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Sacramento Short Sale Buyers Have No Control Over a Short Sale, None, Zip, Nada

By Elizabeth Weintraub Sacramento Broker

Real Estate Agent with Elizabeth Anne Weintraub, Broker DRE #00697006

February 21, 2010 01:47 AM

Hardly a day goes by that I don't receive an email from some frustrated short sale buyer asking me for advice on some transaction that I'm not involved in. Most of the scenarios are as follows: The buyer has been in escrow for months, waiting for approval, and nothing seems to be happening. They feel helpless, stymied, stonewalled and disheartened.

I know how short sale buyers feel, which is one of the reasons that as an experienced Sacramento short sale agent, I stay on top of my transactions. Not only do I post daily progress reports on my website that my sellers, our buyers' agents and their buyers can read, but I try to send important advancements to the buyers' agents as they happen. Of course, I can't force the buyers' agents to pass on this information to their buyers, but I hope that they do.

See, short sale buyers are an important aspect to any short sale transaction. They are paramount. Without a dedicated buyer, there is no deal. They are a precious commodity who deserve to be treated with respect and handled delicately. Expectations need to be managed. It's very difficult for buyers to wait two, three, four months or longer for short sale approval.

But a buyer has no control over a short sale. None. Buyers can't speak with the seller's short sale bank nor can their agent. Only the listing agent controls the short sale transaction and pulls the strings. If that listing agent has no short sale experience or doesn't routinely follow up with the short sale bank, a buyer can be in for a long wait. In fact, it may never close, especially if complications arise.

Buyers don't see any of these things. What a buyer sees is a home the buyer wants to purchase. Hopefully, that buyer is in contract with the seller, and the listing agent has experience selling short sales. If not, that buyer is at the mercy of an inexperienced short sale agent, hoping for a miracle. That's a sad and sorry place to be. My heart goes out to them.

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Russell Lewis

Realty Austin, Austin Texas Real Estate - Austin, TX

Broker,CLHMS,GRI

This is a very valid assessment of the mess in real estate where foreclosures, short sales and REO's have a large part of the market. The buyers, sellers and the real estate profession all suffer from a lack of consistency, professionalism and just plain ineptitude. I know that like yourself there are many good agents doing their best to bring a level of integrity to the situation but it's sometimes just overwhelming!

Feb 21, 2010 01:54 AM

Chris Ann Cleland

Long and Foster Real Estate - Gainesville, VA

Associate Broker, Bristow, VA

Elizabeth: I get the same emails and phone calls. You can hear the frustration in their voices, and there is nothing you can tell them, or really, should be telling them. They have their own agent who should be getting guidance from the listing agent.

Feb 21, 2010 03:09 AM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

Hi Russell: With the volume of short sales and foreclosures dominating the market in Sacramento, it's created an open mine field for agents who don't haven't ventured into that arena.

Hi Chris Ann: You bet I tell these buyers that I can't interfere in their transaction. It's against Article 16 of the Code of Ethics. But I understand why they contact me; they feel desperate and are hoping the experts can guide them.

Feb 21, 2010 03:22 AM

Colleen Fischesser Northwest Property Shop

NextHome Experience - Chelan, WA

A Tradition of Trust in the Pacific NW since 1990!

Elizabeth, I think buyer's only control is to have an agent representing them who knows the right questions to ask the listing agent (to determine whether the listing agent has a good handle on the process) and then trust that agent to let them know when it may not be a good situation to jump into. It's about all they can do, hire someone qualified to represent them and their interest.

Feb 21, 2010 03:33 AM

Barb Szabo, CRS

RE/MAX Above & Beyond - Cleveland, OH

E-pro Realtor, Cleveland Ohio Homes

I've been waiting on one since Sept, 25th. I represent the buyer. We all feel hopeless and helpless. I don't believe this listing agent has any experience.

Feb 21, 2010 04:54 AM

Mary Douglas

United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO

REALTOR, Red Feather Lakes, Colorado

Hi Elizabeth, I can't imagine the anguish of just waiting...and waiting... I'm not a patient person and would hate to be in the buyers shoes. I like the way you update them as things progress, that has got to be a great comfort for the buyers on your listings!

Feb 21, 2010 04:56 AM

Robert Machado

HomePointe Property Management, CRMC - Sacramento, CA

CPM MPM - Property Manager and Property Management

As I see it, the only one who has control in these is the bank. They are the real owner of the deal. Once buyers understand this they might not be less frustrated but might get off your back.

Feb 21, 2010 06:33 AM

Steve Shatsky

Dallas, TX

Hi Elizabeth... this is right on target. I understand the buyers frustrations and do anything I can to communicate with their agent about what's going on. What frustrates me is when a buyer's agent doesn't understand the process and the limits regarding what can (and can't) be done.

Feb 21, 2010 06:51 AM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

Hi Colleen: What's even more frightening is you can find a short sale agent who seems to have a fair number of listings but perhaps it outsourcing the negotiations to a third-party firm. So there's no direct, hands-on involvement on the agent's part. On top of that, some of those so-called short sale negotiators do NOT have a real estate license, which is required to negotiate short sales.

Hi Barb: You should be receiving some sort of status reports from the agent. I took a Bank of America short sale listing last month that had previously been in escrow for 6 months, during which time the listing agent had done nothing to move the file forward. In fact, the listing agent told the seller to do her own negotiations.

Hi Mary: I sense the buyers of my short sales are a bit more comforted than buyers of other short sale listings because at least they have a clue as to what's going on. Still, it can be a long wait.

Hi Robert: It is the bank that often causes the most problems and delays on a short sale; however, every bank has its own procedures. After you work with enough short sales, you know which banks follow which procedures and you know the timelines involved. For example, Bank of America will tell me when an approval letter is about to arrive so I can give advance notification to the buyers. When Chase Bank asks for final HUD revisions, I also know the approval letter is just around the corner.

Hi Steve: I hear you. I've had buyer's agents ask me if I couldn't call somebody at the bank when the file is under review and push it along. As if. Once it goes into review status, it's a minimum of 10 business days. Calling the bank on day 3 will accomplish nothing except make the short sale listing agent look as though she doesn't know what review means.

Feb 21, 2010 08:17 AM

Terry & Bonnie Westbrook

Westbrook Realty Broker-Owner - Grand Rapids, MI

Westbrook Realty - Grand Rapids Forest Hills MI Re

Buyer get so anxious it does take commitment.

Feb 21, 2010 02:42 PM

Debbie Baldes

Calling Boise Home - Boise, ID

ABR, SFR, e-PRO, CHS

Even though I am VERY clear on explaining the short sale process and the complications that could be involved with putting an offer in on one, I have a buyer that asks me all the time, What can I do to speed up the process? I tell him, there's nothing we can do but wait! And, even if the agents are doing their job they are still at the mercy of the banks processes! We are on their time clock!

I always enjoy reading your posts!

Your neighbor! Debbie

Feb 21, 2010 05:05 PM