Hot Topic! Yes, indeedy. Short-Sales....the process of one obtaining a home with the existing sellers' lender receiving less than what is owed on the loan. Not a short process by any means. Not always guaranteed to close. But, alas, it is what we are facing in the current market and I anticipate it will continue for quite some time. So, shall we wait for approval from the sellers lender? Hmmm......my clients know my catch phrase...."Like Throwing Spaghetti At A Wall" Keep throwing, something's gotta stick!
When you see a property that is listed as a short sale...don't get that excited thinking it means you can get it for less. The bank that holds the note does want current market value. They are being 'shorted' on the balance outstanding on their loan. They need to make as much money as possible. They do have a board of directors and investors to report to.
But, don't run away from them either. There won't be much to look at if you do. Find a home, short-sale or not, that you can live in. One that you would be happy living in. Write those 10 wish list items, get 7 or 8 of them. If it is a short-sale, write an offer. A valid priced offer. But, don't stop looking!!! Never stop looking. Never 'fall in love' and not be able to see something else that would work for you and/or your family by waiting for a short-sale property to close escrow.
You write on one, get accepted. Then what? On top of the continual search, this is what generally happens with short-sales.....YOU GET FRUSTRATED!!! Ah, but it is what it is. So, the listing agent forwards 100's of pages of documents, your offer included, to the sellers lender. The lender does a BPO (Broker Price Opinion) to see if your offer is even valid, $$ wise. Then, they look through all those 100's of pages.....slowly.....and assign a negotiator. The negotiator then crosses off all the items that the lender will not pay for (remember the seller is in financial hard-ship so the lender pays the fees to sell the house) and says, many months later....okay, we'll accept this buyers offer. And, by then, often that buyer has walked away and found something else because he/she knows it may never have come to fruition anyways. So, the poor listing agent has to start all over again with a new buyer! And, frequently, the process takes so long, and one side of the bank doesn't talk to the other side of the bank....and lo & behold....it's gone to Trustee Sale and it's been foreclosed upon. So, wait, you have another shot at it! It will come back as an REO (Real Estate Owned), or foreclosure......someday.....
It, unfortunately, is the market that we are in today. You need an agent with experience, and patience, to guide you through the process. It is frustrating on all parties, but it is what it is. And, you gotta keep tossing that fettucini!
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