Short Sales are not cookie cutter deals

By
Services for Real Estate Pros with Great American Title Agency

I have recently been asked by several agents about short sales and the process they need to go through to close the deal. Although I push start each one of them on the same road, that road has many exits and turnpikes, so in the end they will hopefully get to the same location (a closed deal). How they handle each exit and turnpike will determine their level of success with multiple short sale clients.

Hopefully each agent that has considered short sales as the new and popular venue for getting deals will understand that like all transactions each one is not going to be the same. Let's think about that for just a moment. Residential resale transactions have many similarities: there is always some kind of contract and usually an inspection period, a BINSR, a response to the BINSR, a decision and so forth. So the process remains the same but after each exit on the "contract road" there are new road hazards to deal with.

Short sales are the same. They will start the somewhat different but will have many similarities. Keep in mind no matter how many you close they will never be a "cookie cutter" deal. When working a short sale there are really only additional steps involved and another family member (mortgage company) to add to the dinner table. Although they were not planned for they can be accommodated.   

In the end only you; whether an agent, title company, loan officer or whatever other real-estate professional you are, can make the decision to work with short sale clients. Be patient and professional, or use my motto and "kill them with kindness." I'm sure you have all heard that before so I make no claims to it being my own; only that it has worked for me over the years.

Comments (5)

Rob Jones
JG Realty,llc - Phoenix, AZ
Real Estate Broker - Greater Phoenix

Hey Karen!

 I hope all is going well...I haven't talked with you in a while.  We have been doing several short sales since November of 2006 and have had relative success.  Recently, it seems things have been getting more difficult with selling as well as making offers.  I'm sure lenders are not happy having to drop their notes below what they are owed... so often. Their are more than 3000 properties in ARMLS that are either lender owned or lender approval...and it seems to be going up.

This is going to be a way of business for a little while... 

Sep 18, 2007 10:01 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F
I am curious how much of a discount you are able to get off of retail on short sales?  20%, 30%, more.
Sep 18, 2007 12:34 PM
Karen Hubbard
Great American Title Agency - Gilbert, AZ
Escrow Officer

Rob- Unfortunately there is not a percentage that the lenders are using that I am aware of. I can tell you what I have seen and it is about 10% but that is only on the ones I have closed. A collegue of mine has seen 30%, so it is hard to say. Also I would think the percentage the lender is willing to take will be a direct correlation with where the market is in your particular area. Keep in mind the mortgage companies are going to look at each short sale on an individual basis and make their decision based on the information provided. Sorry I don't have a direct answer for you but I don't believe there is one. Perhaps someone in the mortgage industry can shed some more light on this?

Sep 19, 2007 05:00 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F
It seems like most of the short sales deals that I can get approved are basically for retail customers.  People looking to buy and live in it.  Alot of the investor customers I have cannot get the short sale approved because they need a much better discount of 30-40% under retail in order to make the deal happen. 
Sep 19, 2007 08:44 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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