Thread: Short sales

The process will take atleast 2 months (under normal situations). Sometimes they have a pre-negotiated short sales where the decisions have already been made speeding the process along. Aside from that, brokers often don't know what they will get paid if anything. Ask about it.

In general, a short sale is for a buyer with PLENTY of time on their hands and a buyer who wouldn't get emotionally attached to any given house (very few people fall into this group).

Thanks for the info...makes me feel a little bit secure that I'm not being led astray.

Originally Posted by HomeBuyer55

My realtor has advised me not to look at any short sales at all because "the bank can draw the process out" longer than the 2 months I have to find a home. I've been reading that often the broker commission is reduced and was worried this was the reason I was being steered away from the short sales. Any thoughts?

Yes, it is true the short sale process can be very long, but you can find short sales that will not take long. Ask your agent to look for shortsales that is approved, this means that the bank has completed the process and is just waiting for a contract, or they had a contract fall a part. The bank will in most casses will speed the process up the closer they get to the foreclosure date. Have your agent talk to the selling agent and ask where he or she is in the short sale process.

I am sure that in many states it is a violation of ethics to not show property basied on the commission, besides in this market 5% is better than nothing.

Your Realtor is correct. I am not sure about your situation, but if you are on any sort of definitive time line short sales are usually not a wise choice.

Both statements are true. Short sales can drag and drag and in many cases the home ends up in foreclosure and you have to start all over again. As well as the Broker typically doesn't know what comissions are being paid unless it was pre-negotiated.

You may want to inquire about an REO vs. a short sale. Once the bank has listed the property with an agent, they're pretty much ready to make a deal and get the house off their books.

Good luck out there.

The bank is one problem with a short sale - they can be slow to respond and sometimes there are more than one bank to answer to...

Now the bank is an issue.... but the listing agent can be too... you have addressed the commission on the buyer's agent... but I doubt that has a lot to do with your REALTORs opinion... you need to buy now...

If a listing agent does not know how to work a short sale all your efforts could be for nothing..... no matter how hard you and your agent work....

There are many ways to sell a home, but signing away ownership in a manner that destroys credit,may not only embarrass the owner but his family too.

But "short sale" is a good option for the owners who can no longer keep mortagage
payments current,there are alternatives to bankruptcy or foreclosure proceedings.