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Short Sales in Jacksonville FL

By Ronda Densford

Real Estate Agent with Magnolia Properties

June 12, 2008 02:10 AM

I am on day 63 on a short sale offer my client and I submitted. My buyers patience is paper thin! I don't know why, but for some reason I just KNEW this wasn't going to take the usual 90 days! My "vibes" were wrong. After speaking with the listing agent last week, we were told we'd recieve an answer yesterday. Now, they are saying possibly Friday. I don't think that my buyer will last past Friday! One more delay and we're moving on. It's a shame. We made a very good offer on the house way back in April. Our paperwork was 100% complete, his financing is all arranged and I thought it was a no brainer. Wrong! For some reason the process seems to have screeched to a halt. What is the deal with these lenders?? You'd think they'd jump on offers like ours!

Why do short sales have to take so long?? I have another couple that is considering buying a short sale and I honestly can't say that I am inclined to start another 3 month affair! The only saving grace in this deal is that the couple is locked into a lease that doesn't expire for 120 days. This might work for them. My biggest fear is that they will make an offer, 90-120 days later, the lender will reject it and they are stuck between a rock and hard place. Guess who would be the bad guy? Yep. The Realtor!! Even though I will have called at least once a week and will have bugged the daylights out of the listing agent. My efforts won't be appreciated because the bottom line is that they will have lost the house!

I'm just not a big fan, so far, of short sales. Yes, a good deal can be had, but the length of time it takes to get to closing is just unbearable! I just think it takes a certain client and the "perfect storm" for this to be an ideal situation. Maybe short sales are better suited for investors? They won't be living in the home, they just want to buy it at a discount and either rent it, or hang on to it until the market turns. I think it's really hard on a "normal" buyer to wait and wait and wait and wait. It's like their life is on hold!

Hopefully, we'll hear something Friday. I'll post an update.

Any Short Sale Gurus out there that would care to comment?

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BLR Guy

BLRGUY(Beach & Luxury Realty Inc) - Saint Pete Beach, FL

Ronda,there are more and more out there..so,it is going to take longer and longer...plus the one who makes the decisions at the bank doesn't have a personal stake..so they just take their time.

BLRGUY

Jun 12, 2008 02:14 AM

Ronda Densford

Magnolia Properties - Jacksonville, FL

Realtor - Jacksonville and Northeast Florida

I think you're exactly right! How are things in St. Pete? Lots of short sales there too? If it had only been, let's say 30 days, I could understand. But 63? C'mon. That just seems like a long, long time. :)

I won't give up until my buyer does. He is hanging by a thread right now, so I will too.

Thanks for the comment!

P.S. I love the St Pete area! It's one of my favorite parts of Florida.

Jun 12, 2008 02:22 AM

Brian Lee Burke

Kenna Real Estate - Lone Tree, CO

Broker & Advising Expert-Kenna Luxury Real Estate

I am sure it's been said before but here it are some of the few main pointers.
1. Time line depends on several factors: bank, knowledge of listing agent, BPO evaluation from bank etc.
2. We tell our buyers up front - if they insist on seeing a short sale that it is going to be awhile, sometimes a long while and are they up for it. Some times we proceed but at some point we may have to move on, because the buyer has to move.
3. If the buyer likes a short sale and has to move fairly quickly (I am using that term loosely) we make a call to the listing agent and see if they know what they are doing, have they already submitted an offer to the lender, what bank are they dealing with, is there 1st and 2nd etc. We want to know if there is a chance that the short sale might/would/may move "quickly"
4. Depending on a bank - just heard yesterday that Freddie Mac has implemented a 90 day wait period? meaning once you submit the paperwork you have to wait 90 days before anything happens. And no need to call in between that time.
Most lenders loss mitigation depts are so overwhelmed right now they have hard time keeping things in order.
To finish this off: 2 examples one from sellers side and one from buyers
We are just about to close on a short sale (listing agent) - and I am holding my breath - that started in January. We lost a cash buyer, but had others lined up and the lender said we would have new approval in 24-48 hrs (also cash buyer, price higher than previous approval) - it turned into a month. Finally got an approval and scheduled to close Monday.
Buyers have to move by end of this month. They fell in love with a short sale. Call to listing agent, who insured that he could pull it off, already had approved numbers from lender (he had a buyer who disappared but at least he had received the approval). 2 days after submitting offer got approval for 1st and day later for a 2nd. Scheduled to close by end of the month. (so total time from writing an offer less than 4 weeks).
Note. When it says approved short sale it can be misleading. Usually they had an offer and the buyer couldn't wait therefore there was an approval. However, in most if not all cases (at least here in CO) you have to get a new approval for the new buyer and contract. Some lenders do this quickly , some not so quickly.
Sorry, turned to a long comment :) ~Rita

