Short Sale Train Wreck Coming to Northern VirginiaShort sales in the Northern Virginia market aren't new. They were around in previous down markets with a different twist. Sellers actually had to come to the money with the table to close the deal or sign a promissory note to cover the difference. Sellers sucked it up and did it in order to move on.

Today the amount of money that most sellers are upside down keeps that from being a realistic scenario. However there is a train wreck coming and it isn't about the number of short sales or a tsunami of foreclosures but instead the way real estate agents are handling the deals.

There are a lot of agents running around Northern Virginia suggesting they are "short sale experts" when in fact that don't even understand how a contract is written and ratified. Last week while working through multiple offers for buyers I encountered not one, not two but three agents who "ratified" contracts when the buyer's offer had clearly been countered by the seller.

In one cases the agent even wrote on the contract that instead of agreeing to our subsidy request that they would let the lender determine the amount. Say what? Anyone who works with short sales or foreclosures knows the lender will say ZERO if you give them an opportunity. This isn't a ratified contract but a counter offer. Yet this contract went to the bank as part of a short sale package.

It doesn't take much if you get a group of agents together to hear the horror stories of these types of examples and many far worse. There is going to be a major collision between agents who know what they are doing and agents who are unresponsive and far worse. It will be interesting to see the listing agent explain to their client when the home goes to foreclosure why the contract they thought was ratified in reality was not.

It is time for standards to be in place and enforced by the associations to keep the entire industry from getting a black eye. Otherwise the collision between the two sides that are forming among agents is not going to be pretty.



This post originally appeared on my blog VaRealEstateTalk

                No Hassle-No Pressure-Just Straight Talk About The Northern Virginia Real Estate Market

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and CJ Realty Group, Inc a call at 703-346-2213. 

Military Relocation Specialist serving military families relocating to and from the Pentagon, Fort Belvoir, Quantico MCB and all of the Military District of Washington installations. 


Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.
CJ Realty Group Woodbridge VA 

Licensed in Virginia



 

 

 
Post is included in group: Dedicated Bloggers
Post is included in group: Local Expert
Post is included in group: Market Updates
Post is included in group: Northern Virginia Real Estate
Post is included in group: RE/MAX Active Rain Bloggers

10 Comments on Short Sale Train Wreck Coming to Northern Virginia Soon

NOV
02
2009

I agree you actually should have to have a designation from some sort of short sale education to be able to even take a short sale listing

4:29pm • #1
1,528,082 Points 164 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Heather-one of the agents has their CDPE so that makes me question whether they were paying attention in class.

4:44pm • #2
421,343 Points Called Shot Master

I love all the terms these days...consultants, foreclosure specialists, short sale specialists and these agents in each market have absolutely no closed real estate experience.  In my opinion that is fraud.

6:00pm • #3
1,521,703 Points 112 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Cindy:  Time to schedule lunch again.  VAR's position is changing to support even more "bumper car" action in short sales. 

6:27pm • #4
1,528,082 Points 164 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Ellen-I would agree that there is a lot of "puffery" going on about transactions these days.  To many specialties can be earned by turning on your computer and answering a few questions. 

8:10pm • #5
1,528,082 Points 164 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Chris Ann-now I'm scared.  VAR should be supporting best practices not questionable practices.

8:12pm • #6
NOV
03
2009
467,812 Points 40 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

"Sellers actually had to come to the money with the table to close the deal or sign a promissory note to cover the difference."

One of my first transactions back in 1990 was a man who came to the closing with a $60,000 check for his bank and he was happy to do the deal. I was amazed! The short sale process, foreclosures and bank owned mess is even worse this time around!

7:18am • #7
1,528,082 Points 164 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Russell-when I bought one of my homes in Springfield in 1991 the seller came to the table with a $35,000 check.  Times have changed.

7:20am • #8
NOV
04
2009
986,706 Points 106 Featured Posts Localism Sponsor Outside Blog

Agents who handle short sales should be very careful. I know of an agent in our Folsom office who presently has 3 lawsuits going on over short sales. Knock on wood. It's extremely important to know what you are doing, and it sounds like some of those agents in Virginia are clueless.

9:00am • #9
1,528,082 Points 164 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Elizabeth-I hear of a number of complaints being filed.  Don't know how many are making it to hearings or any outcomes.  Three lawsuits against one agent?  You would think they might get the picture.

2:10pm • #10

Login or register to leave a comment

 
Cindy%20photo Rainmaker_large

Cindy Jones-Northern Virginia Real Estate & Military Relocation Services

Woodbridge, VA

More about me…

CJ Realty Group, Inc.

Address: 12804 Marblestone Drive, Woodbridge, VA, 22192

Cell Phone: (703) 346-2213

Email Me

CJ Realty Group Listings



Listings

Links

Archives

RSS 2.0 Feed for this blog