How do you know that short sale will close? I get asked that question from buyer's agents. Why? Because I'm a Sacramento short sale agent. I am not so full of myself that I would presume that every agent out there knows how much business I do. And even if they did know who I was, my success doesn't imply, necessarily, that I list short sales that won't close. We short sale agents can't always call 100% of the shots. But I come pretty darn close to it. My reputation depends on it.
I want a buyer's agent to feel secure that when an agent goes into escrow with me, we will close. You know why agents show homes? They want their buyers to close escrow. It's my job to make sure that the contract they enter into with my seller gets approved by the bank. I will move heaven and earth to do accomplish that, and I believe my track record proves it.
This is why I don't accept every short sale that comes my way. If I list a short sale, it's because a) I want to work with the seller and b) I believe it will close. Those are my two rules.
If a buyer's agent in Sacramento sees my withdrawn listing in MLS, which is a rarity, the odds are I no longer wanted to work with the seller. There are sellers who try to game the system. It's hard to tell the difference at inception sometimes, but as the listing goes on it often becomes apparent. That's not to say that every seller who hasn't made in payment in 2 years is gaming the system because that would not be a true statement, but some kinda get used to not paying.
However, I have, unfortunately, had sellers get short sale approval and then decide they want to continue living rent free. They did not want to accept the short sale. Nobody will make them do it, either. So, they go back to requesting a 4th or 6th loan modification that they won't get until they find another unsuspecting agent to list the home as a short sale. This can go on indefinitely because our mortgage system is totally messed up. But it's not fair to the agents who put in all of the work and who care about these sellers. Because these agents are working with a scam artist.
You Sacramento short sale agents -- look out for these scam artists. Don't get suckered by them. Qualify your sellers. If you're sitting at the kitchen table and your gut tells you something is wrong, listen to it. Get up and leave.
My second rule is if I don't believe a short sale has very high odds of closing, I also won't list it. A potential seller called me a few days ago to say she adopted 3 kids and needed a bigger house. So, she and her husband bought a new home and now want to short sale their existing home. Strike 1. They have a hard-money second loan. Strike 2. They have no hardship and can afford to own both homes. Strike 3.
While I understand the need for a larger home with 3 additional children, the bank will see that move as a lifestyle choice and not a hardship. I might even have been tempted if it was a Bank of America short sale, but it was not. The second lender, in their case, could go after them after a foreclosure and would be unlikely to grant a release of liability. No release, no short sale, not since SB 458. There is little incentive for the second to approve that short sale.
So, rest assured that if you spot a Sacramento short sale listing by Elizabeth Weintraub, that listing is probably going to close escrow. I do my homework. I don't work with deadbeats, and I work on the short sales that will close. If I say it's likely to get approved, you can pretty much take that to the bank. Not to mention, my short sale clients are some of the sweetest, nicest people you'd ever want to meet.
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