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Short sales and foreclosures are like big ugly zits! Winchester/Frederick County has a serious acne problem!

Short sale aggression I bet your neighborhood has one of each! Mine has two foreclosures & one short sale on the market. You may even feel aggression towards that neighbor because you feel their asking price is dragging down the neighborhood and even cutting into your own personal equity.

The sad truth is that many agents in this area put ridiculously low prices on homes which are short sales to generate interest in a listing in hopes that a speedy offer will occur. Unfortunately, this makes the other homes in the neighborhood look overpriced even when they are priced well.

For buyers, many are unaware that listings are short sales until after they’ve submitted an offer. I know it’s happening, because people love to share their battle stories to anything with a PULSE!

The first question most people ask is, “What the heck is a short sale?” A short sale is when a home owner sells his house for less than what he owes the bank. This can only happen when the lender agrees to accept the proceeds of the short sale and forgive the balance owed on the mortgage. This is typically done after the owner proves hardship of some sort and that they can no longer afford to make their mortgage payments. The bank is then able to avoid a lengthy and expensive foreclosure.

Short sales are not easy. I only recommend my buyers consider one when they are patient enough to handle the uncertainty they come with. Some banks are so overwhelmed with short sales and foreclosures, they move at a snails pace.

Rather than take out your frustrations on your neighbor, bake them some cookies and be thankful that your only fear is the inability to refinance when you decide to put in that pool or buy that RV! You’re living on a rock, and their little sand castle is slowly melting away, along with their credit…

If you want to read more about short sales, here are two three great pieces:

Elizabeth Weintraub explains why a lender would do a short sale.

Lenn Harley provides extensive coverage on short sales and sparks an excited trail of comments from agents and the public across the country!

Matthew Rathbun discusses why a Seller might consider disclosing their status when pursuing a Short Sale.

Update: 4/22/08, via Twitter, Matthew suggests buyer agents put in the offer to purchase: "Seller to disclose short sale status if it exists." I felt that was a BRILLIANT suggestion!

Note: If you are considering SHORT selling your home, I’m not your agent. You need an agent with a tremendous amount of skill and experience with short sales specifically. I can refer you to one, but I will not personally list one myself.

Disclaimer: The information shared here is done in the spirit of entertainment. Please know that my blog is simply an extension of myself via my writings, and doesn't necessarily reflect the opinions of the Active Rain Real Estate Network or my brokerage or broker. While I love comments from all readers, I'm not responsible for the ones made on this blog. The information I share is felt to be accurate, and will be corrected should any mistakes be pointed out. Whew. What I really mean: enjoy this post!

Winchester Living - Realty Direct of Shenandoah Valley Winchester Living - The Apple Capital

Natalie Langford, Realty Direct of Shenandoah Valley, 149 Creekside Ln, Winchester, VA 22602, John Orem Broker, Licensed in VA Equal Housing Opportunity

Posted by Natalie Langford, Winchester, VA Real Estate on 04/15/2008 07:54 AM

Comments (9)

in the Real Estate Investing Channel

short sales, winchester va real estate, frederick county va

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9 Comments on Short sales and foreclosures are like big ugly zits! Winchester/Frederick County has a serious acne problem!

APR

2008

Natalie , I feel your pain. I just went thriugh a short sale and got all the way to the Hud and were short 200 dollars. the buyer was stubborn and the seller was broke. I said I would pay the 200 bucks for him but the buyers agent was nasty so she ended up looking for a house elsewhere after wasting my time. This zit popped. What a relief. I was frustrating.

Note: If you are considering SHORT selling your home, I'm not your agent. You need an agent with a tremendous amount of skill and experience with short sales specifically. I can refer you to one, but I will not personally list one myself.

Wow how honest and heartfelt. I wish more agents would recognize their limitations, lack of desire or dedication or would stand up and say as you have...I'm not going to list it. Instead we get agents who are practically clueless. An agent in my office just went through a transaction that involved a short sell with that kind of agent. The whole transaction was a nightmare for all involved!

GO YOU!

I totally agree with you, Natalie. There's a "short sale specialist" in my area who is listing these homes at unbelievably low prices and of course generating alot of interest and a quick accepted offer. But guess what, 2-3 weeks after the accepted offer, you'll see the listing as "back on the market" with a higher price. I noticed that on at least 3 of her listings. How silly! So I'm here telling my buyers..."not available, they have an accepted offer already"....then "back on the market" but at $20-40K higher. I think it makes us all look confused.

APR

2008

BRAVO, Natalie! Too many agents are using distressed sellers as guinea pigs these days and it's just wrong! We must refer those clients in need to the pro's that REALLY know the ropes.

Rocco, that's just a sad, sad story you shared. It's commendable for you to try to get it to work, and shame on the other agent for not being a positive and patient party. I hope the property sells soon.

Thanks, Kathy. Sometimes I call myself a real estate geek, but I know my limitations!

Kim, I'm seeing the same thing here...only some of them end up in the paper as foreclosures...

Amanda The only guinea pigs in my life are my family - every night when they show up to the dinner table!

I handle short sales on a reluctant basis, mostly by referral, but they are not my choice of transaction. In fact, I believe short sales are no bargain for buyers whatsoever, and I set parameters to eliminate them from searches that I send to my buyers. Go put "short sales no bargain" into Google, and you'll find 11 very good reasons not to pursue short sales. I also print this and give it to all my buyers so they understand.

Every once in a blue moon, an exceptional home may come on the market as a short sale, but otherwise, I say forget them. And you're right, agents make up those prices, and that's the part buyers don't understand. Well, that and the other 10 reasons not to buy a short sale. :)

APR

2008

Hi Elizabeth. Thanks for stopping by. My auto email comment machine must be on vacation again because I didn't know there were any new comments.

It's interesting to find out that you handle short sales on a reluctant basis. My colleagues read this post and had a little giggle about my little notice on not listing short sales myself. They didn't call me a chicken, but they were amused.

APR

2008

NATALIE - These low-priced short sales are not doing anyone any good. The bank will not likely accept an offer of a home that is far below market value, and it does make the other homes look more expensive.

Well, Natalie, short sales are a lot of work, and they don't always pan out. I figure my time is better spent working on transactions that are likely to close. I'm not in this business to handle a huge volume of sales, so I pick and choose whose properties I want to list and which buyers I want to represent. I figure I sleep better at night this way.

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