What if short sales could fly?
Wouldn't that be nice. After reading and commenting on Richard Weisser's post My Short Sale confusion solution...can anyone tell me why this wouldn't work
I thought about this some more. What if Short Sales were handled like HUD home purchases? Would it work?
- A seller requests a short sale (via online form - standard form, with ability to attach documents such as hardship letter etc.)
- The bank determines the approved sales price, using set parameters (could include a CMA from the listing agent, BPO, appraisal or 3 appraisals etc.),
- The agent markets the house with the approval letter from the bank
- Once the house is on the market, offers need to be submitted by a set date - just like a bid for a HUD home
- The interested buyers still would submit the offer to the seller, by the deadline
- Seller looks at the offers and signs one
- Agent uses computer form to submit the information about the bid/offer to the bank
- The bank reviews the bid - it is acceptable - moving forward, if not the house stays on the market until an offer is reached that is acceptable
- If the house receives no offers or very low offers, it can be determined to adjust the price
Would it work?
What would it eliminate?
- lost faxes
- lost docs to file 13 (well some of it)
- incomplete packages
- unanswered phone calls
- hours of on hold
- resending documents over and over again
- wasted time
What still would have to be worked out is when there is more than one bank involved. Somehow the 2nd would have to get their number into the mix.
Also as Lenn Harley pointed out in her comment (above post by Richard) - the other thing still left hanging is what would happen if the seller has to sign a note etc. I can't see why that couldn't be worked out after the deal is under contract and the actual price is known.
Once the processes are in place - wouldn't it streamline the short sale process and actually make them more "Short Sale" than long sale?
I know there are many ifs, buts, etc. But What if?
I think I am done thinking about it for now... Thoughts?
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Copyright 2009.© Kenna Real Estate Rita Burke. Denver CO real estate. All Rights Reserved. Mar 8th 2009. "What if Short Sales could fly? Short sale solutions"