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Peaceandpowe…, Real Estate Pro in Bell And Hurd, Paine...

Is it true that banks do not like short sales taking too long and may just foreclose?

Asked by Peaceandpowerparenting, Bell And Hurd, Painesville, OH Sat Sep 29, 2012

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Eric H Wong’s answer
Banks are the reason why short sales take so long. If banks didn't take so long to respond to requests and offers, short sales could actually move pretty quickly.

The problem is that banks often run the foreclosure process in parallel with the short sale process, and, with the bank, the left hand does not know what the right hand is doing, and it can be a race to the finish line.
0 votes Thank Flag Link Sat Sep 29, 2012
With the mortgage settlement agreement, lenders are encouraging short sales over foreclosure and are even offering cash incentives for struggling homeowners. As a result, more homeowners and lenders are agreeing to a short sale as opposed to foreclosure, which has contributed to the rise of short sale properties on the market.

To learn about why short sales are a good investment and why banks prefer them over foreclosure, you can check out an article I wrote on this entitled "Looking for Real Estate Deals? Consider Short Sales"

Simon Campbell - http://www.bankforeclosuressale.com
0 votes Thank Flag Link Mon Dec 24, 2012
In the 'Wild, Wild, West of Real Estate" called short sales there exists an illusion of rules but anything can and does happen. ANYTHING!

These complex, illogical, abusive, convoluted, opague transactions do not have a 'good faith' party on the opposite side of the table. Banks can and do whatever they want.

70 percent of the time, the buyer can no longer stand the abuse and bail out of the process. All that time is wasted! Very few buyers are good candidates for a short sales. Because of this predictable pattern of failure, a successful short sale will be the outcome of a rigorous pre-qualification process imposed by the home owner. The owner must insure a buyer will stay engaged and able to adapt to what will eventually happen dictated by the buyers bank AND the bank managing the short sale.

As others have stated...the banks are the CAUSE of these 'taking forever' short sale. Behind their curtain of secrecy, stuff happens that to the buyer and seller all that secret stuff appears as absolute craziness. But in the end...THE BANK ALWAYS MAKES MONEY!!!

If you have what it takes, shorties can be an option. 30% do succeed.
0 votes Thank Flag Link Mon Dec 24, 2012
Short Sales are a Specialty not every one likes to part take in or is familiar with. Should you have any other questions regarding this subject please feel free to contact me directly.

Endre Barath,Jr.
Prudential California Realty
Beverly Hills, CA
homes@endrebarath.com
310.486.1002 (m)
Web Reference: http://www.endrebarath.com
0 votes Thank Flag Link Mon Dec 24, 2012
It is true that a bank will eventually "give up" and decide to foreclose on a property if the listing agent is unsuccessful at getting a qualified buyer to write a legitimate offer on a property, yes. Please contact me with any questions. I have personally closed about 20 short sales.

Thank you,

Andrew G. Belcher
CA. Broker Lic. 01707173
468 N. Camden Dr.
Beverly Hills, CA. 90210
805-587-6577
805-620-3777 fax
0 votes Thank Flag Link Sat Sep 29, 2012
Not at All. Banks rather do short sale than foreclosure, plus, not all short sale takes long time.
By the way Peace and Power is a good combination.
0 votes Thank Flag Link Sat Sep 29, 2012
It's the banks' own darn fault if the short sale is taking too long.

Bottom line, the bank Does NOT want to foreclose, they prefer a short sale because they will Net More $$$$. UNLESS the short sale offer they're receiving is a total low ball, then they'll just deny it & if you're inching close to an auction date & there are no more offers being submitted by your agent to the bank then Yes they would just foreclose. So, make sure the offer is not a total unexplainable (to an appraiser giving reasons) low ball offer that makes no sense to the bank.

You've been asking so many questions related to What if this & What if that? Pertaining to short sales, I am a valuable resource & can answer each & every one of your questions VERY Thoroughly,,, Do you have a home that you're needing to short sell or are you contemplating buying a short sale home, I recall one of your earlier question, I thought it started out as "I'm selling short my home & .....?"

Shoot me an email directly if you would like to talk about this further. I don't look back on this same Trulia posting for answers after mine.

Emily S. Knell
EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Realty ONE Group
100% short sale success ratio
& I can Prove it
0 votes Thank Flag Link Sat Sep 29, 2012
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