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In a short sale, is the race to the finish line becoming tortoiselike

By
Real Estate Broker/Owner with (831) 626-4000 CA #01772851 HI #RB-21268

Getting to the closing table is obviously our real estate business goal when we have signed sales contracts. And each one seems to have some foibles that especially need our attention.

This is especially true if it's a short sale. If you are the selling agent, you have to deal with the lenders. I know this can be a nightmare; however, at this point in time you don't just sit back and wait. You need to get in there and get it done. Don't leave the buyer hanging. The deal will not close miraculously all on its own. At the least, get in touch with the buyer's agent and give an update. And that update does not include the words "I haven't heard anything."

And what if you are the buyer's agent. Let's say the buyer has not been in any big rush, so you his agent have been a good guy and only checked back with the selling agent like a couple of times a month. But enough is enough.

Today is my first day of being the "squeeky wheel". I want to know:

1. What is the holdup specifically?

2. Have you even talked to a person at all?

3. Has it gone to the negotiator stage yet?

4. How are the sellers holding up? What have they heard?

5. Is the lender holding back on foreclosing?

I NEED TO KNOW SO I CAN ENCOURAGE MY CLIENT TO STAY THE COURSE, IF THAT IS NECESSARY.

Posted by

Hella Mitschke Rothwell, Broker/Owner/REALTOR 

 

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________________________________________________________________

Hella Mitschke Rothwell (R)

Real Estate Broker/Owner/Realtor®
Licensed in California #01772851 & Hawaii #RB-21268

Tel. 808-226-1095 or 831-626-4000 

Fax 1-877-822-9332

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Disclaimer: Hella Rothwell does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Hella, I always tell my buyers it is like the military.."hurry up and wait" only in reverse.  You wait and then the bank approves and says we must close by_____.  Wait and hurry up!

Feb 23, 2012 08:34 AM
Tonya Jones
Solid Source Realty, Inc. - Lithonia, GA
REALTOR®

Hi Hella, I hear you loud and clear because I list short sales.  Sometimes the buyers agents call me and email so many times it throws my day behind schedule.  I have started letting them know that the bank has given me a timeline for a response and that I will get back with them as soon as I hear.  I make weekly contact with the banks and sometimes daily contact. 

Feb 23, 2012 08:42 AM
Jon Eliason
EXIT Realty Advantage Pagosa, Pagosa Springs, Colorado - Pagosa Springs, CO

Hella ~ Being on the Listing side of a Home that is in a Short Sale status definitely requires communication. I send weekly emails and leave numerous voicemails. (I think they ignore both). This particular one, I hadnt heard back from them for over 5 weeks and this was already going into the third month. I let the Buyers agent know that we were not getting any response and it may take a little longer than anticipated. The buyer walked. Two days later, we get an email from the lender and it had a Counter-Offer attached... TOO LATE! The Buyer is gone!

Feb 23, 2012 09:00 AM
David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City

You need to remember that the loan servicer is being paid a fee by the investor. If the property closes, they no longer receive the servicing fee.

Feb 23, 2012 09:06 AM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Bob: Yes, that has been my experience. But I think the sellers agent needs to put a little fire under the lender to get his attention. THEN he can make me close fast. I'm ready!

Tonya: I like weekly updates, even every other week. But NOTHING for a couple of months? Now I am not even getting email or calls back on a particular one. Once I have made that call/email, I have been waiting for several days to get something back, figuring THEY need to check again. But nothing. Now I am getting "squeeky".

Jon: That's the scenerio I'd like to avoid. My buyer is interested indefinitely still. However, I am getting worried that if the selling agent isn't on top of it, it might go into foreclosure.

 

Feb 23, 2012 09:50 AM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

David: That may be. On the other hand, the negotiators I've been dealing with always pushed to get the short sale approved, then closed, because THEY wanted to get paid. So who is holding up the works in my particular case? That's what I want to find out.

Feb 23, 2012 09:53 AM