Home Buying in 89506>Question Details

T, Home Buyer in Reno, NV

why is a short sale property so hard to get into?

Asked by T, Reno, NV Wed Jan 23, 2008

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7
It really comes down to who the agent is that is working the short sale. In Reno, just about every agent is now working on short sales, but very few actually have reliable training on them. Patients from the buyer is also essential. The lenders on this files are backed-up at a level that is incomprehensible. As long as there is a clean package complete with an offer that falls within their net guidelines, the short sale should go as smoothly as possible. The number one complaint from short sale negotiators is that they are having to deal with agents that have no business working on short sale transactions. I would make sure to do your research on the agent listing the property, and contact them so you can get an idea of how knowledgeable they really are in short sales. As far as follow up. I personally try and follow-up via email with everyone involved in a transaction on a weekly basis. Even if there hasn't been any change since my last update, I will just state in my email that we are still waiting on (blank).

Short Sales are so involved, that I could go on for hours about them. Feel free to contact me directly if you have any further questions. I believe one of our key functions as Realtors is to continue to enhance our knowledge of the current real estate environment, and I'm more then happy to pass any knowledge I have along to the public and my colleges.
0 votes Thank Flag Link Fri May 15, 2009
I have had problems getting into short sales also. And I’m an agent! Most times because there are already multiple offers on a property. I think sometimes the realtors get so many calls, after an offer has already been accepted and there are a few in the wings, that they just stop returning them.
0 votes Thank Flag Link Fri Apr 24, 2009
Why deal with lenders and waiting on banks to make up their minds??? They are slammed with people trying to short their homes. Think about the easy and most misunderstood concept in Real Estate....Lease Purchase!!! If you have any questions, let me know!!!
0 votes Thank Flag Link Fri Apr 24, 2009
I agree with you that Short Sales are a challenge. These properties are not for all Buyers nor are all these properties "deals". However, they can be a worthwhile purchase if your timeline will accomodate their lengther process. You hear the terms forebearance, foreclosure, Short Sale, REO a lot today but their definitions are not well understood outside the Real Estate Industry. A Buyer must educate himself or herself prior to entering into a Short Sale transaction. I believe that many Buyers become frustrated or confused with these kinds of purchase because they did not learn or were not told ahead of time what to expect. A Realtor with experience in Short Sales can detail for you all that is involved. If you pick up a copy of the current Realtors Real Estate Directory (usually found outside Supermarkets and Banks) on page 11A you will see that there is a Free Foreclosure/Short Sale class being held in Reno on Saturday, March 15th, 1pm. It will be held at The Resort at Tanamera beginning at 1pm, 900 South Meadows Parkway off Double R Blvd. in South Reno. There is no charge to attend the class but you must pre-register. At the class, one of the presentors, First Centennial Title, will detail the differences and similarites of the escrow process when it involves a Foreclosure or Short Sale and third party approval. REO properties will be explained as will pre-foreclosures. The sole purpose of the class is to educate the Buyer on these transactions before a purchase offer is made. You can pre-register to attend by calling 1-877-733-0509 ext 8628. All attendees will be given a list of some Short Sale/Foreclosure/REO properties currently availble for sale in Reno/Sparks. Sellers interested in pursuing the possibility of a Short Sale for their property should also consider attending.
0 votes Thank Flag Link Wed Mar 12, 2008
Short Sales are filled with potential issues and problems. The current business climate at banks and mortgage companies compound the short sale issue. Banks have been writing off billions of dollars each quarter to cover asset losses. They are seeing the highest level of short sales and forclosures in their history. Compounding this issue is the fact that to help with earnings short falls these businesses have been going thru staff recudtions i.e. layoffs as well. Larger than ever workload, fewer staff to handle the workload create a less than responsive organization in regard to short sales. On top of this, what may appear to be a good short sale (for the bank) today may not be a good short sale (for the bank) tomorrow. The bank may have had a change in direction regarding short sales and may prefer to just wait and foreclose on the house. They may have written off all of the assets that they can and taken all of the losses that they can for a specific quarter and no longer are in a position to add additonal write-offs at this time. My title company resources indicate that less than 25% of the short sales that they see ever close. I would not expect to get a short sales completed in less that 90 to 120 days based upon today's current market conditions.
0 votes Thank Flag Link Thu Jan 24, 2008
Hi T,
Not knowing all the particulars to your situation, generally speaking if you are having a hard time it is probably because of the third party (bank). Even though the seller has listed at a given price, the bank must approve the sale and price depending on what the sellers owe the bank and what is to be done with those monies. (Pay the bank, have the bank forgive, or?) Another problem we see is that banks are not the easiest to get ahold of, especially if they are based on the east coast. If you have an agent trying to get thru to them on westcoast time, they have limited their ability to talk with them. In our office, if dealing with east coast banks, we are getting up and calling at 6AM and completing those calls by 9AM.

The other problem may be in the type loan you have been approved for and/or the offer. If you are asking for all escrow fees and inspections to be paid by the seller, your chances are limited. Most banks will only pay the normal split of fees paid by the seller. I am not saying it can't be done, but again more difficult and not always successful.

My suggestion would be to make sure you are working with a buyers agent (not the listing agent) and ideally one that is experienced in short sales. They do take more time, but if you can hang in there you can get some great deals.

Good Luck!
0 votes Thank Flag Link Wed Jan 23, 2008
Hi T,

Is the property listed with a Realtor? Please explain your situation further so we can understand what you have been experiencing.

Thanks!
0 votes Thank Flag Link Wed Jan 23, 2008
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