Biting The Bullet-Short Sales

You know what? Honestly, I really hate short sales. Since they sort of arrived on the scene around here they’ve been a massive pain in the posterior if you ask me. I’m not alone in that estimation either. A short sale (a oximoron if ever there was one) occurs when a homeowner who owes more on his/her loans (and often loans) and puts their home on the market attempting to persuade their lender(s) into forgiving some of their debt to allow the place to be sold. In the past 5 years or so it’s sort of appeared to me that lenders seem to want to torture buyers and agents who are attempting to actually buy one of these places.

Buying a short sale is not for the faint of heart…and certainly not for somebody in a hurry either! They take forever and often it takes months just to get a lender to look at the file. One agent I know spent months just trying to get a return phone call from the relevant person inside a bank holding a loan. I’m not talking about actually negotiating the short sale, months just getting somebody to make an initial contact with a decision maker. Another agent I know was told any offers on a short sale with one particular lender had to be faxed (and faxed only!) to one particular fax machine…that was always busy. Busy at 2:00AM, Busy for 3 weeks straight. If you’re looking for personal growth in the area of patience, try negotiating a short sale. It’s a land where most rules of common sense get redefined.

Historically, short sales are those listings you see that have been on the market forever. the ones with the 3 digit days on market numbers. Not in 2012 though! In yet another sign of the turning of the real estate market so far this year, short sales are not only ratifying early in their listing life…they’re getting multiple offers! You really have no idea how amazing that is to me! Multiple offers on a short sale? Unheard of! The irony is that, now, people are waiting in line…to wait in line again! We’ll now compete for the opportunity to wait for the lenders to take 4 months to look at the file.

I don’t know…I hear that they’re actually getting better at this. I hope that’s true! Keep an eye on the escrows of these short sales. It’s going to be interesting to see how long they take to matriculate in 2012. You have to be trained like we are to work these Short Sales because there are allot of agents who do not know what they are doing so you have to be on the look out when placing an offer on a Short Sale for a client because you don't want to be involved with an agent who is not a CDPE " A Certified Distressed Property Expert" The Barringer Team is a certified CDPE.