I saw the post above today on short sales, which reminded me of this conversation we had a few weeks ago.
Has anybody here tried to buy a short sale? I expect to see more of them as foreclosures increase, but they always seemed to be fraught with danger to me, and Frank confirms that.
5 comments:
THANK YOU so much!!!
The entire blog is a fantastic but the Short Sale and Foreclosure discussion is a treasure.
Good thing we won't be having many foreclosures here!
My experience with Short Sales as a RE agent has shown many of the sellers not wishing to prepare the paperwork needed, or asked for, by the lenders.
Regarding the lack of a quick response by lenders, that's definitely a reality. In their defense, it's their property and they can take their time if they wish. In Sacramento, more and more agents are getting short sales approved and sold.
So maybe when the foreclosure market heats up here, the lenders will be ready, willing and able to make quick deals.
Na, I think lenders might be ready, willing and able to make deals when THIS market capitulates, when they are forced to take serious mark downs on foreclosures to sell them. The low cost properties will get marked down first, IMHO, because the reductions are small dollar-wise but the cost to carry is higher as a % of value.
After considering the business interests of the lenders and insurers I believe they are trying to postpone markdowns as long as possible. The day that the FDIC decides to close down a bank is the day that the buyer-bank will demand a marked down value of the delinquent and foreclosed properties. I hear the FDIC is looking for the staff that helped them with the S&L mess.
There is a real estate company that claims 91% success with short sales. Since I can't really verify that I won't promote their name. But before hearing that, I had heard only about 10% close. One agent in my office says he has closed 2 out of 4 if I recall correctly.
Short sales are for the patient.
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