I am often the bad guy in a Sacramento short sale. I'm the one whose job it is to say no to the buyer. The buyer's agents, the poor stressed-out guys, they have a tough enough job and they don't want to say no to the buyer. Nobody wants to say no to the buyer, so I'm the lucky one who ends up with that delightful job.
For example, I have worked on many, many short sales in which damage occurs to the home halfway through closing. Some kid breaks in, tears up the house and the buyer thinks the bank will give her a break on the price or renegotiate. She doesn't understand that the bank doesn't own the home. The bank has little incentive to do a short sale. She is fortunate that the bank has agreed to sell to her as a short sale. She is also lucky the bank hasn't demanded a higher price for the 4 to 5 months she's been waiting to close because prices have gone way up. She tells her agent she wants the listing agent to submit the damages to the bank and get her a price reduction, even after I've told the buyer's agent no, and no, and no, again.
The reality is the bank knows the seller can put this back on the market and command 5% to 10% more than its present sales price. And we will get it. In its present condition. The bank doesn't care. In my younger days, I tried to fight but the answer always came back the same. No and Hell no. The slim chance that it might get approved, the tiny, miniscule slim chance, is not worth effort. Reality is if the buyer doesn't want to close under the conditions that are present now, she can cancel, and we would close faster selling to somebody else than dinging around on this. Short sales are sold AS IS.
Same thing when it comes to canceling a short sale contract. The short sale addendum states how long the buyer is willing to wait for short sale approval. When that time is over, the contract has expired.
Read more in my professional blog today about When Your Sacramento Short Sale Contract Expires.
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