I didnt write this article, but it is a great story!

excellent Short Sale Success Story!

One of the problems with Short Sales continues to be Buyers who are not willing to commit to the process.  Case in point;  We received an approval on a short sale on Wednesday.  After calling, emailing, and texting the Buyer..last night I received his email stating they will not be able to close due to the fact the interest rates are too high.   Too High?  We are still among the lowest interest rates in nearly 40 years.

The truth of the matter is, this Buyer had placed another offer on a different proprerty (with a different Agent) who was probably unaware that they did this.  

I think the Buyer was shocked when I wished him luck on the other property - He had no idea that I knew.  A contract to purchase a home is a CONTRACT.  If a person places multiple offers and the terms of the executed contract are met- there is an obligation to complete the transaction.    Now, I am going to let the Buyer out of the contract because who wants to continue to work with a Client who is dishonest, and lacks the integrity to fulfill their part of the Short Sale Closing.

The biggest loser is the Seller who is trying to avoid a foreclosure. 

If you get tired of waiting on a Short Sale decision - please communicate with your Agent and inform them you want to cancel the contract.  You can’t just go around placing multiple offers on different properties.    That does not help the process, and if you are not financially able to perform on every contract you write - it is fraud.

In a society where we want it NOW, Real Estate transactions can be frustrating.  It is frustrating to get answers from the Bank (Selling Short Sales).   A commitment from the Lender to finance for the Buyer.  We have delays with appraisals, delays with repairs, delays with title search (because so many Real Estate transactions now involve foreclosures). 

Just put on your seatbelt and go along for the ride.  It is like a roller coaster, up and down. 

I have a Client who put in an offer on a Short Sale and then proceeded to call every other day wanting an answer.  I told the couple to expect 60 - 90 days before we get a response from the bank.  Now,  just 62 days later we are ready to proceed.  However, the couple has now put in multiple offers of other properties- thus, we get short sale approval - only to find out the “Buyer’s have moved on”.  People, this is one of the MAIN reasons Short Sales fail.  Buyer’s MUST be patient!  This situation is so unfair for the Seller who is trying to avoid foreclosure. 

Short Sales are not for the weak of heart or the faint.  If you grow tired easily, or MUST be in the property in 60 days - Folks, Short Sales are not for you!  They are a great way to purchase Real Estate - A great way to avoid Foreclosure; But understand the Virtue of Patience.

By now I think most folks looking at buying a short sale have come to realize that it is not necessarily a “short” process.   Many lenders have started stream lining the process, to make it easier, but it is still a long process.  All Lenders have a procedure, but they may differ from other lenders.  Don’t assume Lender A will work their Short Sale just like Lender B.   The key is to find out how the Lender wants you to proceed (and play by their rules).  Most Short Sales which fail to close successfully is usually because of missing information, missing financials, or lack of providing documentation in a timely fashion.  I tell everyone be patient, don’t get mad, be realistic, let’s just work hard and get it done. 

Absolutely!  The internet gives us so many options and details in viewing Real Estate.  You can find out how much the Buyer paid, what the property Appraiser says it is worth. You can view it from Google Earth to see how the property lies.  You can determine what the houses in the neighborhood are selling for, and what the current market value is of the home you are considering.  Your Real Estate professional can also view the property for you and take many pictures, adn better yet - video. 

Of course, you still have the option to write in a “right to inspect” addendum (this usually gives you 10 days to visit the property in person after the Seller agrees to your offer).  So, if there is an amazing deal on a property and you are truly interested, dont be afraid to make an offer sight unseen.  Utilize the wonderful resources available through the internet to make a well informed decision.  Rely on your Real Estate Professional to help guide you through the process.

I always tell my Buyer’s “get ready to jump through hoops”.  The Lender will ask you to jump through so many hoops you will get tired.  And, then when you think you have finished, they will tell you - the hoop was the wrong color - please jump again.   Then, their underwriter will inform you that you jumped facing the wrong direction.  And be sure to jump really high.  It is possible you will be asked to “craw” through the hoop. 

Its not the “hoola Hoop” we all used to play with ….but buying a house isn’t the same way it used to be either.   Just prepare to jump, dont get mad; you will get into your home, maybe breathless….but just hang on, you will get there!

Had a closing last night that took over four hours.  The Buyer was signing while the Seller waited in the lobby.  The loan documents arrived just minutes before the Signer got to the office.  There are always “little surprised”.   The Buyer and Seller both must give and take to make transactions work.  

I hear too often….”the last time I bought a home, or the last time I sold a home it wasnt this difficult”    And, Im sure it wasn’t; but this is the new NORM.  You cant get upset, doesn’t help to get mad - just go with the flow….