Jeff Metcalf, REALTOR(R)
Watson Realty Corp.
There is no shortage of "short sale" horror stories.....this is a fact but from where we stand the situation is improving. Initially, many agents were steering a wide course to avoid these transactions but today is seeing more and more individuals embracing them and a major increase in the number of closed sales.
Every case is an individual case that needs to be evaluated on its own merits. Today's market has evolved to the point that buyers should be considering all housing availability including regular sales, foreclosures, and short sales. To take any other approach may result in the buyer missing out on a tremendous opportunity.
When dealing with short sales the best opportunities often are those that involve properties that have their price already approved by the lender. This is normally an indication that the lender has invested time and effort in being able to appreciate the financial burden this home brings to them and what their position should be.
You should listen to these stories but don't let them scare you off!
The real problem is that you could wait the 9 orr more months and then it falls apart, time wasted.
La Rosa Realty
Let me give you two examples that happened to me in the last week. I have one short sale that has been under contract for 15 months. Bank finally came back after 15 months with a counter offer of 122,000--buyer can't make up that big a difference, so after 15 months, it has all fallen apart. On another one, contract price was 209,000--bank came back with non negotiable counter offer of 240,000. Both deals fell apart--30-40,000 price differential killed both deals.
Myke Triebold, GRI, LMC, SFR, ABR
There is no shortage of horror stories on short sale, but like anything in life, there are also lots of great strories as well. There is a lot that can affect a short, from the seller's cooperation, the realtors experience and lender's employees level of knowledge. I have had short sales close within 60 days from offer to closing, and it was possible because all parties involved did their part. When I take a listing on a property that I know will be a short sale, before it even goes on the market, I ensure that I know what that seller's bank's requirements are as they vary. The seller is then assigned the task of putting together all of the documentation needed to get things started with the bank. The key in all of this is to ensure that the realtors do have the experience to work on a short sale, as timing and proper documentation is vital.
RE/MAX Advance Realty
CDPE - Certified Distressed Property Expert