My home is a Short Sale. we have lost 3 buyers because the process is so long. How can I be sure a buyer will stay in long enough to Close Escrow?

Asked by Margaret Vierra, Morgan Hill, CA Fri Apr 29, 2011

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Wayne Giroux, Agent, Los Gatos, CA
Sat Jul 6, 2013
Margaret - I'm sure you know the answers - the ones you see may help some ... Give me a call if you'd like to chat about it ... W
0 votes
Ron Thomas, Agent, Fresno, CA
Thu Jul 4, 2013
TWO YEARS OLD!!
i don't think margaret is listening.
0 votes
Debby Bright, Agent, Oceanside, CA
Thu Jul 4, 2013
I'd make sure the property is pre-approved for the short sale by the lender so that all that's left to do is find the buyer. Ask your lender how you can speed up the process. It's ridiculous how long the lenders take to get these short sales approved. The large lenders like B of A settled with the feds for billions of dollars and part of what they were supposed to do was streamline their processing of these underwater loans. It doesn't appear they're holding up their end of the bargain.

In any case, if you can get all the work done up front with the lender's cooperation, it should only require a month or so to close escrow.
0 votes
BG, Home Buyer, Phoenix, AZ
Fri Apr 29, 2011
Provide potential buyer some financial incentive to stick around !
0 votes
CJ Brasiel, Agent, San Jose, CA
Fri Apr 29, 2011
Margaret -

1.) Ask for 50% of deposit now and 50% upon short sale approval from buyer.
2.) Ask for buyer to complete inspections in advance
3.) Make sure you are doing everything in your power to engage and escalate on behalf of the seller with the short sale lender. Make sure documentation for comps/value is clearly presented to short sale lender. Be assertive but kind with negotiator, always include cost of loss time (mtg payment) and value for the neighborhood.

Good luck!
CJ
Web Reference:  http://www.TalkToCJ.com
0 votes
Kamal Randha…, Agent, El Sobrante, CA
Fri Apr 29, 2011
No guarantees. I'm in the same boat. I have tried to only accept offers from agents that say their clients will stick around but after a few weeks when I check with them, they tell me their clients have moved on. They don't even have the courtesy to email me to let me know so I'm not wasting time on their contract. I can give names of these agents but I don't believe in maligning people in public. I can tell you in private though..LOL.
Good luck with the next one Margaret :)
0 votes
Eli Givoni-S…, , Boca Raton, FL
Fri Apr 29, 2011
You need to be selective and get the right buyer. There is certain criteria we look for in a buyer to make sure everyone is on the same page. We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes
Norman Aless…, Agent, San Jose, CA
Fri Apr 29, 2011
Hi Margaret,
Well here is how I see it from a buyers agent side, basically what I see is that the listing agent wants to get an offer into the bank so they can get the procees started, they also state that they are still taking back up offers this keeps the process going. Once you get a BPO done by the bank and have what the 2nd will take as a pay-off this just becomes a regular sale time wise,so if the buyer backs out you have back up offers and go from there. I have also seen listing agents demand the buyer make the 2% or 3% deposit in escrow as a way to keep them more committed. And basically you ask the buyers agent how committed the buyer is to your property, of course you won't always get the truth, but it never hurts to ask.
I hope this gives you some ideas to work with.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
DRE# 01397256
0 votes
John Herreid, Agent, Media, PA
Fri Apr 29, 2011
Unfortunately, there is no guarantee.

One good way to increase the probability of success is to make sure that the buyer(s) understand that it could be a long time before the bank says yes. If they know this going in, they will probably be more patient.

Another good piece of process to use is to really stay on the lender to get the deal approved. If the person with whom you are dealing seems to be unresponsive, escalate to his or her boss and go as high as needed to get an answer. Someplace, there is a decision maker who can get your deal approved.

Good luck
Web Reference:  http://www.johnherreid.com
0 votes
Andrea Wince…, Agent, Milpitas, CA
Fri Apr 29, 2011
I heard recently that the statistics on successful short sales are grim. Patience is a virtue but most buyers don't want to wait unless they are partial to your home specifically. Otherwise, there's another around the corner. The best thing to do is put some pressure on the bank to speed things up ... try calling them every day, very early in the morning (find out where they are located) and call them at opening (their time).
0 votes
Phil Rotondo, Agent, Melbourne, FL
Fri Apr 29, 2011
Finding a buyer is hard enough when you're talking about a short sale.
There is one company here that requests that (a) escrow be deposited at the time the contract is signed/initialed by all parties; and (b)any and all inspections be completed within ten days of the signed contract. This way the buyer has already put out $X to perform all the inspections.....the buyers may then be reluctant to bust the deal before lender approval.
I hope that helps.
Web Reference:  http://www.321property.com
0 votes
Wayne Giroux, Agent, Los Gatos, CA
Fri Apr 29, 2011
You are unlikely to ever be 100% sure a buyer will stay long enough. The best assurance of a buyer staying is quick action by your bank - an item over which you have no control. If the buyer does inspections without waiting for the lender approval that can cement interest due to having made an investment - however most agreements state the time to do inspections starts upon bank approval. Similarly, if a buyer has already made his initial deposit, that can psychologically encourage hanging in, but most agreements state the deposit will be made upon lender approval. The best way to 'assure' it is to have a home that shows well and is very desirable at the negotiated price. Buying a home is an emotional decision as well as a financial one - so you need to do everything you can to make the buyer fall in love. A buyer must respect the contingency dates in the agreement and cannot just say they've changed their mind - but their are many outs as you have seen.
Web Reference:  http://www.waynegiroux.com
0 votes
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