SHORT SALES!!!  I don't know about the rest of the country but in the Sacramento Region there are plenty here.  The latest information is showing that only 1 in 5 are actually closing and the ones that do close are anything but easy.  As a rule I try to avoid them.  Honestly it not for my sanity but for my clients.  I try and educate all my clients about short sales and what is involved in them.  Most agree and dont want to tread in those waters until they see that little sparkle.  The perfect home with a well below market price.  They feel that they must see it.  I tell them the price is not real it is a short sale that has not been approved by the bank.  They no longer care and want to make an offer, they tell me they can wait and are not in a hurry.  I tell them it can take months to move in if we get the house at all.  They tell their friends and family about it and cant help but to get excited.  I let them know that the sellers have agreed to the offer but it depends on bank approval.  One, two, three weeks go by, no approval but it has been assigned to a negotiator and 5 more offers have been made on the house.  Four, five, six weeks have gone by now still no approval, but LOOK OUT the NOD states that the foreclosure auction is three weeks away.  Weeks seven and eight have now been spent getting an extension on the foreclosure, whew!  Week 9 the bank appraisal has been done but no approval yet.  Week 10 we finally get the bank approval, yippee.  Week ten the bank makes a blanket counter offer to submit your highest and best offer.  My clients are excited and want to make an offer $10k over asking, but now they are worried because there are twelve other offers on the table now.  Week eleven our offer is not accepted.  My clients are very sad.  Week 13 we get a call that the accepted offer has fallen out and ours was next in line.  Week 14 the bank accepts our offer, all inspection are scheduled but it is difficult because the power and water have been shut off due to non-payment by the owner.  The once lush green lawn is now dead but my clients push on.  Weeks 15 and 16 go by, no problems but the phone rings.  The selling agent states that the estimated closing costs for the seller are more than he has and wants to know if I will pitch in some of my commision to close the deal.  Not to loose this deal for my clients over a couple of bucks I agree.  Week 17 we are set for closing.  Now there are several ways for this transacton to play out: 1.  The deal proceeds as planned and it closes, my clients are happy. 2.  Some unexpected things happen in the market and the loan is delayed a week pushing it past the agreed upon date and now we have to wait 2 weeks for an extension to close the deal.  3.  The transaction took longer that expected and now the foreclosure date is coming and the deal wont close before hand and the selling agent can't get ahold of the right people at the bank in time.  We loose the home by a couple of days. 

Short sales, they take a long time but ultimately its the buyers that suffer the most.  The past 4 or 5 months of emotion turmoil have taken their toll on my clients.  They have lost the joy of buying their home.  they are tired of the process.  They are now not thinking they got a real deal.  And worst of all its my face that they associate with the whole process.  They are all not like this  but most of them are.  If you are a buyer reading this please take note.  Know what you are getting into.  Agents make sure you educate your clients fully on what a short sale is and what is involved.  It may not be the same everywhere but here in Sacramento its rough to buy a short sale. 

Please let me know how short sales are going in your area.  I would love to hear about the good, bad and the ugly.

Thanks

Steve Jacobs