HEY Short Sale Seller - GET OUT!!!! of our new home...

Interesting perspective about employing a particular type of RE agent in order to deliver performance. Heck, aren't all RE agents professionals and knowledgeable to provide their service? Sellers usually choose the RE agent who lists the property at the highest price and that's why homes in that inventory linger on the market almost indefinitely and don't sell, right?

Great post.  I liked the links to the Top 10 Tips for Buying & Selling a home.  Very nice touch.

Thanks!

With a good agent, the sellers should have a good idea of the timetable. I can see not wanting to jump the gun too far, since you never know if any sale will close until the paperwork is signed and the loan is funded. I have seen transactions fall apart the day before closing.

seems to be happening mroe frequently- short sellers that are not leaving!! as a result, I now start to ask where they are going when the sale closes escrow

Oh boy, what a situation!! You are so right, a knowledgeable Realtor will set the Seller's expectations right, and advise them how wrong it is to stay in a place after closing. Good post, think it's great that it got featured.

Wow!  I am in the process of short selling my home, and this post makes me really grateful for a great listing agent.  One of my main concerns was how to know the timing of when I'd need to move.  I made sure to select an agent who specializes in and has lots of experience with short sales.  The process has been smoother than I imagined and has gone relatively quickly.  We listed the home at the beginning of May, and we received a cash offer on the 1st day that was above asking price.  We just got the bank approval yesterday.  Close of escrow is next month on the 7th, and I have moving day set for the 30th of this month.  My agent and the whole team have been wonderful at communicating and answering all my questions along the way.

All my short sales have been vacated shortly after going on the market. My last BOA short sale required the sellers to vacate 10 days prior to closing. This will be good to consider discussing when at the listing appointment. I believe that  giving  tenant occupied properties notice at listing would be best in these situations. Most sellers have already stopped making payments anyway so having the property vacated prior to selling would be in their best interest anyway. Tenants can be very difficult to deal with when trying to show a property they currently occupy. Delaying getting a sales contract could be the difference between a short sale and a foreclosure.

Good list, along with Satar #43 above.

Hi Scott.  Great post to get us thinking.  I only had one seller who refused to move prior to closing.  She wanted the move-out money the lender promised her before vacating the property.  Well, we had a few conversations on why she needed to move out before or on the day of closing.  We went over the Residential Purchase Agreement she signed and the lenders letter promising her the move-out money.  Thank God she agreed, moved out on time and took with her what she was suppose to.  Other than that I haven't had an issue with my short sales.

I agree with Beverly (#51) about the Sellers having the opportunity to set aside a few dollars. Many of my sellers in short sales haven't been paying the mortage for at least six months, so they've had a bit of time to set aside the money needed to make the move. Here in Delaware, Sellers have right up to closing to remove the contents of their house, so though it might be desirable to do the walk through when the property is empty, it isn't always empty at that time. 

I've never had an issue with my Sellers being out on time for settlement with any of my short sales. Good communication with my Sellers right from the start or when I represent Buyers, verification that the Seller's agent has prepared their client properly, has always led to the house being empty and vacant at Settlement. 

Did have one regular sale (Buyers were my clients) where the Sellers weren't moved out by Settlement (excuses about the moving truck breaking down) so the police were called and the Sellers were escorted out of the house in which they had, by then, become squatters.

Although your blog talks about a real common issue facing short sales, it doesn't provide any solutions. Being local and experienced with short sales does not help an insolvent seller to suddenly come into the means necessary to move. As a buyer's agent you cannot force the sellers out at closing. Your client already invested time and money on obtaining the property.

You provide no real solutions other than discussing an exit strategy for your sellers. What do you do when they don't have the financial means to move? Not take the listing?

@Travis - Comment 72 - Thanks!

Scott,

Never had this problem. Its why we always go over all the steps and dates. I guess folks in this type of situation can always act out, but there are remidies for that as well.

-Brent

Good points. Love your blog layout.

I have had similiar problems.  You have to be careful about how you handle those issues.

Hi Scott, luckily I have never had that happen on a short sale, but your post is a great reminder.  Thanks

Great topic Scott,

I always encourage short sale sellers to start looking for a new place right away if they can in any way afford it.  It helps them psychologically move on.  Of course, there are always the hold outs, who HATE losing their house to a short sale, and want to stay until the last moment and that of course makes it more difficult in the end.

When I represent a buyer in a short sale my position is the same.  Occupied means no closing.  PERIOD.  And, I personally go over to verify it before my client authorizes closing.

Tni

I'm not certain why a short sale should be different than any other closing, with regards to the timeframe the seller has to move out.  He/she is to be out of the property immediately upon settlement unless a post-settlement possession addendum has been signed and agreed upon in advance.  Otherwise, the seller has no legal standing whatsoever in occupying the property after settlement has occured.  Am I wrong about this?

Have never experienced this, however that is what a final walk through is for, preferably the day of closing to insure the sellers are gone and the property is in acceptable condition.

Kind of a shocker that this is still a problem after years of short sales.  The listing agent obviously should be advising the seller when they will need to be out, and the buyer shouldn't close unless the seller's stuff is gone during the final walkthrough.  Seems pretty simple.