This is the 3rd of 8 postings in a series about "short sales." If you are a home seller or buyer that is thinking of pursuing a short sale, please read the following, then give me a call if I can be of further assistance.
Why is it difficult to sell a short sale listing? Since the peak of the housing market in 2006, the number of attempted short sales has grown exponentially. The challenges with successfully selling a short sale listing (they are numerous) has ranged from lenders not understanding the depths of the housing collapse and not properly valuing homes, lenders not being educated or staffed to handle short sale requests, sellers and listing agents not knowing how to properly prepare a short sale request, listing agents not understanding how to negotiate a short sale approval, buyers not being willing to wait for a short sale approval, second lien holders not understanding what was a reasonable return on the bad debt they were holding, and so on. In brief, there has been a lack of standardized processes, procedures or regulations governing the handling of short sales.
Over the past 3 to 4 years, the successful handling of short sales has taken place in spite of a rudderless system that has largely undermined its success. As the old saying goes, "it takes time to turn a battleship," which has been the story with short sale policies and procedures. To further complicate matters, and to the detriment of their clients, many, many real estate agents have taken listings while lacking the experience and expertise to properly negotiate and close a short sale.
Is there a light at the end of the Short Sale tunnel? Yes, in late 2009, government mandates introduced new standardized procedures that will help streamline the short sale process. See part #4 of this series for further details.
Want to learn more? Read Part #4 of this article, then visit http://www.BrokersCorp.com.
Aaron Cullen is a Realtor , Real Estate Broker , and Owner of Brokers Inc. Residential Real Estate.
Aaron lives in Folsom, CA and specializes in representing home buyers and sellers in Folsom,
El Dorado Hills and the Greater Sacramento Region. Having relocated from the Bay Area in 2004,
Aaron continues to work with home buyers in all cities lying between the Bay Area and Sacramento Area.
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