Archive for April, 2008

How long until Sacramento Short Sales become more successfull?

We dread it.  Yet We still do it… Showing the shortsale listing to clients, and then explaining reason why they should “Just Walk Away”…

Like the web site that offers a ”customized” plan to homeowners in default, I find myself many times giving the same advice to buyers in this market to just ignore most short sales. We still go look, to compare pricing and make sure we are not missing the deal of a lifetime, on the home of their dreams, but most of the time, we just look…

If the home is perfect for the buyer, we do write, but we always coach our buyers to keep looking. Most of the time, after weeks of no communication from the listing agent and/or no word form the bank, a comparable home will come on the market that we can actually close on.

In our Sacramento area, Less than five percent of short sales that go pending are actually closing and transferring ownership.  Most of the nine transactions I have closed successfully have taken over 90 days to complete; one took 7 months.

We have been successful on the buyers side only twice, the listings I have closed are usually closed with the third, fourth, fifth buyer contract.

We just lost another listing to the foreclosure sale, it was with Wells Fargo, who for OVER FOUR MONTHS complained that we had never faxed in our sellers package, that they had technical problems, that the fax machine was broken, that the original fax number was no longer a good number (even though our transmission reports indicated ok)… we heard that the account manager assigned had quit and had to re-start the entire process, not once but twice! We heard that the sale date had been extended and that the bpo had finally been ordered…

Then one day an agent called to say she had been assigned the property and wanted our lock box off.  During this five month process, we had seven offers submitted to the bank with completed packages, pre-approval letters, our own BPO, and showing reports… hours upon hours of work…

We tell this and other horror stories of the fifteen or twenty listings we have lost to the forclosure sale at the courthouse steps to  our buyers and usually  get them to concede that it would be far more appealing to get into a transaction on a listing where we could actually plan on closing.

However, in the cases where buyers have parents who live on the same street, or where kids can walk to an important school or buyers who grew up next door and played in the backyard as a child, we will write a strong offer on a shortsale; as long as the listing agent has had shortsale experience or is using a professional  negotiator, that they have a full package submitted to the lender and as long as there is only one bank involed (not a fist and a second) and it is not Wells Fargo!

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