It's a guess when a "Short-Sale" will close. With a bank owned property or "REO" closing can be more definite but getting it presented is another story!! I refer you to the "thread" which Jim states below. We hashed this one out before. Regarding IF a listing agent should disclose if the property is a "Short-Sale" or "REO"-ABSOLUTELY!! We have some who tape dance around this by stating in the MLS, "Subject to lender approval" or "Subject to accountant approval or IRS approval", blah,blah, blah! If it walks like a duck, quacks like a duck, it's a Duck! And you would think in a Buyers Market the lenders might be all warm and fuzzy to get their properties sold? Read the following taken from a listing on a REO listing:
â€œSeller offering credit up to $3300 in closing costs and a $1500 bonus to selling agent. Submit all offers on CAR form w/proof of funds for cash offers or pre approval letter from direct endorsement lender and copy of deposit check (3% of PP). Seller reserves the choice of title/escrow. Please allow time for response to offer. No reports available. All required disclosures will be provided upon acceptance. Offer As-is. Please fax to..â€
Now granted, we have some closing costs for the Buyer, little bit of incentive to the selling agent but â€œdirect endorsement lenderâ€?, 3% deposit of Purchase price? Seller chooses title and escrow (then they can pay for it!), Please allow time for response to offer (how MUCH time!!), Offer â€œAs-Isâ€, then, donâ€™t waste my time with your offer, â€œFax toâ€. You just canâ€™t wait to show one of these properties can you!!!?? What a lovely experience. This is the world once the banks get into Real Estate!!