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SHORT SALE BUYER CANCELLED CONTRACT EPIDEMIC - DIAGNOSIS AND CURE
This past week my office had 5 short sale buyer's walk from their contracts!  Although I use an exclamation mark, it is not an unusual occurrence.  In fact it seems that it takes 4 contact buyers to make a short sale finally happen.  If that was an average for a traditional sale situation, Realtors and title agencies would be climbing the walls. 
The general failure of short sale buyers to not close is the fault of the system created by the current finance and real estate sales market - but it needn't be.  Just consider:
1.  In a traditional sale, if there is a lien on the property does the Realtor negotiate to make the lien go away?  Of course not.  If there is a lien then the seller should get an attorney to clear the lien. 
2.  In a traditional sale the buyer is required to make a good faith reasonable deposit to escrow.  Why on earth do we see buyer's making a deposit conditional on the lender accepting the "contract" (or whatever it is since there is no deposit).  Why do we see $1,000 deposits for $300,000 contracts - that makes no sense either. 
3.  In a traditional sale ... more

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