Short Sales – The Pitfalls

Short sale definition: Selling for less than what is owned on the home. This needs the approval from the servicer (the bank, the note holder) before this can be accomplished. Sellers do not net anything on the sale.

I often have buyers interested in looking for distressed sale homes; bank owned, short sale, etc. We found one home in particular that was the best deal in the subdivision – a short sale. I warned my clients that short sales can take quite some time to accomplish because, although the sellers are eager, the bank (or the holder of the note), isn’t as they have no emotional ties to either party. My buyers, knowing that this would be a great investment, decided, regardless of the time it might take, to go ahead and put in their offer.

Although we were assured by the listing agent that the bank had previously approved the short sale so our wait time for bank approval wouldn’t be “as long”, we’re still waiting, two months later. My clients are getting frustrated by this lengthy wait however I have to keep reminding them that I told them it would take some time to accomplish. They’re just very anxious.

Needless to say, we’re still waiting. Part of the problem is that the listing agent and her assistant who are the only ones, aside from the sellers, who can contact the bank and they’re not being diligent. They don’t return my phone calls or emails. I’ve spoken with their broker who assures me that they are working on it however I’ve made it strongly known that I require informtation. I require updates. I require my phone and email messages to be returned.

So now that the listing agent is non-responsive and we’re not getting the information and updates that we need, my buyers are ready to walk away from their offer in pursuit of another home.

Moral of the Story: If you are trying to sell your home via a short sale, use an experienced real estate firm to handle your short sales. Don’t entrust your home to an agent who says that they can do it when they actually can’t. Contact us at Dancing Star Realty at: Diane Frey knows how to make short sales work! Or call at: 8977-488-2234