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A Short Sale Experience

By
Real Estate Agent with RE/MAX Harbor Realty

I'm sure the banks are very busy, but ignoring the Realtor can be a costly mistake.  Yes, I'm mad!  I listed a beautiful waterfront home in Punta Gorda Isles in Punta Gorda, Florida as a short sale.  The pool sparkled, the boating access supreme.  The owner has a hardship, and can't continue payments, and stands to loose his equity and his home.  Fortunately, offers quickly were received, sumitted, and the process began to request short sale approval. 

Sorry to say, that after a four-month long process of repeated phone calls, and the file being assigned and reassigned again and again within the lender's offices, the buyer decided not to wait any longer.  On several faxes and calls, I let them know that the buyer wasn't going to wait forever and that the house needs to be maintained.  When the buyer finally wrote the dreaded cancellation letter, and I called to convey the information to lender.  Then they let me know that the short sale had been approved; they just didn't bother to communicate it with anyone!  But it was too late and the buyer was entitled to exit the purchase agreement which had expired. 

While waiting for a response from the lender, the seller was unable to continue the care of the home.  What was once an attractive waterfront home now has a green pool and mold in the garage.  The appeal has significantly declined due to condition and the market.   Sorry to say, the lender will likely lose close to $100,000 on their delay fiasco. 

I undertstand that there are checks and balances and procedures that must be followed when approving a short sale.  However, when you publish a 60-day time frame and take twice as long, you create ill will. 

I'll go back to work to find another buyer - now at a lower price and with the disclosure that the lender may take four months to give an answer. 

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