Short Sales - Revisited

Once again I find that we are getting a lot of questions about short sales. Most of these questions seem to be about time issues i. e. How long does it take to get an answer from the sellers bank? How long until the deal will be finally done? etc..

The truth lies somewhere between, "I have no idea," and "possibly before the next millennium." Some agents including myself have teamed up with different "Short Sale Processors" who seem to have better luck in getting the deal closed. Not necessarily faster, just in getting them approved. The main reason for this is their efficiency with the paperwork. Clients don't usually know this but the banks all require certain forms in an order that they want the file in. The problem is that all banks have different forms from each other and the order and how they get them delivered is a mystery for the ages! So the short sale processors usually have all of the main banks and some of the smaller ones figured out and their list grows daily thus making it easier and less time consuming for the agent and the banks.

There is unfortunately a bank out there who can take over nine months to get an approval and then are shocked when the buyer's appraisal comes in a lot lower than the original price. If that happens to you, most likely you will have to re-submit the new appraisal to the sellers lender and even possibly start the negotiation process over again. Wow! No one really knows how long these deals will take including the lenders. The investors sometimes take quite a while when you make it to that stage. It's really a shame that we can't clear these properties sooner, it would be better for all involved.

Why do a short sale then? Well, lenders say it's better on your credit report than a foreclosure but I have heard that they will still count against you just as much as a foreclosure so not sure how accurate that information is... The true fact is that if you intend to do a short sale, you better contact an attorney to find out what the consequences are in your state. The laws are different in each state and the sale could be the best thing or the worst thing for you. Whatever you decided to do have patience when you are buying or selling a short sale, as I wrote in one of my earlier blogs. "The only thing short about a short sale, is the money."

Torres Ramey

Broker / Salesman

702-371-2785

E Mail:tramey@rconnects.com

550 W. Pioneer Blvd. Ste. 100

Mesquite, NV 89027