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Is it Time to throw the SHORT SALE in the TOILET

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

Have you seen homes on the market for 6 months, a year how about 2 years? Chances are they may be listed as short sales.  Here in the Manchester NH area we have seen a sharp decline in Short Sales. Recently when a friend contacted me about a neighbor who had their home listed off and on for 2 years was at wits end. I went to meet with the home owner. I brought the old MLS sheets, printed the tax card and a stack of comps from within a 1 mile radius. The answer was simple but was a BOMB SHELL to the Home Owner when I told her that her she should not be trying to sell by a Short Sale. Her house was actually worth way more than the asking price and she should actually end up with a profit after sale. Chins dropped to the floor, tears flowed and then came the scream "WHY am i trying to sell through a short sale then?" That was indeed the question....  

 

 

I could not explain why a flurry of agents stirred her to a short sale. With values rising many Home Owners once again have a home that is worth more they owe. There are however some who still may be considered "Under water." where they owe more than their home is worth. A Short Sale may be the help they need to sell. A Short Sale is simply a tool that Home owners who owe more than their houses are worth, can use to sell their homes at today's market value despite what they owe.

 

I have a stark WARNING though to anyone who is looking to Buy or Sell a Home through a Short Sale. Not all Real Estate Agents are experienced in them. You may only get ONE chance to make it work so you can not afford to hire an agent who is not well experienced with Short Sales. It does not matter how big they are, what their name is or if they work for the only company in town, a small company or a big national company/. Experience comes from doing, not from buying online classes that add letters to the end of your name calling you a self proclaimed expert. 

 

Yes they are harsh words but Short Sales are a harsh experience if not done right.

 

First thing is no matter what anyone states, there is NO such thing as a PRE-APPROVED SHORT SALE. A short Sale has many parts that ALL must be approved, if even only one item is not approved, the short sale  could be denied.  

 

1. The Seller must be approved to even complete a Short Sale.

2. The Seller should be 100% willing to assist in the short sale process.

3. A price must be approved by the seller's bank. (Usually a price at or near the current market value less any needed repair's.)

4. All liens such as property tax, HOA liens, IRS liens, 2nd or even 3rd mortgages must have approval to be paid at closing and receive a full release in order to close.

5. Must find a buyer willing to pay what the Seller's bank is willing to sell it for.

6. Buyer must be willing to pay for inspections and release contingencies prior to getting approval.

7. The buyer must be willing to wait, have their mortgage already approved pending the seller's banks approval and be ready to close within 30 days of the seller's banks approval. 

8. if the Seller's bank is not willing to give a full release of the shorted amount, the Seller must be willing to accept paying a discounted amount, the full amount or sign a promissory note to pay that amount.

 

In Conclusion:  I leave you with my philosophy which is to provide more personal and professional service to guide my clients through each step of the buying or selling process. The key to having a successful purchase or sale can increase simply choosing a better agent. The secret is that All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. I leave you with now infamous philosophy, which is simple, to provide more personal and professional service to guide my clients through each step of the buying or selling process.

 

 

 

It does not take magic to turn your "For Sale" sign into a "Sold" sign. it takes a full time Local Agent who specializes in Listing homes like yours.


If you are thinking of buying a Home please contact us. Get a free pre-qualification along with some of the BEST CUSTOMER SERVICE through each step of the Buying Prices.

 

 

WE STRIVE TO PROVIDE THE BEST POSSIBLE SERVICE THROUGHOUT EACH STEP OF THE LISTING AND SELLING PROCESS!!!

 

If you need to sell your home and you owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale which may be able to help you.

Please try and avoid out of state or out of town agents and companies that make "out of this world promises". We are local agents with experience who never charge any up front fees.

 

 

 

We are local agents with experience who GET RESULTS!!!

 

We stand by you through every step in selling your home.

 

Another reason that makes New Hampshire a great place to Live, Work and Play.

 

About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. With 28 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area. To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com . We are Full Time Agents ready to serve all of your Real Estate needs through each step of the buying and Selling process. We are proud to be locally owned and operated.

Comments(58)

Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

Scott, short sales weren't part of the landscape for many agents prior to 2007-08. So those that have experience more than likely learned by doing. I've helped buyers where agents are doing their first listing side short sale. And it's gone smoothly. An agent with attention to detail and paperwork, outstanding communication skills and follow through can do an outstanding job. I've also been in contract with 'short sale experts' that made a mess of things.  A lot of times these 'experienced' agents work outside of their geographic areas. No matter how good they are at short sale, they can make a mess of things if they don't know the local market as in the scenario you described above. 

Mar 07, 2014 01:27 AM
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

I don't see as many short sales as before and their prices are higher.

Mar 07, 2014 02:03 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

What is really important to know is that some Short Sale agents steer these discounted homes to friends and associates.  

