One of the biggest problems in the Short Sale market is buyer loyalty. So many buyers write on a short sale but continue to look for homes. Once they find something else...they terminate their purchase agreement on the short sale. This creates huge problems for both the distressed home owner as well as the listing Realtor.
If your lender happens to be Bank Of America, a new buyer means you have to start the process all over. Wells Fargo customers are under strict time frames for getting documents back and closing so if the buyer walks...and there isn't a back up offer to send the bank the file is kicked out of the system and must be restarted once a new buyer comes to the table. This creates huge head aches for the seller and listing Realtor...not to mention extreme risk to the seller if the property is getting close to the foreclosure sale date.
The easiest solution to this huge problem is this...require the buyer to put down earnest money instead of using a promissory note. Also insist that the earnest money be non-refundable for 90 days so if the buyer walks...they walk away from $1000. This will ensure that your buyer is serious enough about the property that they are willing to wait. This will keep buyers from walking and get the property sold with much less problems.
To learn more about short sales, please go to our website www.ShortSaleAuthority.net to receive a free copy of our book "Home Owner's Guide to Real Estate Short Sales."
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