Agent2Agent in California>Question Details

Mini Muzquiz,  in San Diego, CA

How are you guys doing with the Short Sales? Are you getting fast answers???

Asked by Mini Muzquiz, San Diego, CA Mon Jun 2, 2008

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There was a firm at our California Assoc. of Realtors "Legislative Day" "Showcase" which guaranteed 90% of offers accepted and response times of 2 days!! If you go to the web site look under "Showcase" and you'll find them as an exhibitor. Or head up tomorrow or if you've got your San Diego CAR director up there or President, have them grab you a flyer!!
In Sonoma County I ran sales numbers for May with 366 total sales of which 119 were REO and 31 Short-Sales. Last year in 2007 we had 395 Sales, 4 of which were REO and 1 Short-Sale!!! If we didn't have these "recycled" properties (I'm thinking 'green' these days!) we'd have NO market!! Of our 2670 "Active" listings, 397 Are REO, 586 Short-Sales. Our "Continue to Shows" is bloated with SS which never close!! Only 8.5% of all of our sales are Short-Sales.
1 vote Thank Flag Link Wed Jun 4, 2008
We are at the end of our first short sale transaction. (My business partner and myself) The initial responses were slow but we found that everything hinges on the appraisal. Until the bank has the home appraised, they have no compass by which to answer. Now that they have the appraisal, Countrywide has told us they will accept 82% of the appraised value - after all expenses. It will benefit you to have the title company prepare a HUD 1 to show the seller's side and the net proceeds (before payoff, of course). We had offers within 200.00 of their "magic number" and they rejected them. Good luck and if I can be of any further help, please don't hesitate to ask. Cathy Paxton, Associate Broker, Century 21 Rosendale Realty, MD
1 vote Thank Flag Link Tue Jun 3, 2008
By fast, do you mean anything less than 45 days?

At my little corner of the world, it still takes upwards of 45 days or longer to get a response. I like it when a short sale has already been approved by the lender. That is, the listing agent and the owners have already submitted all the necessary paperwork such as a hardship letter, seller's financial info, etc. so that all they are waiting for is an offer. That seems to expedite the process just a tiny bit.

Although my clients still want to look at short sales, I try to educate them on the process and how long it takes. Additionally, when I submit an offer, I make it clear to the listing agent that my buyers reserve the right to continue to look for another property.

When we do find something better, we withdraw our offer on the previousl properties as a courtesy to the listing agent and his seller. The listing agent conveys this message to the lender....but do you think it helps to expedite the process? No! So we keep looking.
1 vote Thank Flag Link Mon Jun 2, 2008
Yes and No. Countrywide is pretty good in giving us an approval. Wamu is also good. There are other banks that will not give an answer right away. Just keep your follow up and keep your buyers motivated so they can get the property.

Charita King
0 votes Thank Flag Link Sat Nov 8, 2008
I think that depends upon your definition of fast. We had an answer on our last short sale within about 3 1/2 weeks of the bank actually receiving the package though it was sent several times via fax before that before they actually were able to find it.
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0 votes Thank Flag Link Sat Nov 8, 2008
Biggest challenge I have is when listing broker does NOT know it is going to be a short sale. When I represent short sale sellers I focus on having the lender approve a preliminary draft HUD in advance of listing. Challenge there is the revolving door on the bank side. As for fast answers, I am seeing more of a "pause" as the lenders are waiting to see how the bailout will work to their benefit and if their loans will be bought. Bottom line is everything seems to be changing daily in this short sale/foreclosure/reo real estate world. Good luck and keep thinking out the box. None of this is easy. Emily Medvec
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0 votes Thank Flag Link Sat Nov 8, 2008
I had a property where the seller was a successor Trustee. There was a firs and second. We came up $15,000 shot on a $120,000 2nd. My client called the holder of the second, a credit union, explained to them he had a bankrupt estate with no money left, and asked them to forgive not only the $15,000 but $5,000 more of bills associated with the estate. The credit union verified the costs of the sale with escrow and overnighted the modified beneficary statement showing the "Short" amount!! That is a record no doubt! The credit union knew "WHAT" they were dealing with, a successor trustee with no money, no recourse and nothing to loose!
0 votes Thank Flag Link Sun Jun 8, 2008
I'm getting no awswers at all. I hope that time will heal this.
0 votes Thank Flag Link Sun Jun 8, 2008
The last short sale I did I just closed on 1 month ago. It was a new contraction home never live in. This one took me over 7 months and the bank took a short of 40,000. I have completed them much faster if the margins are closer. I have completed them in 2 week just waiting for closing but the bank only had to take a short of 10,000.
0 votes Thank Flag Link Thu Jun 5, 2008
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