Short Sale Nightmare

By
Real Estate Agent with Keller Williams Realty Chesterfield

Screaming womanI listed a property back in February and was able to secure a contract. (My first short sale by the way.) The property's value is not what the owner paid for it, thus a short sale. The lien holder required me to use an online site, Equator.com, to place the information in their system. Now here's where the nightmare begins.

 The information has been in their system for over three weeks. I have emailed and called Equator.com several times to get an answer as to whether or not this short sale offer is acceptable and that the buyer may move forward. First thing that is wrong is the contact number for the negotiator. The number in the system goes directly to voicemail and gets stuck in a continuous loop so you are unable to speak to a live person or to leave a message. Second, when you use the message system in Equator.com for the negotiator to contact you, there is no response. Third if you send the negotiator an email there is no response. Finally today after calling almost everyday this week a customer service representative gets me to the right voicemail where I am able to leave a message. But, it may be too little too late. The buyer is concerned about loosing out on the tax break and may cancel the contract if I don't get back with them today with a positive answer.

You work really hard to put a deal together and it is very unprofessional for lien holders to ignore your attempts to make contact so as to hold the deal together.

I've been told that short sales can be difficult but really, returning a phone call or email in a timely manner can go along way in making for a smoother transaction.

Is there anyone else out there with an opinion about how to make short sales work? I would love to hear from you.

Posted by

Your Realtor,

Victoria A. Small

Remember Small is the name...not the SERVICE!

Direct: (314) 766-1340

Office: (314) 353-8888

Website: www.VSmall.BuyRealEstateStLouis.com

E-mail: vsmall@BuyRealEstateStLouis.com

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Topic:
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Tags:
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short sale

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Rainer
39,248
John Ryan
Century 21 Alliance - Havertown, PA

This is not the first blog I read about Equator, I would search this on Active Rain.  Generally I stay away from short sales like the plague.

 

Mar 26, 2010 06:28 AM #1
Rainmaker
55,493
Kristin Mason
New Market Title Agency - Independence, OH

Victoria,

 

Banks in some cases can take up to 6 months to call you back or give you a response to an offer.....Here is an article that was in the Washington post last week with some new regulations.....It won't help your clients.  If they qare trying to get the tax credit a short sale probably isn't the way to go for them!

 

Saturday, March 13, 2010

 

http://www.washingtonpost.com/wp-dyn/content/article/2010/03/11/AR2010031104518.html - Article

 

Washington Post

 

The new short-sale rules

 

 

What sellers can expect from participating lenders starting in April:

 

This Story

Short sales to the rescue?

 

 

The new short-sale rules

-- Sellers must be unqualified for a loan modification under the Home Affordable Mortgage Program or be unable to afford the modification.

 

-- The bank will set an acceptable value of the home upfront, based on an appraisal or broker's price opinion.

 

-- Lenders must approve or deny a purchase offer within 10 days of it being submitted.

 

-- Once the bank approves a home for short sale, sellers may stop paying all related mortgage payments, and unpaid mortgage debt will be forgiven.

 

-- These mortgage payments will not be shown as late on credit reports.

 

-- At closing, sellers are entitled to as much as $1,500 from the government to cover relocation expenses.

Mar 26, 2010 06:28 AM #2
Rainer
70,432
David North
Coldwell Banker Bain - Duvall, WA
for a rewarding real estate experience

Victoria, much depends upon the particular lien holder.  Some of them are nightmares and some are reasonably good to work with.  Continue to be a pest, and ask around to find others who have dealt with short sales with the same lien holder.  They may have valuable tips for you.  In general, though, it sounds like you are involved in a fairly typical short sale, and the buyer can't count on closing, or even getting an answer, in time for the tax credit.

I wish you well, and hope you get a good break on this one.  I know the frustration.

Mar 26, 2010 06:35 AM #3
Rainer
104,986
Craig Richardson
National Realty - McLean, VA

Victoria, I feel your pain.  I'm done with short sales.  It's only traditional or bank-owned for me going forward.

Mar 26, 2010 06:36 AM #4
Rainer
33,892
Victoria Small
Keller Williams Realty Chesterfield - Saint Louis, MO
Remember Small is the name...not the SERVICE!

Kristin,

Thanks for the article. You are right, it may not help me with this deal but it will be nice when this is in place so that future short sales can go more smoothly.

Mar 26, 2010 06:53 AM #5
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Rainer
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Victoria Small

Remember Small is the name...not the SERVICE!
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