The Other Side of Short Sales

Elizabeth, Excellent way to bring attention to the peoples lives that are effected by short sales. I find my sellers are doing their part, but the buyers can cancel as though the contract doesn't mean a thing. And the buyers are a key part of the short sale approval process.  Flakey buyers...won't get you going!

Hi Elizabeth,

Very true indeed...  I hear very often from buyers or those who have evidently not been in a tight spot financially in their lives that short sellers deserve to lose or don't deserve help or should have to pay and so on...  The reality is usually they do suffer a series of pains all in an effort to right their personal and financial ship.  I have a great deal of respect for those out there "doing the right thing" as it fits their lives on either side of the curve and also for those who have managed to stay very financially sound through these recent hard times.  However, I hear all too often a serious lack of kindness and understanding and a propensity for judgment.  When I hear others judging, etc... (sometimes my own buyers) I do my best to promote having a kinder attitude about others situation regardless of how it came to be. 

thanks for the post!

So true, Elizabeth.

And that's the real reason that agents who represent sellers in a short sale MUST be on their best game and constantly educating themselves about the latest trends and strategies. There is just too much at stake for the seller and too much liability for the broker.

Elizabeth,

I am representing sellers in short sales and I can see/hear the stress of what they are going through.  In one recent short sale the buyer's agent kept telling me the buyer was hanging in there. On the day we got the approval letter the buyer's agent told me that buyer was ready to go.  The seller had paid an attorney to review the letter. Two days later the buyer walked.  I am wondering if the agent was even checking in with the buyer.  The seller is so frustarted and can hardly believe that we have to start over. 

True!  It's even harder on the seller, who now has to either do it all again, if time permits, or face the inevitable.

Thanks for sharing such a valuable post.  I wish all short sale buyers and their agents could read this.  Re- blogging it now!  Good Stuff!

Great post and so true! Couldn't have said it any better! Going to re-blog

Very true that the buyers focus on the banks when they pick up their marbles and leave and seldom consider the toll it takes on the seller. People's financial future is linked to a successful short sale when selling. Their mailing address is at stake when buying. Big difference. 

Oh, and for those who lament that it isn't just their address, but the school their kids attend or some other heartbreaking thing, if the bank rejected your offer and you have NO OTHER option in that school district at that price, you were trying to sneak in the back door and it got shut on your fingers. 

You're right, very few people talk about the impact on sellers.  My issue with the banks and short sales is that they have no penalty for taking so long.  In a normal sale, if the buyer or seller delays the closing, they're responsible for paying the costs incurred by the other party.  Not so for banks, which is unfortunate.

Great point. The seller is very much handcuffed to the wims of the bank.

What you say is so true.  The buyer is anticipating a "deal" while the seller is anticipating hope to help save their future.  So when the buyer walks,  that hope is crushed.

When the sellers are in the short sale situation prior to a foreclosure, the emotional roller coaster ride can be daunting.   To have their hopes up and then crash is devastating.   Sometimes you can understand why people go to foreclosure.

As one of the big REO agents says "As you walk through a home, you see evidence of someone's life left behind such as pictures or a Barbie doll or other toys.  It is sad."   It truly is.  We all feel the pain of their loss.  Someone had such high hopes when they bought this house and now it sits empty.  So we all wish for a successful short sale.  Please hang in there and prepare your buyers and your sellers for the roller coaster ride.

What kills me is to see properties I've had buyers wait on for 4 months, then finally bail out because they figure it's never going to close, then see it sold 6 months later for half what my buyers were going to pay for it...WE, the public, ultimately pay for that....why they just don't let the brokers run them to the table when we have a valid contract is beyond me..it would wind down the inventory a lot quicker...banks should look at the contracts, immediately fax us a letter of approval, and let us do our jobs....I have one right now just 15k below what they owe and I can almost guarantee they'll screw it up and get less later.

Simply a brilliant post. It's so easy to forget sometimes...Thanks for the reminder!

Elizabeth - You're right, buying a short sale, or any property, is not something to take lightly.  It's grave.  That's why we get deposits, strong offers and buyers willing to wait.

Fantastic post.  A must-read for every agent considering working a short sale.  As Wendy put, it deposits, strong offers and buyers willing to wait usually seals the deal.  Also, having a strong and competent lender is important. 

Elizabeth,

All I can say is they are lucky to have you ease their way...what I don't get is an agent taking one on when they not only don't know how to do them...and worse...don't care...

If they can't make an easier process for short sales then perhaps agents should just stop doing them being they are such a hassle, take forever, and success rate is low!

Elizabeth - I missed this somehow and just found it via a reblog of another post that mentioned how wonderful it was. Agreed. We certainly don't hear much about the seller and aren't they ultimately the ones who suffer most? The bank certainly doesn't. The seller's situation simply worsens while things drag on in many cases, with some facing the foregone conclusion of the trustee's sale.

Elizabeth, I have done two short sales (long before they were popular) and in both instances I lost buyers along the way. Luckily both times I ended up with a buyer showing up at the end who ended up purchasing the home.