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Does anyone want to make a deal happen these days?!

Short sales used to and still are the bain of most Realtors existence. Now to make matters the R.E.O.'s have become troublesome to deal with.

Where once before we were telling buyers to beware of the short sales and go for an R.E.O., now we can't even dispense this advice with confidence anymore. You would think with the current financial crisis deepening the banks would want to get these homes off their balance sheets as soon as possible, but their actions speak otherwise.

Every deal now with an R.E.O. property involves headaches which are out of the control of the buyer's agents. Several times now we've had buyers ready to fund on deals only to be left waiting for days for the bank to submit their paperwork to the title company. If the banks are controlling the title companies we use for these transactions shouldn't they have all the necessary paperwork (ie. Deeds of Trust) filed with the title company BEFORE they place the home on the market.

All the old time agents try to compare this market to those of the S&L era (circa 1988/89) or the stagflation era of 1979-82. Having lived through those eras, having seen and read the news from those eras, those markets were a tea party compared to what we're facing now. At least people did their jobs back then. Nowadays my business partner and I spend most of our time doing the work of the listing agents, title people, and lenders in addition to our work. Something has got to give here.

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Posted by Jerry Murphy on 07/15/2008 08:21 PM

Comments (5)

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5 Comments on Does anyone want to make a deal happen these days?!

We've all experienced these frustrations with REO and Short Sales. I think it is just the sign of the times. Sounds like you're doing what you can to stay on top of things, that's all we can do. foreclosures and short sales aren't going to go away any time soon. We'll just have to get through it- caution our buyers to expect things to be complicated, and do our best to guide them through the process. Patience is the key to the game I think

07/15/2008 08:29 PM

by Paul Kaplan, MidCentury Properties, Condos, 1st time buyers, in Palm Springs (Christies Great Estates/Pacific Union GMAC Real Estate)

you are right..it is very difficult..I also have to do all the work- the listing agents are too busy and they really don't care about the buyers.

07/15/2008 08:31 PM

by Michael Shankman Selling Las Vegas 702-498-3383 (Liberty Realty )

I have been having so many problems as well! It is practically a MUST now a days to hire an assistant just to stay on top of the transaction to make sure the Buyer's agent and the lenders are doing their job and haven't dropped the ball. I have one Short sale and we are on our second offer because the Buyers walked cause the asset company took too long to approve the sale. this one is full price cash and I have already provided proof of funds...Their response? "Thank you for your email I will be out of the office on the 21ist." Ha these buyers wanted to close on the 24th..think that will happen?

07/15/2008 08:35 PM

by Raylene Lewis (Century 21 Beal, Inc.)

I just cancelled an REO myself. I submitted an offer well over asking. I wanted to close by July 1. Supposedly the offer was accepted by day 3. I never received anything back though in writing. The bank never opened escrow. 6 weeks went by, no response from the bank. I finally assumed the deal was dead and moved on.

Then the first week in July, they finally opened escrow! And demaned I close in 10 days!!! For every day past I was going to have to pay $50/day until it closed.

Crazy. So I just decided its not the right property and cancelled. However, had the bank responded in a timely manner, they could have had another property off their books.

07/15/2008 08:49 PM

I've been in the business a long, long, long time and have never done a REO or a Short sale, because of all the nightmares I have heard (in the past and now). My philosophy is to work my former clients and sphere and to avoid REO's and Short sales. I've assisted former clients to refinance their homes to keep them, worked with them to sell their homes before they become a short sale etc., ans so far I've avoided being involved.

From what I've read, I'm glad I have remained uninvolved with these, I know I've missed some deals but I haven't cried over them.

07/17/2008 08:39 PM

by Christopher Bonta,Realtor/ Integrity and Honesty (The Masiello Group)

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