Chances are improving for short sales, but it's not uncommon at all to be rejected. Here's the big issue with short sales. Sellers will pretty much agree to any offer they can get. They make nothing, so the only incentive for them is to actually find someone who can get them out. On the other hand, the banks/investors want fair market value. Also, if the listing agent is not experienced in submitting complete short sale packages to the bank and staying on top of the transaction, you have no chance of getting it accepted. You really need them to know their stuff.

Here's what typically happens on a short sale. The seller low balls the price, finds someone excited about buying a "deal" and gets the process started at the bank by bring in an offer. After a few months, bank comes back with the "amount they are willing to accept". This amount is higher than the offer and the buyer is upset he waited a couple of months to find out he needs to offer more. He bails out, but now the seller has a price the bank is willing to take, so the property is re-priced to reflect that. The second buyer now comes in at market value and ends up closing the escrow.

The main point will be if the listing agent submits just your offer or several to the bank. The correct way to do it is to submit ONLY ONE to the bank, and then the bank(s) will establish the selling price (the agent has only made an educated guess) that they will accept. They may counter back to you for a higher price once they obtain a BPO (Broker's price opinion). I'm in So CAL, but was in Salinas two weeks ago with my son-in-law for a land property problem he was having. I met with a broker there who was wonderful, and would be happy to refer you if you don't have an exclusive buyer representation agreement with your agent. I'm only concerned about that because I always make sure that my clients understand the process before we write an offer, and I make sure I know the listing agent's approach, as well. Your agent should be counseling and reassuring you as you go along -- that's what we're paid for. It is a long process, so hang in there. I have a couple down here that we've been waiting on since March, and I doubt it's much different up there. Every deal needs to have a strong advocate on your side. You're welcome to call me at 714.296.0513 or email at
Bonnie@BonnieTheRealtor.com if you need a referral and can't get your agent to answer your questions. Good luck!
Bonnie Scribner