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The Biggest Problem Facing Sacramento Short Sales Today

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

Short sales are fluid and constantly changing. What was true in a Sacramento short sale yesterday might not be true today. There are movements, though, that can be predicted. A movement I noted in January and everybody seemed to have pooh-poohed is the fact that short sales are slowing down. There are fewer short sales on the market because there are fewer short sales, period. Of course, this is the time that everybody and her uncles are gearing up to do short sales, courses in short sales are exploding on the real estate scene, banks are revamping how their borrowers are solicited for short sales and agents in droves are leaping aboard a short sale train that has pretty much left the station.

For the short sales that remain -- and yes, I still sell short sales even though my main focus today is in regular real estate because I changed direction last summer to meet the coming demand for traditional sales -- there is a risk factor for buyers that was not inherent over the past 8 years.

Read more in my professional blog on my business website about Today's Risk in a Sacramento Short Sale.

Happy 4th of July!!

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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 (8)

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

We have not had a short sale contract approved by a lender where they did NOT approve the sale with a higher price.

Of course, the bank and renogotiate the price.  They can do anything they wish. 

The buyer can also WALK. 

I recently got a short sale approval at a price $7,500 higher than the contract price, after waiting 8 weeks for the banks approval.

My buyer simply said "NO THANKS".

Well the listing agent about had a cow.  He gave up $5000 and the owner/seller gave $1500 and Lenn gave $1,000.

We closed. 

Jul 04, 2013 02:31 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

Holy cow, Lenn, good thing I don't have to have a cow in Sacramento because we have plenty of buyers here, more than we need. Buyers here need to have some flexibility. However, if they are at the max for a loan, they probably should not be buying a short sale.

As for walking over $7500, that's $48 extra a month at 4% interest. Forty-eight bucks! It would be rare to meet a buyer in Sacramento who would give up buying a home over that. Besides, the next home might cost $10,000 or $15,000 or even $20,000 more.

Jul 04, 2013 02:55 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Elizabeth: I've noticed a trend in lender shifts. Whereas I used to do loads and loads of B of A and WF, I now have way too many at Nationstar and Greentree. Have you noticed anything like this?

Jul 04, 2013 03:18 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

Hi Melissa: Yes, I have!! And it's so irritating because at first glance I think, yippee, we can do a cooperative short sale, but then, no, because the servicing was sold. Bank of America seems to be rapidly dumping servicing faster than usual. I don't know if they are selling off their above water loans, I imagine not.

On the bright side, though, when I see the loan is with Nationstar or Greentree, that tells me that the bank bought that loan BECAUSE it was underwater, because that's what they do. It means they want to short sale and expect it. I've had no trouble with Nationstar or Greentree (first mortgages) short sales.

Jul 04, 2013 03:27 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

The effectiveness of getting a short sale done is so dependent on the bank you are dealing with. True.

Jul 04, 2013 08:29 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Was recently called in to help a new agent's buyer set realistic expectations about the Short Sale he was pursuing.  It's not a lottery ticket where you have a chance to steal a house cheap.  If prices are going up, the bank isn't leaving a penny on the table.

Jul 04, 2013 11:41 AM
James Dray
Fathom Realty - Bentonville, AR

Morning Elizabeth just never could get into the short sale part of the trade.  I'll leave that one to you.  :)

Jul 04, 2013 07:16 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

  We were just about to say...and have been working in that direction that short sales were...."not so much"...when five more appeared....now because spouses are years behind in the "sell or refinance" order of the court.....and so is the equity.

Jul 05, 2013 09:29 PM