SHORT SALE NEGOTIATIONS MADE EVEN MORE DIFFICULT....
Did you know that many lenders and servicers are often requiring that homeowners list their property with an online auction company after a short sale contract has been submitted? So, if your buyer has put the condition into his offer that the owner will no longer continue to show and receive back-up offers, you have an offer that is going nowhere.
This is just another reach by the banks and lenders to push the properties into their hands without the bother of waiting for a foreclosure and purchasing the home on the courthouse steps. All forces are now directly aligned against the home owner because the banks now realize that as the market is recovering and home prices are rising, it is to their advantage to own the properties and not be a party to a short sale.
What does this mean to buyers? It almost guarantees that if you are looking for a "bargain" or a "steal", it is not going to happen because when the property is offered at auction, unless your price is higher than auction price, you are not going to get the home. The short sale negotiation is made even more difficult because the bank could be the bidder who outbids you!
And while you are waiting, waiting, waiting for the approval that never comes, you are missing out on fairly priece homes that are truly for sale. And, while you are waiting, waiting, waiting, mortgage rates are inching up along with home prices. Be smart... If you really want to buy a home, go buy one and don't waste your time and effort on trying to procure one of these short sale headaches. This is just one way that short sale negotiations have been made even more difficult and as time goes on, I think short sales will no longer be in play at all.