Iâ€™ll continue to poke a stick in the beeâ€™s nest
First of al the original question came from a buyer in San Diego, not Roseville, or Marin, Or Vero Beach or 85260 (wherever that is?) or anywhere else. Every market is different to some extent, even within a market, it can be a little different from area to area. I certainly would not say how things are in a market I did not really know
Secondly, I am not saying a specific agent or even every agent is lazy, but there are some that simply are looking for the path of least resistance and donâ€™t want to get into a short sale deal because they have to work harder and it takes longer to get paid. I am sure you all even know of agents that look at the commission paid on a deal and then steer their clients to the property that they make more money on. Again, no one specific or on this case even most agents. Most agents are honest, ethical, hardworking professionals
I am just really tired of hearing agents saying how REOâ€™s are the way to go to get a great deal and even on the local news here there was a Broker who flat out said stay away from short sales. Guess what if everyone stays away from short sales, a few things happen. 1) they donâ€™t get sold. 2) We get more REOâ€™s. 3) banks get even worse in closing short sales.
I think most people donâ€™t realize how bad a foreclosure is for a bank. Having too many non-performing asserts compared to performing assets impacts a banks ability and cost to borrow money and they need to borrow money to lend it. Banks are not in the real estate business and do not want to be.
Sure the banks are slow with dealing with short sales. Part of the problem is agents not knowing how to manage and submit the deal to get an approval. Part of the problem is buyers thinking that no matter what a property is listed at, they can buy it at a huge discount from that price. Some (and certainly not all) agents donâ€™t educate their buyer with what the fair market value of a property is and that the listed price often (not always) is a realistic indication of the property value. Everyone thinks that the news is 100% correct and values are falling at a double digit rate every month everywhere. When you get a buyer offering to by at 70% or less of market value and it gets turned down, itâ€™s the banks fault , right? When the file gets submitted without pay stubs, bank statements and a financial statement and that delays getting the deal approved, itâ€™s the bankâ€™s fault, right?
Banks will do almost anything not to foreclose, as long as it is reasonable. Sure they want to get the highest return, but they also track how many potential deals go into foreclosure too. Think about it, you have underpaid , under trained people who get piles of files every day and they sole task is to get files from the floor to ceiling stack of pending decision to the 6â€ high stack of approved. They like it when they can get a deal done.
Not every buyer is on short a time frame that they have to get a deal closed in 30-45 days. Many have a much longer available timeframe and will wait out the short sale process.