Are Short Sales a Thing of the past?

By
Real Estate Agent with Keller Williams Realty Sonoran Living

Are Short Sales a Thing of the past?

 

A wonderful family I have worked with for months will finally close on a short sale this week, but many wonder if short sales are a thing of the past.  We put our offer in on the property the end of October and we are just under 90 days to close.

Writing an offer on a short sale is not for the faint of heart. There are many unknowns, ie will the bank approve the short sale? Will the seller agree to any of the terms the bank may require approving the short sale? Will the house be in the same condition if a seller is selling due to a short sale, not necessarily because they want to move to a better home?

 

For my buyers, it was an opportunity to get the bigger home they wanted, in the neighborhood they wanted without changing their children's schools.  Yes, we sold their home and they moved into an apartment (2 adults, 2 children, 2 cats) for a few months, but their eye was on the prize!  

 

The house they are buying is a bit dated (can you say mauve carpets?) and in need of bathroom and flooring updates.  To the rescue..... a Fannie Mae Renovation loan.  This loan allows a buyer to buy a home, then complete preapproved renovations with the funds for the renovation added to the loan. While not for the faint of heart, this will allow my buyers to get the house THEY want with the updating THEY want.

 

This loan did require my sellers to get contractors to provide estimates for the updates they wanted for their new home to be sure these were qualified renovation items.  The appraisal had to identify the value of the home after the renovation was completed.  Both requirements were met and the desired renovations were factored into the purchase price and confirmed the appropriate value for the property.  This process also required a lender familiar with the Fannie Mae renovation program.

 

As Realtors we want our clients to get the best home at the best price.  The Fannie Renovation loan answered the question of how to afford the updates my buyers wanted, with the house in the desired location.  While it has been a long three months, with a bit more stress than my buyers would like, they see the light at the end of the tunnel.

At the end of the day, most of us would like a 30 - 45 day close to getting a paycheck. Short sales are a lot of work with no guarantees......but the knowledge my buyers will have the home of their dream makes fills me with much happiness!

 

Yes, there were challenges along the way, ie rate lock expirations, emotional seller leaving her dream home after the death of husband, unexpected 2nd loan coming to light, and an HOA assessment coming to light.  Yes, short sales can be a challenge, but when buyers are informed about the process and potential outcomes, this may be the answer for some buyers.  We see much fewer distressed properties in the Phoenix metro area today, but they are out there and may be just what your buyer needs!

 

 

 

 

Posted by

Shirley Coomer

Keller Williams Realty Sonoran Living

602.770.0643

15905 S 46th St, Ste 160

Phoenix, Az  85048

scooer@kw.com

searchingphoenixhomes-az.com

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Rainmaker
2,440,667
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Unfortunately, short sales are not a thing of the past. I'm about to list one. But fortunately, in my market, they are becoming less and less available.

Jan 18, 2017 06:07 AM #1
Rainmaker
1,190,202
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

About 8% of our current listings are short sales and an additional 14% are foreclosures, so we still have a fair amount of distressed properties in my area.

Jan 24, 2017 06:53 AM #2
Rainmaker
1,131,869
Jane Peters
Home Jane Realty - Los Angeles, CA
Connecting you to the L.A. real estate market

Oh yes, those short sales can be soul destroying and there are not too many people who want to go through the process. So the hardy can end up with a home they otherwise may never have been able to compete for. Congratulations on the successful completion.

Jan 25, 2017 12:30 PM #3
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Nice work on sticking this out with your clients. Short sales can be a nightmare. We aren't seeming many of them in my market. Thank goodness.

Jan 25, 2017 01:55 PM #4
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Shirley- I can remember when we moved back to FL in 2007 and the short sales were starting to increase here. It took a patient and experienced agent to handle these!

Feb 06, 2017 06:14 PM #5
Rainmaker
2,753,026
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Shirley in my market it is virtually non existent just as REO's are virtually a thing of the past.....Endre

Feb 08, 2017 06:24 PM #6
Rainmaker
815,594
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I've worked on over 200 pre-foreclosures since 2007 and I did one in 2015. They are not gone because people still suffer from unexpected financial blows or mismanage their money and are forced to sell. I'm helping a guy avoid a NOD right now.

Feb 17, 2017 10:10 PM #7
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

We never had many in my market and I only had one (listing side) last year.  And it closed in under 60 days.  I think there are less of them and that causes them to close sooner, but every now and again there is still one or two on the market

Feb 18, 2017 02:34 PM #8
Rainmaker
419,045
Bruce Hicks
Best Homes Hawaii - Honolulu, HI
Your Lifetime Friend/Helper!

We have done a few short sales.  Last one was about 2 years ago.  There are still some around but less. Shirley Coomer I think we will be seeing more SS in the next few years.  With the rates increasing and sales prices accelerating could be a recipe for upside down people.  Here the median price for 3/2 is now $755,000!

Mar 15, 2017 11:53 AM #9
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Shirley Coomer

Realtor, Keller Williams Realty, Phoenix Az
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