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Do short sales actually close...stats...

By
Real Estate Agent with RE/MAX Platinum Medford 941000194

I recently co-presented a class on short sales at a WCR sponsored event.  My stats on short sales are:

one, didn't close in 1994 in CA,

Three, closed in  2001 to 2003 in oregon

Two, closed in 2007, one went to foreclosure

One in 2007, I got the private lender to pay the seller moving costs for the deed and the property in good condition.

In 2008 so far, one I lost to foreclosure, and I doubt I will wait around to fail again.

But, for the information I presented to the class ,I polled the 4 local title companies and these are the unoffical stats.

On 10% of the properties listed as a short sale close.

About 20 to 25% that actually make it to escrow close.

To me that all the of this information says....Don't make short sales a career plan, and don't promise you clients success.

 

Comments (13)

Lisa Friedman
Alliance Realtors - Bedminster, NJ
Central New Jersey Real Estate

Wow, those are very interesting numbers. Thank you for posting the information.

May 27, 2008 12:18 PM
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

Doesn't actually endure one to spend a lot of time  on those particular type of sales, does it?

May 27, 2008 12:29 PM
Krista L. Walker
RE/MAX Platinum Medford - Medford, OR
Oregon- Homes & Real Estate for Sale

John - No, it does not endear me to the process and I would have to endure too much

May 27, 2008 12:34 PM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Personally, I've never had problems getting my clients to closing on short sales.  However, if the bank didn't approve a short sale before the property was listed, I can see many of them being denied and not closing, so that's what is probably skewing the stats.  I tell sellers to get the permission first because there is no point in wasting time if they aren't going to allow it.

May 27, 2008 12:39 PM
Krista L. Walker
RE/MAX Platinum Medford - Medford, OR
Oregon- Homes & Real Estate for Sale

donna- wow- that is good news.  What are your closing stats?

May 27, 2008 12:42 PM
Michael Wayne Jackson
Coldwell Banker - Novato, CA
Broker - Seniors Real Estate Specialist Novato

Very interesting stats. Are these stats for all of California? Thanks for the info Krista.

May 27, 2008 12:46 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

I personally have had three short sale listings.  Two have gone to closing in under 60 days.  I have a third one that has gone to the negotator at the bank and we should make it to closing within 75 days.  I truely believe it is all in the prep work between the seller, the lender and the agent.  If you do the right things up front your chances of success are much higher.

May 27, 2008 01:19 PM
LaShawn Norden
Keller Williams Heritage Realty - Longwood, FL
REALTOR, (321) 377-0157, Your Real Estate Advocate in Central FL

Thanks for sharing. I sure wish the media would advertise the stats for these types of sales in the newspapers and on TV so that Buyers know what the true numbers are...maybe then, Buyers will start to buy homes that are really for sale and can be closed on within 30-45 days, not 3-6 months.

May 27, 2008 01:20 PM
Krista L. Walker
RE/MAX Platinum Medford - Medford, OR
Oregon- Homes & Real Estate for Sale

Mike - except for one, these are jackson County, oregon stats.

Cindy - good job, but I find unless it is a local lender, the timing does not work so well.  Also that is what the majority of all the agents in my area say too.

LaShawn - Yes, as we all know all to well, the many things we would like the medai to print.

May 27, 2008 02:20 PM
Karen Cooper
Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL
Helping Homeowners w/Home Loans in 27 US States

Krista - So, I should keep recommending you as the short sale person to go to for our area? :->

May 29, 2008 02:20 AM
Krista L. Walker
RE/MAX Platinum Medford - Medford, OR
Oregon- Homes & Real Estate for Sale

Karen- thanks for asking whether you should refer people to me.  This is a tough question as I probably have a decent track record, but it is frustrating process for everyone.

May 29, 2008 02:47 AM
Karen Cooper
Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL
Helping Homeowners w/Home Loans in 27 US States

Krista - Well, I know that your clients are in good hands, and that you are not afraid of facing tough transactions. Might boil down to best practices in time management...like do I spend time blogging, or do I sign up for Zillow mortgage leads - both probably result in the same number of closings when all is said and done, but I derive a much greater sense of satisfaction from blogging!

May 31, 2008 06:26 AM
Annette Thompson
Texas Real Estate Services - Bryan, TX
College Station Real Estate

Krista, thanks for these stats. I've been intending to learn more about short sales but now that I know these stats, it's not going to be as high a priority for me.

May 31, 2008 04:36 PM