Foreclosure in Silver Lake>Question Details

Squid, Home Buyer in Los Angeles, CA

I read that only 40% of short sales close. So what happens to the other 60%?

Asked by Squid, Los Angeles, CA Tue Jun 30, 2009

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If 40% close ,then the remaining would go R.E.O. (bank owned )or the owner re-instated the loan ,the bank have worked out a loan modification !
1 vote Thank Flag Link Sun Mar 23, 2014
Perhaps the answer was missed since it was several answers ago. As stated multiple times herein, the short sales that do not close mostly result in competed foreclosures.
1 vote Thank Flag Link Sun Jun 24, 2012
If you're thinking about selling your house in a short sale, I recommend using a short sale negotiator. Often Realtors will cover this and split the cost between agents, so it's no cost to you. It really does expedite the process. The negotiator will also guide you - the seller - through the entire process and can explain possible outcomes.

Best,
Annie
http://www.annieritz.com
0 votes Thank Flag Link Tue Aug 6, 2013
Each situation is considerably different and sometimes banks have certain tendencies too. Often, homeowners will eventually enf up wih a modification and the short sale with terminate essentially.
0 votes Thank Flag Link Mon Aug 5, 2013
They get a loan modification and stay in the house.
0 votes Thank Flag Link Mon Aug 5, 2013
The number should be higher than that ,from what I have seen personally we have closed over 85% of them.Most of the challenges come up when the seller waits until the notice of sale has been filed,which means 21 days from the bank foreclosing on the house . Good luck !
0 votes Thank Flag Link Mon Aug 5, 2013
Apparently . . . they don't close.

Next question . . .
0 votes Thank Flag Link Sun Jun 24, 2012
The success rate of short sales can vary greatly from one area to another, but there is no question that success rates have improved significantly. In my areas, the success rate seems to be around 50% or more. This is a big improvement over the 15 to 20% rate of a few years ago.
0 votes Thank Flag Link Wed May 2, 2012
I'm actually attending a short sale seminar next week on July 15th in Van Nuys, by Property Masters Realty... I believe its at the Holiday Inn Exrpress.. They had a commercial on TV saying that they've dealt like with a few hundred lenders to help prevent ppl from going through foreclosure and stuff like that. I figure I'd give them a try since they're a legitimate company AND b/c the seminar is free. All you have to do is make a reservation. There's no harm in that. Haha. Anyways, I believe their website is http://www.propertymastersrealty.com . And the phone number I called was 1-800-459-0991. Hope it helps you solve your problems too!
0 votes Thank Flag Link Fri Jul 10, 2009
One overlooked reason that a portion of short sales do not close is that when there is a second lien holder they will not agree to the short sale price, even though the first lien holder agreed.
0 votes Thank Flag Link Wed Jul 8, 2009
Many of the unclosed short sales will go eventually to foreclosure.
Some the owner will try to modify the loan, but loan modification its just a temorrary solution to the real problem.
So foreclosure is the answer.
Web Reference: http://homesinsale.com
0 votes Thank Flag Link Tue Jul 7, 2009
I just wanted to add that the amount of foreclosures coming on the market will decrease. The lenders have placed a memoratorium on foreclosures because it is costing them an extra $50,000 or more to hire the trustee and then foreclose. The lenders will be working harder than ever to negotiate successful short sales in order to avoid the cost and an added liability on their books.

Best of luck!
Tara

Tara Steinke
Covering all of San Diego
Residential Sales and Appraisal
619-384-6014
SDRealtor.Tara@gmail.com
0 votes Thank Flag Link Wed Jul 1, 2009
They will foreclosuse, go in to auction, reo's, etc
0 votes Thank Flag Link Wed Jul 1, 2009
I notice here in LA that often the short sales are better properties -- cleaner, in move in condition, etc. For example, I looked at a short sale the other day and it was turn-key. It is hard for me to imagine that property as an REO because the REO's I've seen are usually fixers.
0 votes Thank Flag Link Wed Jul 1, 2009
Let's says 60% of shortsales don't close those become foreclosed property, if no one buys them at the trustee sale then they become bank owned property.
0 votes Thank Flag Link Wed Jul 1, 2009
Some great answers already received. I am just surprised that you are reading 40% are closing. I have read 20% close. The rest either end up in foreclosure, loan modification, bankruptcy, etc.

And then there is the current limbo, created by government intervention PLUS overload at the lenders, where the person has not made their payments and the bank has not filed for foreclosure. I know of several home squatters who have not made their payments in over a year, the bank has not filed a Notice of Default, and they are just staying in the house and hoping they "slip through the cracks" a while longer until the "market turns" and they can refinance or get a loan modification. Someone who is living rent free has little motivation to complete a short sale. And, some who do then have to be evicted so the new homeowner can take possession of their home.

So, if you are looking to purchase a short sale, make sure that the listing agent knows what they are doing, the seller has a real hardship, AND they are motivated to sell and move (or already have moved). I have closed 100% of my short sale listings to date and never had a problem with the seller moving out at close of escrow. Additionally, when representing buyers, I have worked with listing agents to assist in getting their short sales closed. When purchasing a short sale, if negotiated correctly, you are getting the best of both worlds - foreclosure pricing on a home that is occupied by the owner who will give full disclosures, water the yard and not totally trash the property in anger (although there might be deferred maintenance due to the fact that the owner is broke). Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com
0 votes Thank Flag Link Wed Jul 1, 2009
I feel that a lot of short sales do not close because there are inexperienced agents bepgtiating them. I have closed 98% of all my short sales....of course I am selective on the ones that I accept. If the hardship and finance situation makes sense, it should close.
0 votes Thank Flag Link Wed Jul 1, 2009
Cindi Hagley…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Foreclosure for the most part and more and more are winding up as Lender sales.
0 votes Thank Flag Link Wed Jul 1, 2009
foreclose, loan mod, reinstatement, bankruptcy, forebearance, deed-in-lieu of foreclosure, frivilous lawsuit by unscrupulous lawyer against the lender I seen alot of different things happen

see link below for more info on how short sales work
0 votes Thank Flag Link Wed Jul 1, 2009
Yes, foreclosure is a large reason for that, but also a lot of buyers back out due to long periods of waiting for a response from the bank.
0 votes Thank Flag Link Tue Jun 30, 2009
foreclosed by lien holder banks
0 votes Thank Flag Link Tue Jun 30, 2009
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