Home Buying in Naples>Question Details

Toby, Home Buyer in Naples, FL

I have several questions about short sales in the Naples/Collier County area.

Asked by Toby, Naples, FL Mon Feb 9, 2009

First, are they worth pursuing or are they lots of trouble, time and paperwork with no end gain? If they're worth pursuing, has the time length in Naples/Collier County been shortened any because of the new processes? Lastly, what percentage of short offers actually end positively with a closed transaction? Any ideas? Thanks much.

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Answers

8
Hi Toby
The process has been getting better, and should improve even more. As a certified short sale specialist I have found that the banks are responding within 72 hrs to the listing agent, with request for access in order to do a brokers price opinion. They will then if they have a complete package assign a negotiator and it will be worked on within 5 weeks. The mitigation specialist has to be in continuous contact. I hope this will help you. Please feel free to contact me at bcaron@kw.com
0 votes Thank Flag Link Sat Feb 14, 2009
With short sales you have to have a lot of patience. It may take 2, 3 or 4 months to get an answer from the Lender. Buying a foreclosure is much easier and a lot faster. We have several foreclosures priced attractively at the present time. They are bank owned properties. You can search my website at http://www.napleshomesnelson.com and find all the properties on the market in Naples.
Huguette Nelson
Prudential Florida Realty
0 votes Thank Flag Link Mon Feb 9, 2009
Toby,

I am a CSP agent (sertified short sale professional) and have a lot of experience with short sales, both listing and buyers agent. The short sale is only as good as the listing agent/ negotiator in contact with the bank.

They are worth going after in some areas that don't have REO's.

The banks are getting better, but you have to understand within 18 months they had to set up a whole department, systems of operation, what they can and can't approve, etc...

I have read in several publications about 17-19% of short sales are getting approved and that number is getting better by the month. The reason the number is not higher is because buyers agents don't educate their buyers on what the bank is looking for in an offer. The banks get 2 independant BPO's done (broker price opinion, very similar to an appraisal) and they that is what value they place on the home. You are going to get a very good deal on the home, but don't expect to steal it.

If you have any other questions feel free to call me at anytime.

Thanks,

Scott Riddle, (CSP) Certified Short Sale Professional
Sand Castle Realty Group
239-289-1849
239-390-0027 fax
http://www.NaplesRealEstatePros.com
http://www.ScottRiddle.topseller.net
0 votes Thank Flag Link Mon Feb 9, 2009
Short sales in Collier can be a great deal. If working with a professional Realtor and or Real Estate Attorney they can be succesful. It requires diligent effort and patience but can pay off in a good deal. It can take 45 days or more for sale approval or counter offer and you need to have proper research into potential liens on the property that could effect total aquisition price. Your Realtor and his/her contact base should be able to help work through the issues.

There are also several non-short sale opportunities including bank owned properties in Collier. Some values are normal sales where the price has been driven down by the local short sales and REO properties.

I would recommend consulting you Realtor for details. If you are not working with any Realtor currently, I would be happy to further discuss these questions.
Web Reference: http://www.ken-lowe.com
0 votes Thank Flag Link Mon Feb 9, 2009
I have been listing / buyers agent for short sales. Each home has IT OWN way of working a sales offer benefit for all parties. Banks are overwhelmed with ton of paperwork at times can have very delayed response if you are winning bid.

I instruct my clients as a buyers agent submit sales offer however keep searching we may never have a return response.

% it depends on property length of time on market. I have seen short sales on market few days sold of full list amount. If home has equity you will have many buyers / investors wanting purchase that house. RULE of thumb when you submit your offer make it best offer.

Home ownership you receive annual tax benefits.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Mon Feb 9, 2009
Short sales can be worth pursuing. I have successfully closed short sales. It all depends on what time frame you are wanting. Bank owned is good if you want to get in fairly quickly. But there are some things that you need to watch out for with REO (bank owned).

With Short sales the listing agent should be experienced with Short Sales or be on a team that handles Short Sales. The last one I closed took about 3 months from the time of the offer to close. The success of a short sale depends on several factors. So, yes, the time frame has shortened. But, it all depends on having all the paperwork in correctly at one time. The offer price being FMV. The biggest time is the time it takes if it is investor backed. Investor like Freddie Mac/ Fannie Mae. They can take awhile depending on the size of the loss.

If you put an offer in on a Short Sale you should put the offer in at Fair Market Value (FMV). If the offer is not FMV then the bank may not take it. Your savvy agent can help you determine what FMV is.

If you are buying a house having a buyers agent is great to have. It is no cost to you and they represent you. You should have an agent that has dealt with Short Sales to help you through the process.

I can tell you that I have represented both on the selling side and buyers. It can be rewarding to get a great house at a great price with a little bit of time involved.

As for percentage of Short Sales Closing...... I don't know what the recent numbers are but, I am betting that they are higher then what they were. Banks are more prepared, the agents are more prepared and the seller and buyer are more informed on how the process works.

I personally have had positive experience with them. Bottom line it depends on your needs.
0 votes Thank Flag Link Mon Feb 9, 2009
Toby,

I'm sure you'll get many different answers to your valid questions. Here's mine. :-)

The last figure I heard was that about one in seven short sales actually end up closing.
Are they worth pursuing? How much time do you have for your home search? Lots of patience is needed with banks usually taking up to 60 days to reply to an offer.
Most of the paperwork is taken care of by your Realtor, so that won't be too time-consuming on your part. But again, you'll need patience.
We're hoping that overall, the time length will shorten, and we're seeing some signs of that already as some banks and our local Realtor Board are setting some guidelines for all to use.
You are probably better off pursuing the numerous foreclosures we're now seeing in Naples. Many are in great shape, the banks reply quickly, and most importantly, they're priced very attractively.

- Ted

Ted Epstein, REALTOR®, e-PRO
WOWnaples@comcast.net
Prudential Florida Realty
621 Fifth Avenue South
Naples, FL 34102
Direct: 239-249-0699
Web Reference: http://www.WOWnaples.com
0 votes Thank Flag Link Mon Feb 9, 2009
Hi Toby,

Short sales are a lot of time, trouble and paperwork, BUT, great prices on properties can be had. You must, however, be willing to put up with the 'process'. No, the time length has not been shortened, yet. I have no idea of the % of short sales that end positively, but it is certainly worth the effort to get a fabulous price for an otherwise unattainable property.

Good luck,

Dennis Leffert', J.D.
Lic Real Estate Broker
0 votes Thank Flag Link Mon Feb 9, 2009
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