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Will Short Sales Overtake Foreclosures?

By
Real Estate Agent with Remax Town & Country

I saw a recent webinar from Remax and RealtyTrac about the ratio of Foreclosures to Short Sales.

Currently about 3/2. Three foreclosures to Two Short Sales.

Will Short Sales overtake Foreclosures?

 I seriously doubt it. Here's why. I've had 3 Short Sales with firm well qualified buyers become Foreclosures because the Banks, 3 different ones, proceeding with the Foreclosure and refusing to wait for the Short Sale to be approved by the same Bank who is Foreclosing.

I believe the Banks prefer Foreclosure. They just assign the property to a management company and forget about it.

The Short Sales require a lot more effort and some Banks are trying to handle it in house. Most of them are a joke. Never consistent on what documents they want. No order they want them, never the same fax for all the documents. Most won't accept email documents. It takes 3 week for them to acknowledge receipt of the package.

Most of the sellers aren't cooperative either. After 2 weeks they lose interest and stop responding to requests for signatures and compiling documents.

I have the coveted CDPE  designation and have all the resources but without cooperation from Sellers and Banks and extremely patient Buyers and Buyers agents it would be less painful to walk on hot coals.

Just an opinion. I welcome yours.

Dale Falkowski Remax

Posted by

Dale Falkowski

Remax Town & Country
Woodstock, Ga.

WWW.agentdale.com
@dalefalk

https://www.facebook.com/pages/Woodstock-Real-Estate-Agent-Dale/264552486902997?ref=hl

Comments (5)

Susan Morrison
RE/MAX Executive Realty - Franklin, MA

Foreclosures are vacant properties and none of them are maintained properly.  I certainly hope that short sales are always in the lead to foreclosures.  The occupied short sale is much more desirable to market.

Aug 31, 2010 07:28 AM
Carla Dimond
CATARRA - Mountain View, CA
(Silicon Valley)

Dale, it seems that the number of short sales is trending upward here in Northern CA

Aug 31, 2010 07:33 AM
Rosalinda Morgan
Brookville, NY
"The Rose Lady"

Short sales are better than foreclosure because the owners stay in the house and maintain it.  It's easier to show.  However, short sale takes too much time and effort to get the deal done because the bank and the seller are quite impossible to work with. 

Sep 01, 2010 08:41 AM
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Dale I could see it becoming more balanced but it would take the lenders stepping up their response time even further.

Sep 10, 2010 01:01 AM
Dale Falkowski
Remax Town & Country - Woodstock, GA
The Honest Agent Full Time Pro

Have you heard of HR-6311?

a bill mandating a yes or no in 45 days.

Sep 24, 2010 03:19 AM