As agents the only way we make money is how well we utilize our time. We are now learning that Short Sales require additional time to consummate often a lot of additional time.
As a seller the documentation and decision time line will seem endless. You will be frustrated that you can't move forward with your life. As a buyer, don't wait until the last minute and don't fall in love with one house.
I had a listing that I "sold" three times over a 12 month period. The first problem was a bank in second position wouldn't release the lien unless the seller came up with twenty thousand dollars. It fell through the second time because the buyer got tired of the delays and bailed. By the third offer the market had fallen even more and the value had decreased but the lender wouldn't come off their original number. The seller after more than two years is still in the home and is now going through the foreclosure process.
We have a buyer situation in which a short sale offer was made in July. We were just now informed by Wells Fargo that they are assigning it to a new negotiator, the third one. We have encouraged the buyer to explore other options but he really wants this home and is willing to wait them out.
This represents only two out of a multitude of short sales in which we have been involved both on the listing side and the buyer side. The point is that there are two rules when dealing with short sales. Rule number one is that there are no rules and rule number two is that sometimes rule number one doesn't apply. The only hard and fast requirement is patience, patience with your agent (believe me they are not having fun), patience with the process (it seems ridiculous and wasteful at times) and unfortunately, patience with the lender (they are so overwhelmed generally, they don't have a clue).
Even those of you who are not in trouble with your mortgage may have to face the reality of short selling if you have to move or relocate because the value of your home is may be less than what is owed. So it's 2011, hit the restart button and if you have to sell for what ever reason, check with an accountant and a knowledgable realtor or attorney. If you are a buyer, just fasten your seat belt and be prepared for an emotional roller coaster.
Comments(3)