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Banks Will Consider a Short Sale: Myth or Fact??

By
Real Estate Agent with Exit Realty Properties

  Everytime the media talks about the soaring foreclosures in America, I get glued to my TV set, waiting in anticipation for when they will finally admit that the banks are not as sympathetic as they continue to think. For every realtor who has had to deal with a bank in relation to a short sale, you just keep hearing about their tales of woes which is a constant battle. The Banks want their pound of flesh even when it is obvious that the pound is no longer there. In many cases, the buyers patience has been tested and they simply walk...forcing the home owners to not only lose the buyer, thus saving their credit history but then end up losing their home to foreclosure, a place they made every effort to stay away from in the first place. Afterall, there is no shortage of homes around.

When will these banks wake up and smell what is really going on? Would they rather go belly up than help people save their homes? Does the government have to beat them around the head before they wake up to this grim reality that many people just cannot afford the payments as they are structured?
What happened to the saying "half is better than none?"

Given the state of the union right now, Banks or Servicing Companies should shorten the timeframe for considering a short sale. In my estimation, every 10 homes now in the MLS database seems to be a short sale or a pre-foreclosure. Given this fact, the banks have to be better than flexible. They should be calling all clients to find out how they can help them re-structure their loans and not the other way around.

Buyers are so few and far between and when we as realtors get them, we try every trick in the book to keep hold of them. Please let's find a way to ensure that the banks don't let them slip away...

                                                            

Afie Makinde
Exit Realty Properties
www.makinhomes.com
484.410.6569

Terry Lynch
LAR Notary and Closing Services - Saint Clair Shores, MI

Most lenders are large bureaucracies that are slow to adapt to forces around them. I'm sure this crisis will be over and gone before they get it


Oct 08, 2007 03:09 PM
Mike Klijanowicz
Cummings & Co. Realtors - Perry Hall, MD
Associate Broker @ Cummings & Co. Realtors
Half is better than none means nothing when money is involved with banks!  I have found that banks are starting to negotiate more than they used to!  That being said, it is still not enough because there really is A LOT OF INVENTORY for buyer to choose from!
Oct 10, 2007 04:50 AM
Brian Piper
Jacob Dean Mortgage - Vienna, VA
BestVirginiaHomeLoans.com

MYTH.

I have seen 0 of 12 shortsales approved from LO's or Realtors I know in the last 6 months. I attended a sherriff's sale, and every home was auctioned to the lender. I fear we have not reached the bottom yet.

Oct 16, 2007 03:00 PM
Dan Tobias
Rodeo Realty - Northridge, CA
Northridge Real Estate Expert
my best friend who happens to be in my office has been having good luck with the banks these days. he has made 3 diffrent offersand all of them got accepted, than one of his clients decided he didn`t want the home for the price they agreed on, and pulled out of escrow. three weeks later he gets a call, and the bank is willing to take $20,000.00 less if his client is still interested. When the banks have to many bad loans the goverment can take them over, so this forces them to deal when they get to a certian point.
Oct 16, 2007 04:32 PM
Afie Makinde
Exit Realty Properties - Coral Springs, FL
Realtor, Broward County, FL
Wow, there is a green light showing up in the tunnel these days. That is good to know. Now, if only we could get the buyers to get off the sidelines and come and make a deal...
Oct 17, 2007 07:02 AM
Matthew Zgonc
Aksland Real Estate - Modesto, CA
Realtor, CFS, CVS
Especially at the end of the year, banks are looking to dump their inventory for tax break purposes. 
Oct 29, 2007 04:02 PM
Diane Rice
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC
Afie, you attitude on this is great.... now if we could get the banks to LISTEN!  This was great insight, and a solution if heeded.
Oct 31, 2007 01:39 PM
Anonymous
Anonymous
I agree Diane. I RAN INTO THIS SAME PROBLEM AGAIN THIS WEEK, again. We will be watching and ...waiting.
Oct 31, 2007 01:59 PM
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