Short Sales . . . do any of them ever close?

By
Real Estate Agent with The Bollum Team / California Oaks Real Estate

Most do not close with the first buyer who went into contract and some never close before the trustee's sale date.

And, most certainly aren't short!  That's right!  It used to be that there was nothing short about a short sale [asking the lender(s) to accept less than the amount owing on a home and allow the sale to go through.]  But, enough pain and some lenders are shortening the process. Now it can take only 6 months instead of 8!  Well, in some cases less.  It is a usually much better solution for all involved than going through foreclosure. [Note - you need to contact your CPA and Attorney for tax and legal advice and the consequences of a short sale or foreclosure.]

But, buyers beware - the "short" in short sale means the "lender is going to be asked to take it in the shorts"!  The list price may not be real, it may be unrealistically low to get the home into contract and you may not know for months how the lender feels about the list price.  If you are holding out for this home how many other great opportunities did you pass up waiting for this short sale to work it's way down the stack in the loan servicer's office.

Don't get me wrong, some short sales actually do close, but most not to the first buyer that went into contract.  Usually the first buyer has gotten tired of waiting and moved on.  When the bank comes back with it's response to the short sale the listing agent then knows how the bank feels about price "at that moment in time".  The next offer accepted by the seller will then be forwarded to the bank and in most cases the process starts all over again - another 2 months plus for a response.

The new HAFA program will make it simpler for those homes and sellers that qualify - but until it shakes out . . . find be an eager seller who does not have a short sale and close the sale!

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