Short sales...a short story, Fact vs. Myth
Being a real estate professional in this turbulent market since 1999, many changes have come and gone...but, if I had a dollar for every time I heard a client say, "well, the bank just wants to get rid of this property".....when they speak of short sales and bank owned properties (REO), I'd be a rich woman today! Let's explore facts vs. myths....in 2009 there were 258 short sale/REO properties...2010 showed 1,359, and in the 3 + months in 2011, we are already up to 498!!!! If we look at the 498 as being a quarter figure,and if the pace continues, we'll reach 2,490 distressed properties in 2011! The volume that must be reaching the banks for processing must be overwhelming from a clerical standpoint. Every buyer seems to be under the misconception that the bank is just poised and waiting for their offer to come in on the short sale or REO property that they are looking at. In reality, I keep picturing a clerk behind a desk with mounds of paperwork piling up every day, phones ringing off the hook and no end in sight.....So, think Mr. or Ms. Buyer, when you go out with your Realtor and put in an offer on a property that you are sure the bank wants to get rid of....ask yourself, do they really? They already have a very clear cut idea of value from the multiple BPO's that they've had done to gage the home value and market....they already know the number they need before you come into the picture. If a seller is involved with a short sale, the bank has to calculate whether they can take the loss or not....and the seller has to cooperate with the bank's disclosure demands....and the bank is only a servicer, then out from behind the curtain at the end of it all, comes the investor, who has the final say......short sales are the most precarious of all, but they can be done! Consult your local professional Realtor. Donna Godfrey, Associate Broker, RE/MAX Achievers, (610) 489-5900
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