Pamela Palmer

If you are confused by short sale listings that have no real estate sign, no lock box and no interior photos of the home, you are not alone.

You may also wonder about the marketing magic behind ridiculously limited marketing comments such as “Nice home in established neighborhood”. What could the listing agent be thinking? Is the seller aware of the fact that the agent is doing nothing to promote the home? Showings are by appointment only but the seller (or tenant) never agree to show the home. These are all signs of an Uncle Bob Short Sale.

Some owners who have their home on the market as a short sale do not want to sell it to just anyone. They have a particular buyer in mind, for instance a co-worker, tenant or relative. (Because banks require short sales to be “arms length, they usually will not approve a short sale to a relative of the seller - if they know that the buyer is a relative). It is unfortunaly somewhat common for short sale sellers and their agents to list the property, put it in the MLS ( with no sign, lock box or marketing) and then turn down all requests for showings. They just let the property accumulate Days On the Market. Eventually they submit a short sale package to the bank along with the one and only offer that they have been able to generate during their “marketing period”. Wait, wait, don’t tell me…the offer is from Uncle Bob!

Is this legal? Not if the agent and / or seller are giving the bank false information. That would be fraud.

What if you want to buy one of these homes? Unfortunately, in my opinion, there’s not much to do about the problem if you are a buyer. There's some hope because all banks order an appraisal or independent broker price opinion (BPO) to determine market value when considering the short sale offer. Short sale offers will be rejected, or countered, by the bank’s negotiator if they think the purchase price is too low. Some of these homes end up as bank owned homes (also known as REO properties).

Many of the banks, and loan servicers, are looking for solutions to irregularities in the short sale process but it’s a complex situation. Your best option is to work with an experienced local agent to help you determine which homes are actually available for purchase, how much to offer, etc. If you are looking for property in the areas around Sacramento and up into the foohills of El Dorado County, let me know how I can help. Otherwise, happy hunting! There are plenty of terrific opportunities and homes that are actually for sale.

Is this home available? Active short sale versus active short sale contingent...

When houses show as Available in the multiple listing service, they are sometimes not actually available for new offers. Sorry but this is true. If a property is a "short sale" there are various possible status designations.

In my MLS (covering the greater Sacramento area, El Dorado Hills, Folsom and way beyond) the designation "Active Short Sale"" indicates that it is a short sale and the seller has not yet accepted an offer. Even when they do, the sale will still be contingent upon approval but one or both lien holders (who have mortgages on the house now). The designation "Active Short Sale Contingency" indicates that it is a short sale and the seller has already accepted an offer. Since all short sales are contingent upon approval by the existing lien holders, (existing bank) the multiple listing service uses the designation of "Active Short Sale Contingency" instead of "Pending" or "in escrow". These listings are not actually available. They already have an accepted offer that's been accepted by the seller.

Even if the listing agent receives an offer that's higher than the one they currently have submitted to the lien holder, they will usually not submit it (90% of the time) because it confuses the lien holders. I hope that I have explained this adequately. What this means is that buyers should be looking at houses that are either designated as "Active" or "Active Short Sale". Listings that are designated as "Active" are more of a certain purchase because they only require approval by the seller and not the existing lien holder(s). If you have questions, let me know. You can also visit my website at AskPamela.com for more information about short sales and bank owned homes.

Is this a good time to build your dream home in El Dorado Hills?

If your personal economy is such that you can buy a parcel of land and build, this is a great time to do it. Values for vacant lots are way down and construction costs are lower too. There are some gorgeous lots for sale in Serrano and at The Promontory.

This property pictured here is 19 Powers Drive. It's located in the gated community of Kalithea at The Promontory. This lot listed as a short sale and has preliminary plans for a home that will take advantage of the views over Folsom and Folsom Lake.

A link to my home video shwing an available lot that's located in Kalithea at The Promontory is located in the ride sidebar of this page. Check it out! Or you can cut and past the following URL.

http://homeonthetube.com/listingdetails.aspx?PropertyID=1288&PropertyAvailabilityType=SALE