Short Sale Dilemma
I think that a Short Sale is a great alternative for some homeowners facing foreclosure. I have been doing more now than ever.
I do have a pet peeve with not only the short sale or should I saw LONG SALE process from the banks. But, I am also frustrated with the lack of information provided to us as Realtors working on these sales. There really is no policy in place for us to follow. If you talk to different realtors that are doing them, no two really do them the same. Here is what is bothering me.....
Once the contract is signed by the seller, is it technically under deposit?
Some would say yes, as the seller has agreed to the price and contingencies. The banks approval is really just a contingency right? So, the home is really under deposit.
Then, there are the other Realtors that believe that the home is still active, the seller agreed to the price and contingencies. But, it has yet to receive bank approval. So, with that said, the home is still shown, the buyer's agent is aware that there is a contact in house awaiting bank approval and additional offers are accepted, the same way that a back-up offer would take place.
So who is right? Ultimately, it is the bank's decision, and this answer may take weeks to months to decide. In the meantime, buyers get frustrated and walk away from the deal leaving the seller to have to start from scratch. Some banks welcome additional offers for review while they are working on the file. If the home was "under deposit" there would be no other offers to present. There are banks that only want to look at one offer at a time, but there is no reason why there can't be back-up offers waiting.
Here is what I think ~ As a seller's agent our responsibility is to our sellers! Most of the time when a seller decides to do a short sale, they are facing pre-foreclosure. Having an offer in house with the bank usually puts the foreclosure on hold. Now, what if the buyer decides to walk away or the bank does not agree to the purchase price and the seller's agent put the home as "under deposit".. For the length of the time that the bank has been working on the file, the home has not been active in the market. It could be several weeks or months to get another contract on the home. By that time, it may be too late. I really think that if the bank is the one with the final say, then the bank should be the one to decide if the home should continue to be shown for additional offers.
Again, I really think that a policy should be in place...
Comments(0)