Special offer

Another Short Sale Contract Cancelled!

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

Another Short Sale Contract Cancelled!  Today has been another short sale kind of day.  Not that it's any different than any other day, except that today is signficantly different for those sellers whose purchase contracts on their homes were cancelled. 

Cancelled this time as in the buyers walked, thus cancelling the contract. They were obviously tired of waiting for th 2nd lienholder to locate the fax that had been sent 4 times!   Are there ways to safeguard this from happening?  Sure, there are Addendums tieing up their earnest money, ie keeping their feet to the fire. 

But I wonder do these buyers know the anguish that sellers are facing trying to avoid foreclosure?  Do they care?  I hope so, because there are those buyers who write more than one contract on different homes, thus keeping those sellers captive while the buyers search for even more short sales to write purchase offers. 

My buyer clients are discouraged from writing multiple contracts on different homes at the same time.  As a matter of principal, first and foremost I tell them that this is simply frustrating for selling agents and unfair to those sellers hoping to avoid foreclosure.  But, of course we buyers' agents are also working for our clients and oftentimes that means writing more than one offer. 

So, I'm asking the masses.  What's your opinion on multiple contracts on multiple homes at the same time?  Your opinions are appreciated as always!

P.S.  For a thorough discussion on short sales, http://www.realtor.org/archives/feat1200706

 

 

Posted by

Search the Arizona Regional MLS

Search for Homes

      

 

HomeSmart Elite Group                                  

8388 E Hartford Dr., Suite 100

Scottsdale, AZ 85255                                                         

(602) 620-2699   DIRECT

www.AZGreenRealty.com

www.GotGreen.info                  facebook   Google + twitter   youtube   linkedin   pinterest   

 

Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

I agree with you that it isn't fair when the seller takes his house off the market while waiting for the short sale to be approved - but I am also sympathetic to buyers when the seller won't take his house off the market  and the house is still there for other buyers.  What about that 1st buyer then? All in all it is nasty business for both sides

Nov 17, 2010 04:09 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

I'm ethically torn about this one as well. The only approach is to be upfront about it with the agent.

Nov 17, 2010 04:09 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Lise & Michelle, thanks for commenting.  This short sale was input in June, contract first of August, and I only have one negotiator assigned to the first.  The 2nd, once again, killed the deal.  If they had gotten this assigned, I might have been able to keep it together.  ARGH!

I don't think the buyers agent was shopping around.  I sincerely think that the buyers got tired of waiting, once again.

Nov 17, 2010 04:15 PM
Lori Mode
The Mode Real Estate Group - Elk Grove, CA
Real Estate Made Simple

Jan - tough day for short sales all around it seems....I had a buyer walk today on one short sale and on another BofA came back with a counter $20,000 over market value & the sales price.  Short Sales can be frustrating for all involved unfortunately, however we are doing a great service by helping our sellers avoid foreclosure.

Nov 17, 2010 04:19 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You're right.  I'm about to go into a neighborhood where I see 7 NOD and no listings!  Those sellers are probably thinking they don' t have any options.  It does give you a good feeling to help those less fortunate.  No doubt about it!

Nov 17, 2010 04:23 PM
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

Cancellations happen so often with short sales.  So much can happen in 5 months.  Then it is absolutely insulting that banks want to bargain after you've been waiting so long.  But it happens.  Short sales will continue to be a challenge.

Nov 17, 2010 04:25 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

It is a hot mess.  While I am totally sympathetic to the sellers and while I advise my buyers of the "bad and the ugly" of short sales, including the timeframe, sometimes buyers get nervous about rates going up or other issues and just cannot take it any more. If the banks were prepared to substitute another buyer in the process without having to start over, that would really help!  Yeah, if wishes were horses, right? 

I don't know where I come down on the multiple offer writing; fortunately I have not had a client who wanted to go that route and if I did?  I would probably refer them out.  It's just not something with which I am totally comfortable.

Nov 17, 2010 04:27 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You're right Tni. I get so frustrated waiting on banks to "find" files, and assign a negotiator. Hopefully, this will improve.  I feel sorry for the folks who had to do a short sale early in the game when the problems were even more escalated!

Nov 17, 2010 04:28 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thanks for your comments Susan.  I understand how you feel. I didn't have a good feeling about another client who kept asking me to write offers on homes in the same area.  I began to wonder if someone was going to figure me out as I kept driving the same neighborhood!  Lucky on this one that the Foreclosure Date is the end of January, so I can hopefully put another contract in place and get this thing sold!

Nov 17, 2010 04:32 PM
Craig Chapman
Call Realty / Access Appraisals - Mesa, AZ
The Value Guy

I think much of it lack of commitment from buyers. Even if they were only committed to only one house in the beginning, by the time 4 - 6 months go by in a declining market, other more attractively priced listings become available.  Who can blame them.  Would anyone want to buy a house for say $150,000 when the value had slipped to $145,000?  Not to mention the issue of a appraisal not being able to support the same sales price than it might have been able to 4 months earlier.

The banks really have to get their acts together so they can move a lot faster on any property where a short sale is going to cut their losses.  Maybe the short sale contracts should offer a sales price or the appraised value if lower, after the bank makes everyone wait for several months. That way the buyer could be benifiting by waiting as prices continued to decline.

Nov 18, 2010 11:40 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You're right Craig.  I'm so tired of the 2nd lienholders taking so long to make a decision.  I understand they have to contact all of the investors, but there has to be a faster way.  Your last statement is a good idea.  At least they would wait out the sale.  Best of luck to you!

Nov 21, 2010 12:28 PM