Short Sale Agents- What If Your Seller Does NOT Make A Move To Close?

I learnt everytime I do a short sale...... I feel I grow up every single time!

Nestor and Katerina,  You bring up very good points.  I have not experienced this yet.  It is so important to really KNOW the sellers motives when listing a short sale. 

And some sellers just cannot face reality and ask for extensions, too. Just had it happen to me.

Short sales are a difficult decision for many people but it may turn out to be the most beneficial choice when your loan situation leaves you upside down.  If you are a seller in such a situation you should  contact a local agent for more information

Katerina, each one is different and as of yet have not been asked for an extension but I stay 'close to the vest' on all my short sales & the sellers know from day 1 what is expected of them at the end of the transaction if successful...great points..

So far the sellers haven't been my challenge, its been the banks demanding "sellers sign unsecured loans/ promissory notes" and the sellers of course not wanting to sign so it salemates and we end up back at the drawing board.  I think the seller not cooperating at the end would be even more frustrating, at least I expect the bank to be stubborn.

Hi Katerina

Great topic-so lad you wrote about this!  I think we as professionals have to have a clear understanding f what exactly wre have been hired to do. Getting paid to secure a ready willing and able buyer is part of the contract. Not getting paid until closing is a seller convenience. Seller's not willing to cooperate need to have a clear understanding of the BUSINESS relationship they are entering into, the expense associated to the listing agent as part of that agreement and how compensation will be paid.

A check list is mandatory-and if you seller is unwilling to cooperate, you need to terminate that relationship from the onset. That is also A BUSINESS decision.

2 Weeks ago I closed a fiasco of a short sale.  Not because of the Sellers Lender but the Seller Himself.  He put up more hurdles for me to jump than I care to list right now.  When push came to shove it was the buyers lender needing an extension....short sale lender was on board with it and we closed but even that had to be made difficult by the seller with a seperate closing and "can you ask the buyers if I can keep some stuff on the property for three days after closing?"  I KID YOU NOT!!  I actually had to go to the house and clean out the fridge for the buyer.  "As/Is" does not include rotten food and a stinky fridge in my book.

It did close and everyone is happy (especially me) and we are moving on the sell the buyers home and get the short sale seller into another home.  I guess the world keeps turning and we just have to roll with it. 

Katerina, if my seller is not super motivated then I don't want to deal with them.

I was in the extact situation this past summer.. Buyer loan approved, ready to close, then sellers decide they will not move forward because their attorney informed them that bankrutpcy will stop foreclosure and buy them time.

I made it a point to cut off loose cannon clients quickly in 2010. I have had a few clients headed this way and as soon as I see it happening, they get one chance to correct their behavior. If that doesnt happen, they get fired. I think I have fired maybe 4-5 clients this year. I just dont have time for rogue clients. There are too many motivated clients out there that will appreciate your efforts and genuinely want to help themselves, to waste time with the bad ones. You can usually spot these types upfront and not even take the listing, but sometimes it takes a little while for their true colors to come out. When it does - sayonara!

That may sound a little harsh, but you know what - I have not had it get to the point youve described. I'd really rather end it far before it gets to the point that I have to ponder sueing my clients.

It's amazing I never really had problems getting sellers out until short sales came (back) to our market.  I had at least two where I represented the buyer and had to threaten both legal action and refusal to close to get the seller out.  Now I do prefer to have short sale sellers out 5 days before close if possible.  I guess when you think you have nothing to lose and if you are not making a payment, it is tempting to try to draw it out even longer.