Short Sales going BUST - Some common reasons and possible solutions

Hey Kris - I agree - Buyer should have rights protected in any contract - However, we have hundreds of agents we work with nationally that all have this same complaint--because, unfortunately, there are buyers out there that are "playing a game." They put in an offer on a short sale just to see where it will go with no intention of performing. If the agents haven't sniffed this out , then they end up with a dead deal no matter their hard work. Unfortunately too, is the affect this has on the seller who is in distress and possibly facing a foreclosure clock that will not quit ticking or home values that are declining while the foreclosing lender thinks the BPO value from months earlier is solid. Now, back to buyers having rights - Definitely!!!! Sally and David - You are doing a great job vesting buyers and their agents - Thank you! You are a great example that we want more agents to follow! Amy @ The Southeastern Group www.ManagesMyShortSale.com

Good afternoon Bob & Caroline - Thank you for commenting. I AGREE THAT THE LENDERS TAKE FOREVER. There are two key ways around that problem....you see, the first contract on a short sale is statistically not the one that ends up at the closing table. 1) If you have a buyer bail because the lender takes forever (esp Fannie or Freddie backed loans) - you will have still gotten the "short sale ball rolling" and will likely learn the minimum net required by the lender or investor - and you can market effectively for a replacement buyer. Provided you are in open communication with a negotiator - you can get theh new buyer on board and they won't have to wait long at all. 2) We will often approach wholesale investors to put in an offer on a short sale --- to get that ball rolling. If the lender approves their offer, then the investor gets a great deal....but, if it is denied then - again - we likely have the approved net and can market effectively for a buyer who won't have to wait the long game.