Short sales

I have been involved in quite a few short sales in the last couple of years. From the buyers side it seems to be more of a wait and see and then renegotiate process. The buyer is the one that dictates the situation and what they are willing to pay. I represented one buyer where we kept lowering our price every time they came back with an approval until we were happy. This process took almost 9 months but my buyer purchased the property for $150,000 less than our initial offer. Banks know that the jumbo market is still dropping and they want to make the deal.
I just closed a Short sale where the offer was accepted but the buyers appraisal came in $60,000 below our contract price. The buyers expected the transaction to
fall apart but I knew that lenders want sold properties not BOM (Back On the Market) properties. I worked with Indy Mac and submitted the appraisal and the holdup wasn’t more than a week or so. The lender accepted the appraisal and we closed at appraised value saving the buyers $60,000 in the process.
Some short sales do have “Happy Endings”.
I am working with B of A at the moment on two short sales and they have a platform called Equator that is more than challenging. No one to speak to, only emails that must go through the platform and not through normal email. It seems like the BofA left hand has no idea what their right hand is doing. While I have an accepted offer over asking, I get emails to lower the sales price 10-15%. Go figure.
I understand that while almost all short sales take more time, the outcome usually benefits the buyer who gets a great price for sticking in there and pushing. Having a great agent that understands short sales and allowing them to negotiate for you will get you the best price. There is nothing worse than paying to much for a property. Loans can be redone, permits can be applied for, and family can be quit claimed from title but overpaying in this market won’t be fixed for quite some time.
Work with a sharp Broker/negotiator, someone that has your best interest at heart.

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