I don't know about other states, but in Utah our real estate market is still pretty stong and has been. I see short sales popping up and have one qauestion on my mind. Why, if someone bought a home one, two, three, or more years ago, and now they can not make the house payments for whatever reason, is the home worth less money. I have had two people come to me and said they were behind on their mortgage payments and wanted to sell their house. We put the house on the market, sold it, and paid off the mortgage company and put money in the seller's pocket. The only reason I can think that someone would do a short sale is if the house was over priced when they bought it or they are in an area where prices have dropped way down. Since this isn't the case in Utah, I just can't understand short sales.
2nd question: If the seller wants to do a short sale and they have submitted the correct package to their lender for approval of the short sale, why do all the short sales say, "Subject to price approval of a third party"? I've done two short sales, and both time I had the seller submit the required documents to the mortgage company, they sent out an appraiser, gave us a price to list the house at and we sold them both within 15 days of getting the price approval from the mortgage company. We have one house in Syracuse that has been sitting on the market for over a year and they had a full price offer on it because I wrote it for one of my clients, but we didn't get the home, and it is still active on the MLS.
I just seem to have a problem with both of these questions and wonder what is going on.
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