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Has any body had experiences with SHORT SALES?

By
Real Estate Agent with Premiers Sotheby's International Realty

My first short sale used to be a lot easier. Time used was much shorter and the bank was much more accessible. I am now involved in a 3rd short sale and it has been a nightmare. This has been going on since November and reaching the bank consisted of holding on and listening not to my choice of music for 2-3 hours, finally learned to at least call on speaker phone and work on other business in the mean time. Never got a contact name, neither did seller nor attorney. Finally got the word yesterday the seller is supposed to sign a promissary note for $ 110,000 for 30 years  which she does not have and is not willing to sign. We are trying to see if it can be negotiated. The message was loud and clear either do that or go into bankruptcy which she will probably decide to do.

This particular bank is in bankruptcy proceedings themselfes and nobody cares. I also heard a story were the bank decided the day of the closing to change the commission from 6 % to $200.00 to be shared by listing agent and sales agent. This apparently was decided by the mortgage insurance department not the mitigation department. In my 1. deal they never got involved.

After all this I am now waiting to see what the situation is with the next contract. I would appreciate to get feedback from you  and to see how this is being handled in other parts of the country.

I believe our industry can really help the country and the bank to get out of the horrible situation of short sales, foreclosures and auctions, but it is imperative that the banks work with us and cooperate to help with information during the process.

I need to rethink my position re short sales, there are enough good resale properties on the market which also have below market value list prices that if I have a buyer I will not put myself or my office and coworkers through this ordeal.

In all 3 cases I sold the sellers the property so I had to try to get them out of the situation, but I believe that in Marco Island and Naples many Realtors are starting to stay away from SHORT SALES.

Thank You for your feedback.

Bob Schenkenberger
Colorado Realty Professionals - Greenwood Village, CO
Denver Real Estate
Feb 25, 2008 03:18 PM
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

Helga:

Short sales are the bane of the real estates agent existences. I only know that I try to steer clear of showing properties that have short sales issues. Many times the listing agent doesn't have a clue of what is needed. Also, buyers get antsy when they have to play the waiting game.

The last short sale that I was in took five months to close and the commission was reduced to the point of almost nothing.

 

Feb 25, 2008 03:34 PM
Paul McDuell
Realty Benefit - Rancho Santa Margarita, CA

I'm representing a buyer on a short sale offer. It's with one of the large institutions. The listing agent, who is also a friend, spoke with the Lenders National Center for handling short sales and learned that they are getting from 400 to 500 short sales applications a DAY nationally!

It's no wonder they take a log time to resolve. 

I did a few short sales back in the 90's but I don't recall them being as difficult as they are today.

I try to avoid them as well.

Feb 25, 2008 03:41 PM