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Explaining to Kiplinger Magazine How a Short Sale Works

By
Real Estate Agent with Elizabeth Anne Weintraub, Broker DRE #00697006

short sales

One of the interviews I gave last week was to Kiplinger Magazine. I spoke to this reporter a while back for an article about home selling. But this time she wanted to talk about short sales. You know, I'm glad I made her chuckle, but the following is all true, and every short sale agent knows it; even though few really want to admit it. Here is part of our conversation (and no, I am NOT making this up):

Kiplinger: So, what happens after you send the short-sale package and offer to the bank?

Elizabeth Weintraub: The bank loses it.

Kiplinger: OK, after you send another package, what happens when you call the negotiator?

Elizabeth Weintraub: Nothing because the negotiator's voice mail box will be full.

Kiplinger: After you get the short sale approval, then what happens?

Elizabeth Weintraub: The buyer's loan docs expire, so we order new loan docs and go back for an updated short sale approval letter.

Kiplinger: When you get the new approval, then what?

Elizabeth Weintraub: Then the bank decides it wants more money.

Kiplinger: After you reach a final negotiation with the bank, do you close then?

Elizabeth Weintraub: No, because by then the buyer walks away from the deal.

Look for the article in Kiplinger Magazine in February of 2009.

Elizabeth Weintraub Land Park Real Estate Agent in Sacramento

Photo: Big Stock Photo

The Short Sale, by Elizabeth Weintraub, coming from Archer Ellison in January 2009.

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Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

Comments(19)

Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Elizabeth, working with short sales you have to have the patience of Job. Your interview proves this.

Nov 18, 2008 04:20 AM
Nancy Larson
I am a licensed referral agent in NJ - Hutchinson Island, FL

Elizabeth, I would love to learn about Short Sales, and only a true veteran of them, can explain. Any suggestions where I can find these answers to all my questions?

Nov 18, 2008 04:44 AM
Anonymous
Lorraine

This is so funny and sadly all true. But I have one more to add. The bank (FINALLY) made a decision for one of our short sale contracts and the bank rejected the deal because the price was TOO HIGH.

Because of PMI insurance, the deals have to be less than 20% of the outstanding mortgage.

 

Lorraine Conoby, GRI- Associate Broker

Lconoby@weichertne.com

 

Nov 18, 2008 06:26 AM
#3
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

JOB award!  you get one.  You have the patience of Job. And Job is also listed as one of the wisdom books of the Bible and you quailfy for wise too. :)

Nov 18, 2008 07:00 AM
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Elizabeth

I always admire the fun you can maintain each day; only you my friend can have such a great smile after negotiating all day.

Sincerely

Tom Braatz

Nov 18, 2008 08:18 AM
Jessica Beganski
William Raveis Real EState - West Hartford, CT

Too funny.  You're obviously a short sale expert. 

Nov 18, 2008 08:39 AM
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

This blog is so funny.  Perhaps these are reasons why I don't try short sales.  They have to be too frustrating.

Nov 18, 2008 12:08 PM
Melanie Ross
Coldwell Banker Solano Pacific - Benicia, CA
Benicia CA & Vallejo CA Real Estate, 707-319-2828

I laughed so hard because it is so true.  An agent in our office several weeks ago has a short sale with countrywide.  He kept faxing the information and the fax said it was received.  He comes to find out that the fax machine number they are giving out does not work, yet they kept giving it out.  He was fit to be tied and sent everything fed ex with receipts.  OF course that may make us feel better, but once they open the fed ex...oops who knows where it goes.

Nov 18, 2008 12:19 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Elizabeth - This is outrageously funny - BUT only because it is so true!  You have TOTALLY restored my faith that you REALLY do get it about "short-sales."  You really educated Kiplinger, and the rest of us, on this important facet of real estate sales.

Nov 18, 2008 12:30 PM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

Thanks, everybody. I do my best to educate and entertain. It's like, I dunno, my mission in life.

Elizabeth Weintraub Land Park Real Estate Agent in Sacramento

Nov 18, 2008 01:39 PM
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

It would be funny if it were not true. The banks don't seem to understand the need for a bit more speed in the process.

Nov 18, 2008 03:00 PM
Jesse Clifton
Jesse Clifton & Associates - Fairbanks, AK

Elizabeth - I can just about hear the dialogue... too funny.  The sad part, of course, is that what you describe is how it usually works.

Nov 18, 2008 08:10 PM
Mesa, Arizona Real Estate Mesa Arizona Realtor
Homes Arizona Real Estate LLC - Mesa, AZ
AzLadyInRed

Hey Elizabeth...you're right on! It's gotten so I won't even think about bank owned - if, it is possible, they're even worse in my mind. ;-)

Pepper

Nov 19, 2008 01:19 AM
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Ain't the truth fun? Especially when talking to a reporter. Great representation of a difficult process.

Nov 19, 2008 05:18 AM
Lisa Spalding
Casa Latino Four Corners, REALTOR, CDPE - Longwood, FL
REALTOR, CDPE

Elizabeth-- He he he he he!  The complete pain/headache/etc. of a short sale...  You forgot the ever-possible "The bank assigns ANOTHER short sale Negotiator who says that the Third-Party Release of Information is no longer valid, and you have to get one signed that says the Release is good "for the life of the loan."!"   Eeek!  Seriously, though--GREAT post.  :)

Nov 20, 2008 02:57 AM
Mike Klijanowicz
Cummings & Co. Realtors - Perry Hall, MD
Associate Broker @ Cummings & Co. Realtors

I had to laugh as well, but it is sooooooo true!  This is exactly why I do not and will not participate in the short sale process and will instead continue to refer any and all short sale business to another agent in my office who doesn't mind the work with the risk of not getting paid.

Nov 20, 2008 03:22 AM
Debi Ernst
St. Charles County, Missouri - Prudential Alliance Realtors - O'Fallon, MO
GRI, e-PRO, Broker/Sales Associate

Elizabeth - LOL!  You always make me laugh - I guess it's so funny because it's so true...unfortunately...  :)

 

Nov 20, 2008 06:29 AM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

Elizabeth - Thanks for the humorous take on a frustrating topic.  It sounded exactly like the experinces I've had.

Nov 21, 2008 02:50 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

You guys are welcome. I thought just telling the truth was a lot funnier than trying to put a spin on my answers. The magazine article will be out in February, so be sure to pick up a copy of Kiplinger!

Elizabeth Weintraub Land Park Real Estate Agent in SacramentoElizabeth Weintraub Land Park Real Estate Agent in Sacramento

Nov 21, 2008 12:10 PM