Short sales are such a huge part of our market today, that I am frustrated, and even slightly surprised that they can not be made smoother to work with. For anybody who is not in real estate, a short sale is when there is not enough equity for the seller to pay back all of the existing loan, but seller will have to seek the lien holders approval of a "short". This is often a better alternative for both the bank and the seller than letting the house go on foreclosure.
I am guessing that a few of you fellow realtors out there are also a bit aggravated when you are trying to sell a home (either on the sellers side, or the buyers), and after successfully finding a match of a buyer and seller, the lien holder who is going to have to take a short, is not responsive, or not working with you in any effective manner. Sometimes you are not in a position to effectively seek communication with the bank anyway, since it often falls to be sellers side responsibility. To go even a step further, I do question the capabilities of some of the so called short sales specialists, who get assigned to help the sellers. How can we check their credibility?
I personally have had experiences, where I am certain that ultimately the bank will take a loss of $20,000.-$50,000. from what they could have worked out by having their systems in place to work with the excisting sale on the table. But instead, there is not response in many cases. Loss of that kind of money per house adds upp quickly, don't you think.
Buyers bail out after patiently waiting for a few months, and homes go to foreclosure instead of the banks getting their office organized enough to help us hardworking realtors to help our buyers/sellers and put the sale together. Can't somebody get these banks to organize a system that would ultimately help them out by netting them the most money possible. Government is bailing out the banks the best they can, but a little self help would go a long way. Makes me angry, how about you? To talk about the buyers and sellers who rely on us for help, and sometimes are angry at us as well.
Leaves us feeling powerless. And in some cases it is hard to make your clients understand that we are as frustrated as they are. There is not one magical way to make these things work, but often it seems to be like shooting in the dark. Some banks are great, no doubt, but more often than that, you really are on a tight rope.
I wonder if things are going to get more chaotic, or could the banks start learning from the fact that they have turned down some good sales before the foreclosure date, and make some changes on their procedures.
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