Mar 07, 2014 02:47 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I just read that there are still 4 million underwater homes in the U.S. - so the dreaded short sales will be around for a while yet. It all depends on location and how fast prices are rising.

Mar 07, 2014 03:00 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You hit the nail on the head.  Interviewing the listing agent  as a buyers agent when pursuing a short sale will tell you if an agent is experienced in short sales or not.  I'm amazed at some of the answers!

Mar 07, 2014 03:22 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I'm still confused though Scott. Is the house worth more? Then why didn't it sell? Lack of staging? Either way I bet this was an absolute shock to the sellers but better double check the mortgage balance!

 

Mar 07, 2014 03:42 AM
Gordon Wood
Canyon Ridge Realty LLC - Scottsdale, AZ
480.226.2842

Scott

Do you think we could see round 2?

Mar 07, 2014 05:09 AM
Sharon Sanchez
Ace Home Realty - Carson, CA
Your Number "1" Source For Real Estate.

Scott great post, but sad story.  It may not have been inexperience.  Maybe the agent was trying to help someone else get a good deal.  Whatever the case that agent is not a very good one.

Mar 07, 2014 06:07 AM
Paddy Deighan MBA JD PhD
http://www.medicalandspaconsulting.com - Vail, CO
Paddy Deighan J.D. Ph.D

as much as 40% of American homes currently have negative equity...once they get to a point of equity, the re-fi bbom will appear again and the whole mess can start over again

Mar 07, 2014 07:39 AM
Jim Miner
Miner Noh & Associates - Phoenix, AZ
Loan Modfication & Short Sale Specialist

Good outline, now with the complete set of new rules that went into affect 1-14-14 I wish the "my cousin will do the short-sale" person the best because the odds are very high they will get to see the inside of a court room.

Mar 07, 2014 08:22 AM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

Sounds like property values are going up in your area. This is good. Short sales are a pain and certainly take persistence.

Mar 07, 2014 08:47 AM
Dana Basiliere
Rossi & Riina Real Estate - Williston, VT
Making deals "Happen"

Scott,

It has been my personal experience that the time to throw the short sale in the toilet is when it is handed to you. I wouldn't hold on to one any longer than I would a hot potato. 

Mar 07, 2014 08:58 AM
M.C. Dwyer
Melody Russell Team at eXp Realty of California, Inc. - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

Well done Scott - a great featured blog and a happy seller!

Mar 07, 2014 09:04 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

GREAT for your Seller!! My last two Short Sales have been nightmares - 6 & 12 months!

Mar 07, 2014 12:36 PM
Jennifer Green
Keller Williams Realty Phoenix - Gilbert, AZ

I was shocked when I read this.  What are those agents thinking. My market has gone from an 80% short sale rate to an 8%.  I am hope not to see this market again for a long time.  Short sales are a nightmare for all involved. 

Mar 07, 2014 03:14 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

About 90% of my business is still short sales. I LOVE them!! Short sales match my skill set perfectly.

It is so important that sellers take the time to make sure their agent is experienced. Ask to see short sale closing confirmations.

An agents that are not experienced need to refer out or team up. Harming the public should never be an option.

Mar 07, 2014 05:08 PM
Laura Andersen
Keller Williams Realty Partners ~ 678.462.1191 agentandersen@gmail.com - Woodstock, GA
A HomeSOLD Name (678)462-1191 Woodstock, Georgia

The good news is that in this area short sales are now becoming more infrequent.  The Atlanta area has had a drop in unemployment seven months in a row. 

 

Mar 07, 2014 09:26 PM
Jordan Gouger
Keller Williams Realty Inc. - Austin, TX
Helping you to achieve your housing goals!

Great blog Scott! That is shocking that an agent would keep insisting on a short sale when the homeowner is above water. 

I agree about short sales being handeled by people that know how to do them correctly. Another thing to add is to make sure that the homeowner has throughly explored all of their options before initiating the short sale. 

Mar 08, 2014 10:13 AM
John Dotson
Preferred Properties of Highlands, Inc. - Highlands, NC - Highlands, NC
The experience to get you to the other side!

Shorts are becoming increasingly rare in our market.  In fact one firm that specialized in shorts just went out of business.

Mar 09, 2014 12:56 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

We have many standard sales but still have short sales in our MLS. Many banks work with agents through the Equator system and this makes a good working relationship and helps the homeowner get their home sold that is underwater. I have been doing shortsales for a long time but many times it depends on the initial intake officer. I have one right now who still has my 3rd party authorization pending in Legal for over 3 weeks. Normally it only takes 2 full days so not always the agents fault. I agree though that clients should get experiencesd agents vs agents with designations without experience. One thing, the bank usually will not filed the NOD if the house is in escrow with an offer. I find short sales rewarding and sounds like you do too.

Mar 20, 2014 09:11 AM