflicting issues with the title company. Because some title companies do not want to generate a Hud-1 without having the approval letter while others are not familiar with what the banks are looking for on the Hud-1 which is excluding a lot of the fees that they are not going to pay.
Listing agents who are familiar with doing short sales usually select a title company to work with in order to eliminate the confusion and a company that knows the procedure. Now by law buyers have the right to chose their preference of title company even during short sales. The issues that may occur and usually do is the title companies can keep getting switched up if the buyer walks and some title companies incorrectly put those fees banks do not want to pay and it becomes a hassle to the Listing Agent who is not familiar with the buyer’s choice.
To ensure a smooth transaction it would be preferred by the Listing agents to use their title company but to the buyers it’s their choice. I would always suggest the buyer choosing a title company, asking for a rate sheet to make sure one is not charging more than the other. If the buyer still choices their preference because by law they have that right then it also can sometimes delay the short sale process also.
If you or someone you know is looking to sell or buy in Washington DC, Maryland, or Virginia please consider The Sold Supreme Team and Damon The Agent (CEO).
Damon J. Brockenberry (Damon The Agent)
Your Washington DC Area Realtor
Servicing Washington, DC, Maryland, & Virginia
cell: 240-694-6460 e-mail: email@example.com