Short Sale Saga: Santa Clarita Homes are Receiving Multiple Offers, Banks Still Slow to Respond

On the short sale (pre-foreclosure) front in Santa Clarita, many homes listed as short sales are now receiving multiple offers from buyers. Some of these buyers intend to occupy the homes, and some are investors deciding to take advantage of the lower home prices.

Within the last couple of weeks, virtually every home that I called that was listed as a short sale had at least one offer outstanding. Granted that not all of these offers are anywhere near the asking price, but at least the interest is growing and many Realtors are reporting that they are getting at least one offer at or near the asking price.

Remember that with short sales, the asking price is just a starting point - the bank has generally not approved a sale at this price. And some Realtors are listing these homes with come-on prices that they know are nowhere near what the banks will accept, just to encourage buyers to submit offers at any price.

The good news is that once these homes are sold, they will no longer be competing with regular non-distressed homeowners for buyers. The not-so-good news is that many banks are still very slow to respond, often taking months to respond at all. And often the banks are still responding by rejecting all offers, sending everyone back to the drawing board even though they are very close to the bank's BPO's (Broker Price Opinions) and appraisals.

If you're considering making an offer on a short-sale home, be sure that you have a Realtor who is experienced in handling short sales. Also, be sure to get pre-qualified with a direct lender (not a broker) so you can submit that pre-qualification letter along with your offer. The better qualified you are, the more likely the bank will consider accepting your offer.