If you are a real estate agent, I am sure you would agree, we have never had so many requests from buyers who only are interested in short sales, foreclosures, or (REO) bank owned properties.
the most common request we see in Phoenix is is for the "Short Sale"
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However, if you have tried to negotiate a "short sale" transaction, you probably know that not all Short Sale are alike.
In fact, not all Short Sale are even a Short Sales at all.
This morning, a real estate investor called and told me that he had put an offer in on a "short sale" home recently. He shared with me that it has been more than 10 days ago and had not heard anything from the bank and that the realtor said to be patient.
He wanted my advice. Here's what I shared. I told him, ....
Unfortunately, many, if not most "short sale" listed in the MLS are not approved "short sale"s.
Most real estate agents, just take a listing, and market and advertise the home at a price that would net the seller less than the amount owed. Then, when an offer is received the listing broker submits that offer to the bank.
In fact, I was told by a well respected teacher at the AZ School of Real Estate , Bill Dowdy, that this is averaging about 78 days! yes, almost 3 months.
The more professional way to handle a proposed "short sale", (I say proposed, because, not all banks will approve a "short sale") is a step by step process that if approved, the bank will in effect, issue a "short sale"approval.
Without a detailed expanation of the step by step process, simply, in a nutshell, you need a hardship letter, and substantiation of financials that you really cannot afford to pay your mortgage any further.
Now, when a seller receives this certificate of "approval" fromt the bank, the property can effectively be marketed and sold as a "short sale".
These are the only kind of 'short sale' properties I recommend to my clients on which to make offers. We get a speedy response and if offer is not accepted we can move on to the next "short sale"and not wait 75 days or longer to know whether or not our offer is accepted or declined.
Be careful, speak with your real estate professionals, there are many issues such as rights to earnest monies, breach of contract, etc... that buyers face when making offers on "short sale" properties that have not yet been approved by the seller's lending institution; they are much different than Foreclosures and REO real estate.
I don't want to say real 'short sales' , actually bank approved, short sale listings don't exist. (they do)
However, it may be as rare as finding a 4-leaf clover.
If you have any other experiences or suggestions in your parts of the country, I would love to hear.
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Copyright © 2008 By James Wexler, All Rights Reserved. *when is a Short Sale actually a Short Sale ?*
Contact James Wexler (480) 221-8080 for all your Phoenix |Scottsdale area Real Estate needs.
one of the challenges facing real estate buyers , and thus, home sellers , is the difficulty for home buyer's to obtain loans. We are suffering in many of the towns of Maricopa County, North Phoenix, Peoria, and Glendale where we have been designated a 'declining area'' ; thus tightening credit further in most of Arizona.
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