Thought about my short sale listings that sold and closed fast.
They all had a common denominator: the first buyers walked, and the next buyers happily waltzed in to a short sale that was neatly tied up with a bright red bow that said "APPROVED SHORT SALE!"
Here are some of my short sale listings and sales success
Story 1
Oakland Bungalow. Two loans with First Franklin. First Buyer spent the money on a lot of inspections. BPO was done. Buyer became frightened about the repairs and backed out. BPO showed higher price than market value and when taking into consideration the $$ for repairs.
I challenged the BPO, told the negotiator about the extent of the repairs as well as declining value. The BPO agent took another look, read the reports, and agreed with my estimation. Short sale negotiator approved lower price. Put property back at the lower price. Immediately received new offer, and closed in 3 weeks. Buyer's agent was thrilled.
Story 2
Oakland condo. One loan with Wachovia (that in itself was a big blessing). Wachovia gave approval for short sale in one week. But Buyer had issues getting financing, even though we managed to get extension for him to come up with the additional cash. Had to put property back on the market.
Again, instantly had a buyer with no financing problems. The buyer's agent who didn't have any short sale experience at that time was delighted that he and his buyers don't have to wait for approval. Closed in 3 weeks right around Thanksgiving time.
Story 3
Fremont condo. Two loans with Wells Fargo. Didn't have any problems getting multiple offers especially since we priced the property very agressively. However, it still took 4 months to get approval. But by the time we received the approval, buyer got cold feet saying the property is too close to the Hayward Fault. By that time, we had less than a month left on the approval.
Put property back at the approved price (still very competitive). Received multiple offers, one of which was all cash and which we accepted. Closed yesterday, in three weeks' time.
Story 4
Castro Valley house. My clients were ready to buy after holding off for two years. Their timing was right. Baby on the way. Prices have come down. Interest rates at 5%. Found them a 3 BR/2 BA home that was perfect for their needs. But...it was a short sale. they were afraid the baby would come before they receive approval. And another BUT...the previous buyer had gotten tired of waiting and walked away.
Happily, the short sale package was complete. Although we still had a bit of wait (45 days) to get our offer approved, we did get the approval at less than what the previous buyers were approved for. Yey!
NEVER GIVE UP...NEVER GIVE IN....
So yes...although the short sale process may start all over again with new buyers after the first buyers back out, the important thing to remember is most of the work is done, and that the short sale negotiators may merely want to ensure that the next buyers are fully qualified to close escrow.
It is not a bad idea --- nay, it IS a good idea -- to look at short sales whose buyers have walked. The negotiators may be more receptive to lower prices, especially when backed by market comps.
Good luck to all of us who haven't given up on short sales!
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