What to expect in a short sale? I suppose I could wear out my keyboard posting all that could happen and then still miss some.
I'm currently working with a buyer client buying his first home. We put in a successful bid on a condo and the process began. Let me interject that the listing agent has been very communicative and great to work with. Unfortunately I can't say the same for the lenders. Only one other condo has sold in that development since Jan. 1. That unit was also a short sale. It was a mirror image of the subject property except the recent sold had a fireplace. The contract price was slightly higher than the comp but I wasn't too concerned since the market here is on the increase in that price range. All seemed to be going well. One of the lenders accepted the contract as written. Lender number two just came back with a counter of 140K. That's 13K over the highest comparable. I don't know where this will end up but the listing agent and I put together some similar sales to send to the lender. Fortunately the seller is also taking an active role in trying to get this lender to come back to this planet. It's sad to me that people with no knowledge of the local market are making decisions that hurt their customers. It's one thing to try to negotiate to protect yourself but the numbers don't lie.
Don't get me wrong, I've certainly been involved in short sales where the negotiators did act in a reasonable manner but the industry is also filled with just as many horror stories. Frankly the trend I'm seeing is that fewer and fewer buyers want to even bother with looking at short sales. Lenders...STOP SHOOTING YOURSELVES IN THE FOOT!