Thru-out my 21+ yrs career in Real Estate....I was thrilled to generate 10...maybe 13....maybe 15 pending contracts ..for they were like insurance to me. Money in the bank ! , Currently I have aprox. 9 or 10 contracts pending and all of them are "distressed properties". Well, most of you know that can be an unrealistic vision. Just because you have them negotiated, signed and submitted.......doesnt mean squat anymore. What do I mean?,,,,,,for those of you not familiar..let me list just a few things what can happen......
- Seller's lender doesnt have to approve the contract.
- Buyer can withdraw basically at any time of the transaction
- communication between lender departments have no clue of whats going on
- Seperated or divorced spouses trying to sell..get caught up with anger / emotional stress/ confusion
- Some attorneys discourage "short sale" and encourage "foreclosure defense".
- many Distressed sellers figure a way to rent out their property and decide there is no hurry.
- lender could suggest "Cooperative Short Sale"......that becomes "counter productive".
- "BPO" agent can come in and screw it up in a NY minute ! There goes the transaction./. down the drain!
Many other experiences can happen....above were just the top of my mind....The foresclosed properties appear to consumate in a more expedited fashion compared to the "short sale" process. But, have you ever seen the "HomePath" process for submitting a sales contract. Lot's of forms !
So, what do I recommend?
- Seller's need to be pre-qualified for a "short sale".....No surprises later on.
- Have all documents prepared for submission
- Seller needs to be educated of what process is all about
- Not all buyers are good candidates to purchase short sales.
- Buyer needs to understand the process and have flexibility with time-frame
- Buyers need to understand "pricing strategies" are different for Foreclosed as opposed to Short Sales.
- Most distressed properties are priced according to market trend.
- Low Balling doesnt always work.
- Seller does not have to be in default for a short sale
- Seller can be "current" and still qualify for short sale.
- Seller needs to understand the role "PMI" plays in the process
- Lender can approve..yet "PMI" can reject the sale.....check into that status in beginning.
- keep property in decent condition...the better it looks the better the price and quicker close.
- buyer should get inspections out of way early in process, so they dont discover major defaults later on.
There is obviously much more to discuss........if you can add to this, please i encourage it.
Times have changed.....Not like it used to be....but, some of us , just can't get the passion out of our system.
I have a National Referral Network ...primarily Short Sale Referrals...with some proven strategies. if interested contact me...anywhere...in the USA is ok. Best success to all....