Cape Coral short sale process / Re-visited ;)
I previously wrote the response below to a fellow active-rainer who apparently handles short sales completely different than myself, or any other agents who I've known to actually close them. She has since DELETED my comment so I felt compelled to post this on my page.
Her blog post was all about multiple offers and even suggested that our fiduciary responsibility was with the bank, instead of the seller.
As a potential short sale seller, wouldn’t you rather have an agent looking out for YOUR best interest, and not your lenders? Obviously you’d want to bring the BEST offer to your lender as to not have to worry about as much potential monies or taxes owed. But most importantly you want to get the property sold and move on with your life. Methods like sending in multiple offers will not only confuse the lender and make their work much more difficult but it could potentially lead to NO Approval ~ and who wants that?
Elizabeth,
I read your post and most of the comments; I have to say this is so upsetting to me. As a prominent short sale agent in Florida, I have to say that your way of thinking is completely OFF.
First of all, our listing agreement is with the SELLER, not the bank. We owe it to our seller to assist them in obtaining the best offer possible. In our listing agreements here in Florida we have a check box that asks if the seller is to receive offers after they have accepted one and we check that as a NO. Why would a seller obligate themselves to sell their property to multiple people/times any way?
There can only be ONE buyer for each HOUSE/Seller. If you are having your seller sign multiple offers then you are opening yourself up to extreme liability as any one or ALL of those buyers can sue your seller for specific performance.
The bank is not a party to the contract therefore they cannot make the rules. The seller is still the seller. The bank is a third party authorization required to release the lien.
We have agents in our area doing the same thing you are doing and they are not closing many short sales. It is confusing, misleading and improper.
Short sales should be treated like a regular sale, that's what you said. So in a regular sale would you allow your seller to accept multiple offers? Of course not, so why would you allow your short sale seller to accept multiple offers?
Price the listing correctly, present all offers and have the seller pick the best one!
The multiple offer game makes no sense at all. We have an obligation to present all offers, Yes. But the seller should not be accepting multiple offers, ONLY 1! Then that CONTRACT goes to the seller's lender for their approval.
Also, from a buyer's standpoint why would they wait around to see who's offer is going to be the lucky one to be picked after 30-60 days of sitting at the bank? Not in our market, too much other inventory to put in legit offers on.
I really hope that others read my comment before they decide to do business in the same fashion as you are proposing. It only muddies up the process for all involved.
Today I read another article written by another Florida real estate agent. He also says he works on many short sale files. He claims that it will take 6-9 months for an approval on a short sale. I find that an excessively long time to wait. When we first began handling short sales the first few took us 60-90 days for an answer. This was due to 1) our inexperience & 2) the banks not having systems in place for short sales.
Within a few months of handling short sales our approvals were coming in on an average of 40 days. Some came in within days; others took 30-45 days. Within the past several months, we’re seeing these numbers RISE. We are now seeing it take 45-60; and in rare cases 90 days for an answer. Why? My thoughts are 1) banks are inundated with short sale packages 2) banks are waiting to see what the government & potential bail outs will be 3) banks are changing their guidelines
What can we do? We can help by properly educating ourselves, our peers & our sellers & buyers. We can start by pricing short sales correctly. Marketing them frequently & handling offers as we would ANY sale. We can create short sale packages that include every document that the lender may need in a concise and easy to navigate assembly. We can follow up often to make sure documents are received and being looked at. We can update the buyer’s agent or buyer frequently as to keep them involved & interested. It will take much longer if we have to go through 2-3 or more buyers.
I’ve written other articles on this topic as well. It just seems like there is still so much misinformation out there that I felt compelled yet again to address this.
If you are in need of a real estate agent who truly works short sales & understands the process please give me a call. I have been able to help many homeowners with this process and I can help you too. Remember, there should be no charge to you ~ upfront or at closing if handled correctly.
We look forward to working with you.
Yours in Success,
Susan Milner
Florida Future Realty, Inc.
239-542-8521
Susan@SusanMilner.com
Copyright 2009 Susan Milner of Florida Future Realty, Inc.
;)
;)
Well stated Susan. I too have found the process to be longer now than it was at the beginning of the year. BUT...I bet by this time next year short sales will be a piece of cake. The lenders are getting so much better. Now we just need to keep educating the agents.
Wendy and I would love to have you come join our short sale site. We have almost 200 members and we could use your experience and knowledge. Give it some thiought.
I hope all is well with you.