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The Apple Pie of Sacramento Short Sales is No Dessert

By
Real Estate Agent with Elizabeth Anne Weintraub, Broker DRE #00697006

Imagine you're having dinner at a restaurant. You've finished your meal and are awaiting for dessert when your cell phone rings. So, you excuse yourself from the table, grab your cell and head out to the parking lot to talk. When you come back to your table, everybody is gone, the table is cleared, and the waiter elbows you to ask: "Do you have a reservation?"

You wonder if this is the Twilight Zone. You say, "I just want to eat my apple pie." No, the waiter says you must call a special 800# and make a reservation. Then, they will want to confirm your credit card number before seating you at another table. They also cannot bring you a slice of apple pie unless you order an entire dinner. The waiter acts like you are a complete stranger. He's never seen you before.

If this really happened, you would never go back to this restaurant again. Yet, this happens almost every single week to this Sacramento short sale agent.

Doesn't matter whether it's a Chase short sale, Wells Fargo short sale or a Bank of America short sale. Most of the major lenders handle short sales in a similar manner. Once a buyer cancels, the short sale starts over. Oh, Bank of America says it will do a soft decline, but that doesn't help much if the BPO has expired. It certainly doesn't help if the negotiator hits the wrong key, which instead results in a hard decline.

You think that short sales can take a long time to close because you see for sale signs in the yard for months on end or 3-digit numbers for days on market, but that's not always the lender's fault. Much of the time it's because a buyer canceled. Maybe the buyer canceled because the buyer wanted attention for a while. Wanted people to fawn over him or her, but perhaps the person had no real intention of buying a home. In states outside of California that kind of behavior would be labeled as some type of mental deficiency or handicap but here in Sacramento it seems to be par for the course.

So, we resubmit the short sale and start the short sale process anew. We shake hands and introduce ourselves to the bank one more time. Here's our authorization to speak to you, even though you already had one in the file that you deleted. You know, this is nuts. A soft decline should result in a complete file transfer, leaving only the purchase offer slot empty. But no, this is short sale land, in which every day is a new opportunity to encounter fresh madness.

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Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

Comments(9)

Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Colorado Broker / Referral Services

The life and times of working the short sale!  Regardless, of the "streamlining" processes the lenders say they are incorporating, it does NOT matter.  They just do not make it happen like they promise.  But it sure sounds good when they talk about their streamlining process.

May 26, 2012 01:24 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I think I'm going to have to have applie pie now.  Dang it.  I am about to "start over" with one of mine.  Arg.

May 26, 2012 01:24 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

You are so right, Dan. And then you've got Bank of America that shortens that window for a soft decline and says it made that decision due to popular agent demand. Gag me. Do they think we're all morons? Yes, I think they do. But some of us are not and we see right through that marketing crap. And now that window has shrunk again to 5 days.

Hi Tammy: Have a glass of Moscato d'Asti with that piece of apple pie and it will make starting over on that short sale a little bit easier.

May 26, 2012 01:50 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I'm surprised I'm not seeing more Short Sales this year in Bristow & Gainesville.  I would think the expiration of the Mortgage Debt Forgiveness Act would have me buzzing with Short Sale Listings.  Oh well, guess I'll save up my energy for that "fresh madness."  I'm sure I've not seen the end of it.

May 26, 2012 07:30 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Elizabeth

Sometimes we get lucky. If the property goes back on the market and gets in contract within a week (as some Bank of America negotiators want) then we may not have to start all over again and change negotiators. But that's not always the case.

Just completed a short sale with Chase -- and I'm amazed at how quick and painless that was. Totally different from my previous encounters with them

May 26, 2012 04:47 PM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

I love the apple pie analogy Elizabeth, it has brought a new understanding of what short sale experts like yourself go through to complete a transaction.

May 26, 2012 06:23 PM
James Dray
Fathom Realty - Bentonville, AR

 

Morning Elizabeth sounds like that movie "Groundhog Day".  But it's not too far off given the scenario you just gave.

May 26, 2012 09:51 PM
Kimberley Kelly, SFR, HAFA, GREEN
HK Lane, Christie's International Affiliate, 760-285-3578 - La Quinta, CA
I do Real Estate like I played polo-to WIN!

I have gone round and round with B of A and their "Buyer Substitution".  Basically, they don't do it..except for that negotiator who occassionally is sane and controls their typing fingers. 

Even experienced List Agent for Short Sales many times cannot negotiatoe the quagmire of short sale bull**** that the Lenders have in place. 

You rock at Short Sales obviously and I enjoy your blogs..

May 26, 2012 11:28 PM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

I love the analogy, but what I would love a lot more is some apple pie (warm with ice cream).

May 27, 2012 08:24 AM