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Dale Falkows…, Real Estate Pro in Kennesaw, GA

Are buyers patient enough to offer on a Short Sale?

Asked by Dale Falkowski, Kennesaw, GA Mon Nov 29, 2010

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"Lack of communication between agents seems to be the challenge with an offer that my client has in now on a short sale. Can't get the guy on the phone and he will not respond to email. My client is about to walk, not because of frustration with the process, but with the lack of engagement from the other agent."

Agreed, lack of communication is the problem. I find that the reason for this lack of communication is typically from listing agents that are not involved in the process. These listing agents are perfectly comfortable with turning the deal over to a "short sale" attorney.. and will wait for a response.

As I have learned said attorney’s office (usually the paralegal) make a weekly phone call and then put the file on the pile and call again next week.. Hence the 6 - 9 months. If you take the bull by the horns and have yourself documented as an authorized third party contact.. Well the ball moves much, much faster.

A daily phone call will get you a response a lot faster than a once a week phone call.

As a listing agent of a short sale I prepare al the documents for the bank, contact and follow up.. aside from having the right connections that have been made previously at many banks. I can get a response rapidly.
It is all about communication and how you go about it.

These are the basics of how I go about it, there are many other "techniques" involved that I choose not to disclose.
2 votes Thank Flag Link Mon Nov 29, 2010
Guarantee is a tough word.... and I would not use it. Can I come close? Yup.

Can I state that from experience I can get an answer within 3 weeks of submitted documents...

Yes. I can do that.
1 vote Thank Flag Link Mon Nov 29, 2010
Well, the question itself answers the question for me.

Probably not with an agent that projects the "I really don’t know" on how long the short sale will take. There are many short sales banks will get these transactions done much quicker for experienced agents. Agents that know the documents necessary and the contacts to get these deals done.
THAT information projected to the buyer will remove the questions of patience.

For my buyers, this queston does not apply.

John Sacktig
Broker / Manager
Orange Key Realty
SFR Certified, Short Sale and Foreclosure Resource
1 vote Thank Flag Link Mon Nov 29, 2010
There are many factors in a short sale...

#1) Inform your client of the worst case scenario (the deal may fall apart)

#2) Try to show properties that have completed the hardship package... or at least submitted it...

#3) Ask if there are offers pending

4) Find out if there is an agreed upon price...

5) Find the bank(s) holding the notes... more than one can add additional complications...
0 votes Thank Flag Link Mon Jan 30, 2012
That is a good question in my opinion. To answer I think it would depend on the buyer's time frame, or at least it might. I believe the average buyer believes that a short sale is a "good" deal, but takes some time from contract to close vs normal resales. Truth is in this market some normal resales are priced just like a short sale and sometimes can take 60 days at least to close. All properties are somewhat unique due to individual sellers circumstances. To get buyers motivated to deal with the short sale process I think we as agents need to educate them and explain the new process and procedures some short sales are in. What I am referring to is the traditional short sale vs those in the HAFA programs. The whole reason we have HAFA is to help the sellers of these properties as well as stream line the buyer process. With the new HAFA guidelines that went into effect this month, short sales have become more attractive and take less time from contract to close. However I believe the time frames buyers have to purchase and move in is still a major part of how "patient" a potential buyer is.
0 votes Thank Flag Link Tue Feb 8, 2011
Hi Dale,

In my opinion, the average buyer doesn't have enough real estate back ground to make an independent decision about "short sales."

The question may become, Do agents have the patience to work with "short sales."

Bill
0 votes Thank Flag Link Mon Nov 29, 2010
Solomon I agree with the communication issue. It's sometimes hard tto call someone just to say we don't have any news yet. Froem my experience over the last 2 years every short sale is different. The shortest one I've done was actually the first one. It took 45 day to get the first offer and another 65 days to close. Thanksgiving and Christmas and New Years all fell in that time frame.
Others however including 2 current ones have taken well over 9 months for a vast variety of reasons.
If there are multiple mortgages or leins or if it's an FHA original loan be prepared for the wheels to turn very slowly.
0 votes Thank Flag Link Mon Nov 29, 2010
Dale,

The answer is yes, but a lot of coaching and preparation is involved. If the buyer's agent properly qualifies their client and otherwise manages expectations, there can be a win-win outcome.

Lack of communication between agents seems to be the challenge with an offer that my client has in now on a short sale. Can't get the guy on the phone and he will not respond to email. My client is about to walk, not because of frustration with the process, but with the lack of engagement from the other agent.
0 votes Thank Flag Link Mon Nov 29, 2010
Yes, buyers can be patient enough. That is until they are told by a close friend or relative that they bought a home in 2 weeks.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Nov 29, 2010
Fortunately, or unfortunately, some are and some aren't--although quite a few buyers don't like to wait for the unknown outcome, and the disappointment that may follow, thus overlooking short sales altogether.
0 votes Thank Flag Link Mon Nov 29, 2010
So John,
Can you guarantee when you will get an answer on a Short Sale?
0 votes Thank Flag Link Mon Nov 29, 2010
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