Jun 12, 2008 02:35 AM

Mike Kelly

Sellstate Advantage Realty - Cape Coral, FL

Ronda,

PATIENCE is the key! I have been working short sales and I actuallt posted a story on my blog, here is the link http://activerain.com/blogsview/534997/Short-Sales-Are-Paying . I hope this helps! Short sales are not for everyone!

I wrote an offer on a short sale on April 24 and at that time, the listing agent said," Give me until August 31 for acceptance!" We agreed and yesterday we got our acceptance and are closing on June 30!! My client was pleasantly surprised and very happy with me! Why? Because this process exceeded her expectations! She was expecting to wait until August and now she doesn't have to!

By the way calling the listing agent every week does nothing, when he/she has an answer he/she will call you! He/she wants it as bad as you do!

PATIENCE is the key! Good luck!

Mike Kelly

Jun 12, 2008 02:37 AM

Ronda Densford

Magnolia Properties - Jacksonville, FL

Realtor - Jacksonville and Northeast Florida

Thank you Mike, for your encouragement. I read your blog and found it very informative. I know that I am being unrealistic. I just feel like I should have done a better job of preparing my buyer for the 90-120 day scenario. I DID tell him it might take 90 days, but I should have been more specific.

For future reference, I am considering making a brochure with info about short sales and detailed info on why it may take 90-120 days to get to closing. I may even get my clients to sign off on some kind of doc saying they are aware that it may take that long. That way, when the days go by, and then the weeks and then the months, I can remind my client that they knew going in that it might take that long. I just don't want any mad or disappointed clients.

If, by some fluke, it takes less time than that, AWESOME!! If it takes the full 120 days, at least we were all prepared!

Thanks again for your comment. I appreciate your input.

Take care and happy selling!

Jun 12, 2008 03:47 PM

Ronda Densford

Magnolia Properties - Jacksonville, FL

Realtor - Jacksonville and Northeast Florida

Rita! Thank you for the awesome comments! I really appreciate all of the info. I have 2 short sales listed and one buyer for another. I am holding my breath on the buyer "deal". I am supposed to hear something tomorrow. I'll keep you posted.

I see what you mean about the lender starting over with each buyer. My buyer is the second buyer they've had on this short sale. I think they threw out the BPO and everything. They went back to square one with a new processor and the works. Maybe that explains why it's taking so long.

Thanks again for your comments. They really have really been helpful.

Jun 12, 2008 03:54 PM

Jaime Tejera

The Edge Group - Jacksonville, FL

See, with conventional short sale realtors, you have to deal with that whole wait time looking for a buyer and they might back out. I negotiate with the lender as a cash buyer, then sell it to an end buyer. I've got attorneys and realtors that work with me. It's great and fully legal. I wish you guys the best of luck, if you need any help you can email me at jaime.tejera@fpsllc.net.

Also...

You should know:

The bank usually negotiates your commission to what 4%, if you're good 5%. (And that's all you get :( Sad)

Well with me you get that, plus the 7% on the B-C transaction. Oh and my negotiator does all the dirty work.

Good Luck you guys.

May 06, 2009 08:49 AM

Dmitry Mikhaylov

Komelot, Inc - Jacksonville, FL

Hi, Ronda!

Do not get disappointed with short sales.

Find the deal approved by lender and submit an offer for this deal.

This is easiest way to do it, you don't have to go through long waiting period.

There not that many good deals like this available unfortunately.

If you like to be a buyer agent work with Real Estate Investors like myself – see my profile. I will do an offer and will wait as long as needed for short sale to be approved. Investor will not bring you headaches and investor got money to close quick. This is way to go. In most cases investor can do loss mitigation if needed.

With best regards,

http://komelot.com/

Mar 24, 2010 03:13 AM

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