Thread: Will doing a short sale drive away potential buyers??

Well ma'am, you're partly right: Some buyers don't want to wait the months it takes to close for whatever reason. However, serious buyers (the ones with briefcases full of money), don't mind. If your house is listed with a Realtor, keep in mind price solves most problems but you can't lower your price because the bank won't accept that due to the appraisal they got. I know, it's like a Catch 22, you're damned if you do and your damned if you don't. But then again, if your bank agreed to this shortsale, that's great! I'd say, give it a little longer, and the bank will probably decide to lower the asking price, but don't count on it okay?

Please keep in mind only SOME buyers are turned off by the waiting time and not ALL banks are slow. Give it some more time and see what the bank says. In my experience, the Latino buyers aren't and have never been in a hurry. If they make an offer, they'll wait it out, they are the most patient market I know and they're hardly ever dissappointed when their offer isn't accepted.

Good luck.

CM

Thanks for all the info... With our bank, we cant even apply for a short sale until we get a buyer.. We thought we could possibly apply for the short sale now, which is what we really wanted to do but then they told us we have to wait, so we dont even know if they are going to approve it once we have a buyer.. That is the most frustrating part. I am hoping it will be approved though. We are current on our house payments, but we hardly have any money in our savings so I would think that would make a difference, I hope anyway....

I see. Well, at least they're talking to you. Well, keep it on the market a little longer of course. What's your contracted length? 10 months? 6 months? Since your bank hasn't agreed to this shortsale yet, then miss, you can price it for whatever you feel is fair just so you can get out from under it for the most part. If your house is priced right, you should have buyers coming out of the woodwork by now. Since you don't, it's probably a little overpriced. When foreclosures for example go on the MLS system, there are multiple offers from buyers within hours of listing it. I'm simply trying to say, if you're $50k upside-down (it's not a lot really with the current climate today), and you're making your payments, can you wait a year or so for the market to come out of the trough? Because right now, it sounds like you're pricing it too high.

Banks have what they call a shortsale packet you'll need to look at if you want to go this route. It's a lot of paperwork that they'll review before they can even consider you a "hardship" case and agree to a shortsale.

Ya see, you and your husband agreed on the promisory note to payback the loan. Now, you're saying you can't pay back the loan: they're going to want to know why. Medical bills out of control? One of the deed holders is disabled and unable to work? They're going to want to know specifics with this packet. THEN after several weeks, they MAY say "ok".

CM

Thanks again for all of the info... I didnt think that we could price the house under the appraised value... Wouldnt the bank definitely not approve a short sale if we try to sell it for less than the appraised price?? That is what my husband seems to think, but maybe hes wrong?

Anyway, as for the hardship, it seems like so many people now are having to do short sales, not just those who are in debt.. In your experience are you finding that even now banks arent approving short sales unless you have serious financial issues?? We are not in debt, we are up to date on bills, and doing ok.. We dont have a ton of money or anything but my husband is good at budgeting the money we do have... So what would your suggestion be? Do we need to start being late on our house payments? I just am not sure what we need to do here...

Thanks again for all of your help with this.

Jennifer

I forgot to mention that we cant wait to sell the house, I wish, but my husband is in the military and he is due to transfer out next summer...

[COLOR=black][FONT=Verdana]Ma'am, you're correct: You can't list the house (IFFFF the bank approves you for a shortsale), LESSSS than what the appraised value is. That's one. Two: The shortsales packet I told you about is all about your financials. I don't mean to sound cynical but: "One of us is out of work", isn't going to work. Uh...."My husband's the bread winner and he

I appreciate all of the info... Our realtor really doesnt seem to know if they would approve the short sale or not. I think you are right that we probably need to talk with a real estate attorney. I didnt think of this idea before.. I have told my husband that I think it might be best for us to just rent out our house but he is pretty much against that idea.. There just arent many options for us right now....

Sure you could rent it out. Look, speak with your Realtor, they'll locate qualified renters for you. The prospective renters must fill out an application that consists of five different background checks. Megan's Law, residency, employment verification, so don't worry about getting losers in there. The prospective renters pay for the application too. Your Realtor should come over, take measurements, input all that info into the computer and get it out there. Renting out your home, once your husband returns to his duty, is an option, you'll just need a place to go, unless you have a mother-daughter type home.

Your Realtor wouldn't know what your bank is going to do with regard to your personal/family financial situation/short sale.

CM

We have been involved in a few short sales( we are real estate agents in Ohio ) , but by no means are we experts. Our experience is that in regards to approving a short sale, every bank is a little different and some move quick while others do not. For the most part though, most banks will not approve a short sale if the loan is not delinquent. We are by no means suggesting you not pay, but you should contact a real estate attorney and discuss a deed in lieu of foreclosure or other options that he/she would recommend. Also, it does help to have a professional negotiator work on your behalf in conjuction with your agent if you plan to do a short sale. Many negotiators will submit a purchase agreement up front, which is transferrable to another buyer, with them as the buyers so that they can at least move forward with the short sale process because as you mentioned, without a buyer, you cannot move forward. This is a legitimate tactic used by short sale negotiators.