Suncoasteam Realty, LLC
4055 Tamiami Trail
Port Charlotte, FL 33952
Bottom line: unless the bank has already signed off on a pre approve closing price, look elsewhere or be prepared to wait......................
Don't chase "A CLOWN CAR FULL OF CONSTANT HORRORS!"
Short Sales (i.e. Long Sales) are very often a 10 to 1.2 yr train to nowhere!
There are too many good deals on Foreclosures and Re-sales where you can close with less out of pocket to be chasing a dead end Long Sale!
I've been helping First Time Buyers for 22 years as a mortgage professional and I will tell you what I have always told my clients here in New York: If you are a First Time Buyer, steer clear of foreclosures and short sales.
Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.
For Short Sales, my attitude of late is that First Time Buyers should steer clear. Short Sales tend to be a better deal for the homeowner than for the Buyer. You'll wait MONTHS for the homeowner's Lender to approve the short sale; maybe as long as Six or Seven Months. Meanwhile, you're stuck in a contract to buy that home. I closed a short sale recently with a Buyer who, after seven months said this at the closing table, "I don't even want this house anymore."
And he didn't even get the "deal" on price he thought he was getting! The house appraised for only slightly more than he paid for it at the short sale price. He walked into this deal thinking he was buying a home for $100,000 less than it's value. In the end that wasn't the case.
There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay. It's a Buyer's Market, after all!
RIGHT ON JIM!
Same old story every time..."Steve, I know you told me to avoid Short Sales, but the Listing Agent said it was already approved......
....Fast forward 1 yr later...
...."Steve, I wish we had listen to you, this has been a Nightmare!"
This plays out over and over all over FL!
Let's not lose sight of the fact that the "short sale" process in our location has improved greatly. There was a time when no banks were approving these transactions and the vast majority of agents were steering a wide course to avoid these doomed transactions.
With short sales the fact remains that each situation includes a variety of possible situation ramging from easy to impossible. There is not accurate formula for identifying a short sale's time requirement.
I (as well as many other) was hopeful that the new federal regulation imposed on Fannie Mae and Freddie Mac would streamline this process by mandating response time for purchase offers on short sales. The jury seems to be still out on this.......
It's probably best to focus on the level of improvement we have whitnessed and hope for a continuation of this. Experienced short sale agents that truly know and understand the process can help buyers to identify those opportunities that are worthy of persuing as well as when to bail.
I have seen a new lowâ€¦
I have one thatâ€™s been dragging for 8 months, then we actually closed and funds were sent to the Short Sale lender a week ago last Thurs and it's STILL not fully closed!
Maybe a blind squirrel occasionally can find a nut, but like Iâ€™ve been saying, by far, Short Sales are Clown Cars Full of Horrors!
From 1 month to 2.5 years.
It is an impossible question to answer without a LOT more information, and even then, it is a S.W.A.G. because of the personalities involved.
Statistically only 70% of short sale offers succeed. The first buyer saw old age approaching and bailed, or they found flipper house available immediately, and bailed, or the bank raised the price and the buyer bailed, or the investor wanted a cash contribution and the buyer bailed and or,my favorite, the big bank who is short selling the property, and funding the buyer,won't approve the buyers mortgage because of the terms and conditions.... they created!!!
Then, let's not overlook the appraisal fix in play by the banks.
There are ways to make a short sale work. But they are not very obvious.
Other than those things, short sales are no problem at all! Each situation is different and all of them are highly complex and thoroughly convoluted. Few buyers have the patience and ability to endure abuse to see a short sale all the way to conclusion.
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
get ready for an ugly Mr. Toad's Wild Ride!
Shart Sales are a Clown Car Full of Horrors as many find after 10 months waiting on a Hope To Gain!
Don't stop looking for re-sales and foreclosures because that Short Sale bank can care less about buyers trying to buy a home they are being forced to allow to be sold for less than what the owners owe!