Short sales are a reality these days and are not going away any time soon.  A short sale is when the home is being sold for less than what is owed on the mortgage.  This is also called being upside-down (that's right, the picture IS NOT a mistake!) Normally, when this happens, an offer must be presented to the bank for approval and this process can take weeks if not longer.  And I don't know anyone that wants to wait that long for an answer.

The Wall Street Journal recently reported that Fannie Mae has launched a couple of pilot projects, in Phoenix and Orlando, that intends to reduce foreclosures by deciding on a price before a deal is even submitted.  This would take a major downside away from a short sale, THE WAITING!

When you are acting as a Buyer's agent you want the experience to be as easy and enjoyable as possible so your clients are left with those feelings and will tell their friends.  When your offer is rejected from a short sale it's bad on a couple of different levels. 

• Lots of time wasted.  Time the Buyer used to become attached to the home.
• Other homes have sold that the client liked.
• Interest rates could have gone up.
• Another month of rent could have to be paid.

I sincerely hope these pilot programs succeed and succeed fast!  I don't know any agent that wants a dark cloud hanging over their relationship with their Buyer and I know A LOT of agents that avoid short sales.  And when agents avoid short sales they most likely will become foreclosures...and no one wants that!

Krista Fuchs, Realtor.  Giving You The Attention You Deserve.  I can always be reached directly at 484-459-8025.  Prudential Fox & Roach Realtors, Exton Home Marketing Center 484-875-2600.