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You can't win them all...especially in the world of Short Sales

By
Real Estate Agent with Berkshire Hathaway HomeServices - Homesale Realty RS292802

You can't win them all... especially in the world of Short Sales

I wish that I could say that I close 100% of the short sales that I've worked. But hey, the highest paid baseball players get paid millions to get a hit 30% of the time. The highest paid Quarterbacks get paid millions to complete 70% of their throws.

There was one that I couldn't get done. Couldn't get the investor to bring down their net proceeds. This home was not in good condition. Garage needed to come down, metal roof was at its end of life with an active roof leak. Interior was in need of major rehabilitation with sellers that were no longer living in the home and both owners having lost their jobs. I had two offers in on the home both near the same price but well below the list price (the list price given by the negotiator). The original buyers walked because of the home inspection.

We can blame it on the BPO Agent but I'm not going to go there. If I am assigned a BPO, I always ask the listing agent if there are any underlying issues that I should be made aware of that could affect value?

I attempted to inform the negotiator that I knew this market very well and that their net proceeds were unrealistic. I pulled comps and sent them over, even offered to send them the home inspection highlighting the needed repairs that I am quite sure the BPO Agent wasn't aware of. The negotiator wasn't interested in seeing this information. I was flat out told that the investor was denying this short sale and did not want to see the comps that I used nor did they want to see the home inspection. The BPO came in at this price and the investor needs to net 85% of that price.

Needless to say I received a phone call about two weeks later that the home sold and was being re-listed as a REO/Foreclosure. Breaking the news to the previous home owners is never an easy thing.

The home is now on the market for $3,000 LESS than the two offers that I submitted to them as a short sale. I don't claim to be a mathematician but I am sure the bank could have saved $20,000 easily by agreeing to the short sale price instead of proceeding with the foreclosure.

As always, I take every experience that I go through as a potential learning experience. So what did I learn? When putting together your short sale package, send your CMA, have the buyers do their home inspection so that it can be given to both the bank and the BPO Agent. Sellers, if you are struggling because of job loss divorce, death, or decrease in income, reach out to a local agent this not only familiar with the Short Sale process but has a proven track record of success, and a system in place.

 

 
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Darius Ramsey
Prudential Homesale Services Group
717-884-9052
dramsey@HomesInCentralPA.com
Posted by

Darius Ramsey, CDPE
Realtor
Prudential Homesale Services Group
3435 Market St.
Camp Hill, PA 17011
(717) 761-7900 Office
(717) 884-8190 Cell
(800) 606-2501 Fax
www.HomesInCentralPA.com 

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Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

"... The highest paid Quarterbacks get paid millions to complete 70% of their throws."    That is profound, Darius.  What a great analogy to the Short Sale!

Oct 29, 2012 12:35 PM
Colleen Fischesser Northwest Property Shop
NextHome Experience - Chelan, WA
A Tradition of Trust in the Pacific NW since 1990!

Fortunately it's getting better than it used to be, but you're right. We can only do so much and the parties involved don't/won't see reason, it's frustrating. Sorry for your sellers who tried to go the ss route. Good luck on the next one!

 

Oct 29, 2012 12:42 PM
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg
Lol you didn't mention the name BofA but sounds like their MO all day! Stupid to see this but it happens ALL the time. Hang in there NO one gets them all, NO one!
Oct 29, 2012 12:44 PM
Darius Ramsey
Berkshire Hathaway HomeServices - Homesale Realty - Camp Hill, PA
REO/Short Sale Specialist

Colleen it is getting MUCH better than it used to be. As agents we are getting better with the amount of information available to us. 

David, it wasn't bank of america. I haven't had too many issues with them. Knocking on Wood. From my experience, Chase is BY FAR the best to work with.

Oct 29, 2012 12:53 PM