Well, it happened again... another showing was lost because a first time home buyers' agent saw the listing was a short sale. She did what every responsible buyers' agent would do and asked the listing agent just where she was in negotiating the short sale. And the response came back, "Well to be totally honest we haven't really done much yet." So, the questioning continued and the buyers agent asked "Have you sent in a package?" "What type of loan will you be shorting?" "Is there a second lien?" And as the replies ranged from "I am not sure" to "I don't know," the buyers agent realized she should probably steer clear of this listing, if she wanted to be sure her buyers would qualify for the oft sought after First Time Home Buyers Credit.
Yes, it seems to be a necessary evil these days, the dreaded Short Sale. And it certainly is making up a good percentage of the market. However, when you take a listing that needs to short the lienholder, you have only started a very long, somewhat arduous process. Sadly, many agents are not aware of the necessary procedures and pass along the feeling of well-being to the homeowner, which is of course misplaced. Many homes are listed above the current market value, closer to what is owed, and thus priced out of the market, while others are at a bargain basement price. Neither is going to facilitate a successful outcome. The first will languish on the market while the homeowner marches toward foreclosure, while the latter will procure an offer that will not be accepted by the bank. In the end, we will have unhappy sellers, unhappy buyers, and the foreclosure problem will still loom large on the horizon.
Comments(5)