The other side of Jacksonville Florida short sales: When buyers get scared!

By
Real Estate Agent with All Real Estate Options

We're bombarded by the negativity of why buyers should steer away from short sales, and in some cases I would agree, here's just a couple:

  • Lien holder's take months to give approvals
  • The list price hasn't been approved and is totally unrealistic.

Of course there are more but that's not what this post is about. This post is about the buyers who get scared, panic and back out when the short sale has a green light( In one case the green light was given in a matter of just days).

I have 2 shorts sales where the sellers have done everything necessary to get this done. The lien holders (Taylor Bean and Whitaker and American Home Mortgage Servicing, formally known as Option One) have obviously have systems in place and get the job done. Within weeks T,B and W had a BPO ordered, come back and written short sale approval. Within days, yes days, AHMSI had a written short sale approval.

One home has had 3 contracts and the other has had 2 and in all 5 cases the buyers backed out, at no fault of the seller and lien holders. Talk about frustration. Here's been some reasons:

  • Buyer's interest rate went up causing their payments to increase by about $50 a month.
  • Buyer couldn't come up with the binder.
  • PMI company required 10% down, buyer only had 5%.
  • FEAR, the buyer listened to the media and was scared to proceed.
  • Buyer looked at only one house and wanted to see what else is out there.

All these are legitimate reasons, but all should be researched before you put a contract on a home. I totally get buyers are cautious and they should be! This is one of the biggest purchases of most people's lives so you should proceed with caution...I repeat.....BEFORE you put a contract on a home.

A written short sale approval in days or weeks is a rare and precious event, many buyers wait months for a home that never gets approve.

The moral of the story is:

  • Continue to be smart buyers and learn from the mistakes of the current homeowners.
  • Get pre-approved before you even begin to even look  at homes.
  • Know how much you need down and have it available.
  • Work with an agent who is knowledgable in short sales.
  • Don't buy the first house you see without seeing some others first.

The last thing I want buyers to remember is, there are people and families behind that short sale who needs to sell and this is a very emotionally time for them as well. Be considerate and don't put a contract on their home if you're not serious to follow through.

 

 

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Pam lists and sells homes in Jacksonville, Orange Park, Green Cove Springs, Fleming Island, Middleburg,Ponte Vedra, Atlantic Beach, Neptune Beach, Jacksonville Beach, Orangedale, Fruit Cove, Switzerland and St Johns County Florida.

Are you facing foreclosure? Call Pam at 904-910-3516 to discuss your options.

Pam Graham with All Real Estate Options handles Jacksonville Florida short sales, Orange Park Florida short sales, Fleming Island Florida Short sales, Middleburg Florida short sales, Green Cove Springs Florida short sales, St Johns County Florida short sales, Ponte Vedra Florida short sales, St Augustine short sales, Palm Valley short sales, Duval County Florida short sales and Clay County Florida short sales.

 

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Mortgage Assistance Relief Services Disclosure

ALL Real Estate Options is not associated with the government and our services have not been approved by the government or your Lender. If you stop paying your mortgage you could lose your home and damage your credit. Your Lender may not agree to the change of your loan and/or a Short Sale.With a Short Sale, there are no guarantees offered and we cannot provide legal advice. Seek legal advice.

Comments (2)

Tracy Miller
Canton, MS
S. S. Specialist

Pam, this is a great post!  You provided some excellent information here, and I hope future or potential homebuyers that may read this blog will take serious heed of your advice.  Also, I love the cartoon pic of you seated in the car.  What a cool picture.

Dec 07, 2008 12:36 PM
Pam Graham
All Real Estate Options - Jacksonville, FL
Jacksonville, Clay & St Johns Counties

Tracy-I do hope buyers don't take offense to it but learn from it. I didn't want to scare anyone with my real picture! :)

Dec 08, 2008 12:13 AM