Special offer

Want to Buy a Home? Skip the Short Sale!

By
Real Estate Agent with Keller Williams Capital Properties DC AB15253

You did everything you were supposed to. You researched your choices carefully on the Internet using useful websites like www.dchomenews.com, that really guided you to all the good deals. You got your financing in line, and you found yourself a fabulous agent.  After several months of looking in Bethesda, Chevy Chase, DC, and everywhere else,

As everyone knows, a short sale is never short! It can take months to close, leaving you, the buyer, in the dark as to what is happening. You sign a contract with the seller, but the contract is subject to third party review.  The seller doesn't actually care any more what price he or she sells the house for.  He isn't breaking even, so a small loss is the same as a big loss.  Don't count on the fact that the seller accepted your offer.

You sit back to wait for the broker price opinion, and the process, the review, the paperwork. Rationally, you know that you don't have a "deal" yet, but in your mind, you are arranging furniture in your new house. You are picturing the flowers in the garden and the holiday dinners you are going to prepare. You are telling your friends about the lovely color that you are going to paint your bedroom, and the new comforter that you saw at Target.

BUT WAIT! REMEMBER..... YOU DON'T HAVE A DEAL YET. YOU AREN'T ACTUALLY COMPLETELY UNDER CONTRACT! You still have a HUGE contingency.

Sure, tell your heart what your brain doesn't want to remember.

It actually is important to remember that you don't have a contract with all the contingencies removed.   The listing agent may call your agent and say that the bank has refused to accept your offer - even though the seller did agree - 2 months ago.  The market is changing, and the banks may not be so willing to go along with contracts that were negotiated several months ago between the buyer and seller.

Another important thing to remember is that the banks have stockholders and they can't give away tens of thousands of dollars just because you got the seller to agree to sell the house at a rock bottom bargain basement price.

If you want to go for a short sale, don't count on that house until everything is signed and you have that third party approval.  Better yet, call Lise Howe at 240-401-5577 and she will find you a great house that will close on your schedule!

Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Lise, I've had an up and down 24 hours. Two shorts on the "bubble". One looks like it will move forward, the other may die on the vine.

Nov 11, 2009 03:09 PM
Christine Hooks
Pino Agency - Pennsville, NJ
Celebrating 25 Years in Real Estate!

I just had the 6th contract that was presented to the mortgage company approved for settlement this month.  My listing has been on the market for over 1,000 days.  I wonder how the first 5 buyers are going to feel when they realize that the house that they wanted finally sold............for a whole lot less than they had offered.

I just don't know how the loss mitigators justify selling this house for over $90,000 less and 2 years later?  It's no wonder the banks are in trouble. 

Nov 11, 2009 03:11 PM
John Rakoci
Eagle Realty - North Myrtle Beach, SC
North Myrtle Beach Coastal Carolinas

More and more buyers are hearing the facts of short sales and asking NOT to be shown any.

Nov 11, 2009 03:15 PM
James K Barath, CMPS
Canopy Mortgage, LLC - Crown Point, IN
FICO Pro, Certified Military Housing Specialist

Short sales have been very burdensome in the past to facilitate. With all eyes from the treasury to create incentives for servicers and banks, short sales will be facilitated more efficiently in 2010. Don't lose faith.

Nov 11, 2009 03:17 PM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

If someone needs a home soon short sales are surely not the way to go.

Nov 11, 2009 05:00 PM
Brian Berke
Mortgage Master Inc. - Washington, DC

Lise, 

I have seen both ends of the spectrum when it comes to short sales.  Reasonable turnaround on one and glacial in another.  "Bargain" on one price and "fair" on another.  Case by case, lender by lender.  It is sometimes, but certainly not always worth hanging in there.

Brian

Nov 12, 2009 02:29 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

So frustrating....I've gotten them done, and I've had them die. There is no way to tell, but definately it should be considered a back-up and keep looking.

Nov 12, 2009 02:37 AM
Dr. Stacey-Ann Baugh
Century 21 New Millennium - Upper Marlboro, MD
A doctor who makes house calls.

These short sales can truly be a painful process.  I've had many clients who won't touch them with a 10 foot pole.

Nov 12, 2009 07:03 AM