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Short Sales...Grrrr

By
Real Estate Agent with Berkshire Hathaway HomeServices Knight & Gardner Realty

Why is it that I am asked daily is my short sale not yet approved after months and months of waiting. This is the all too common question from buyers who have made offers on short sales.  Buyers are pre-approved, brought in offers that are at the current value and then just wait.  Banks seem to be in no hurry to approve these while taxes, condo fees, code violations fines and maintenance issues mount. We have all seen the murky green pool that now has fish living in it.  In the Key West Association of Realtors MLS as in other communities there is a glut of short sales awaiting approval. Currently we have 149 residential short sales under contract as compared to 46 normal sales. A whole new cottage industry of short sale negotiators is flourishing but nothing has sped up.

What is wrong with this picture?  I think a lot; only 1 in 3 short sales ever close primarily because the buyer eventually drops out. A short sale that never closes can only end up as a foreclosure and most times is resold for a price much less then the actual short sale offer. The banks end up losing money and when they do the US government seems to be there to help.

Comments (3)

Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

the buyer that starts the process may move on, but the path cleared, climb up the short sale hill is not for nought. Stay with them, juggle them and move another buyer in and explain this is going to take some time, without a guarantee of the outcome. Many buyers are not the most patient and need the place soon.

Mar 03, 2010 06:05 AM
Terry McCarley
Coastal Real Estate - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

I specialize in short sales in Cape Coral, FL and have had excellent results.  The buyer tends to stay in for the long haul if they are kept in the loop.  I see too many real estate agents submit the offer and then have no contact with the buyer until the approval comes in - by then the buyer usually has walked.  Stay in close contact with the buyer or the buyers agent if the buyer is not your client and let them know you are working on getting approval and they will hang in there if they really want the home.  I make every effort to call the banks on each of my short sale files weekly and lately I am seeing much quicker approvals - I had one come in after only 3 weeks - I wish they were all that fast.

Mar 03, 2010 06:15 AM
Joanne Tarantino
Berkshire Hathaway HomeServices Knight & Gardner Realty - Key West, FL
CRS, Realtor

Terry, thank for you encouragement.  I looks like you are doing a great job for your buyers.  I have a referral to send you for Cape Coral.  I will call you next week.

Mar 11, 2010 03:28 AM