Avoiding Short Sales, Like The Plague

By
Real Estate Agent with Area Pro Realty

Why do most agents steer their clients away from these homes? Perhaps my story will shed some light to why we skip to show these properties. My last four transactions went like this

1. I submitted an offer for $390,000 on behalf of my client on a short sale. The bank wanted $410,000 so they turned it down. A month later, the home went into foreclosure. Four months after that the home sold for $310,000.

2. I received an offer on my short sale listing for $200,000. The bank said it was too low and ordered a broker's price opinion. It came back at $200,000. The bank did not approve the offer for months until buyers purchased another home. Finally, bank accepted an offer of $145,000 after a year.

3. I came close to losing my buyers after months of no response from the seller. My clients call me every week anticipating an acceptance or counter which never comes.  Because of this uncertainty my clients thought I am not doing anything to get their offer accepted. I can only tell them to be patient as they are looking for a deal. I compare this experience to throwing a coin in the fountain.

4. In a period of 11 months, 20 offers placed on a short sale home I am listing for $430,000. All 20 came & went and no acceptance. Not even one offer for back-up was available. On the twelvth month an offer came in at $340,000 and bank did not approve after 45 days. When approval came in, the buyers moved on. After that another offer came in at $330,000 so bank postponed the Trustee Sale for 45 days. Day 30 and the bank still do not have approval.

When will banks realize that they are losing qualified buyers and millions of dollars by delaying short sales? Until they do, I have to constantly calm my sellers' nerves from their fear of losing their home to foreclosure.

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