Are foreclosures a good deal or are they just a head ache?
There was a time when the REO was a great deal but not anymore. Recently, I have been noticing in the Sacramento County area, that when searching properties in the MLS and comparing prices, the REO is no longer below market value in some cases they are even a little high. Today, the market has shifted and it seams that the short sale is fast becoming the new hot ticket in town.
Despite the Buyer theoretically have the opportunity to direct the escrow, if the Buyer wants it, they will still have to agree with the banks demands which is using their vendors such as Title and Escrow which we all know is a huge head ache.
So is it worth it? That is the question I pose to each Buyer who then gets to make an informed decision about what she or he is willing to accept. Fast Head Ache or Slow Migraine?
If the Buyer opts for the better deal and takes the longer route, they at least know the head ache can turn into a migraine at any point, but at least they made their own decision.
So why is this might you ask?? In my opinion, the Seller's are no longer attached to the outcome of the overall bottom line to the bank and there are plenty of agents who seam to not be invested in the neighborhood, and furthermore they are more than willing to start the process with a quick offer to the bank just to get the ball rolling. I might be wrong but that is what seams to be the trend these days.
If the promises of the bank like Wacovia and Wells are truly going to be 30 to 90 business days to an answer for approval, we are going to be seeing a real change to our statistics. It will be interesting to see how this next quarter will play out. In the mean time, I'll keep a lot of Advil on hand.
In the last couple of weeks I have closed two short sales representing Buyers that took over 9 months to complete!
What's Short About That!!
When the term is loosely thrown around, it's not because the escrow or process is short, it's because the bank is approving a short payoff. What I suspect is truly slowing the process, is the method used by the negotiators working the file. Often Listing Agents, Short Sale Processors etc. call weekly on a given day to check on the status of your transaction. For example, if you need to send an updated bank statement you fax it to the bank and the following week the processor checks to see if it was received. If not, you send it again, wait another week and check status. You can lose up to 2 to 3 weeks just making sure the documents are received!
My business runs differently. I personally maintain my own files, negotiate with the banks and keep all parties in the loop. Not only does it keep the Buyer in contract but speeds up each part of the process. This creates happy Sellers, happy Buyers and I get to keep my sanity.
There is no advantage to a Buyer who decides to let the Listing agent represent them. It's doesn't make the tranaction go faster, the Buyer doesn't get a better deal and it doesn't necessarily mean you will be better informed.
What I recommend is consumers work with a Certified Distressed Property Expert (CDPE) whose skill sets will expedite the transaction. Realtors, who hold this credential are trained negotiators and often times process their own files.
Caveat Emptier, beware of who is processing the file and don't be afraid to ask your listing agent if they will be personally handling the transaction. In most cases if they are, you can be assured it would be the most efficient way possible to speed up the process.
Wishing you a "Short" sale.
For more information feel free to visit my website at www.AvailableREOs.com.
Serving the Sacramento Tri County Area for all your Real Estate needs. Call or e-mail me today and let me see how I can assist you!
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