Ah ha, and it’s true… Some will, some won’t, SO WHAT! The fact is, even when rigorously qualifying these properties and their occupants, not all Short Sales are easy passages. What holds the account for the national stats of Short Sale failures is that we haven’t as professionals:
1. Known the complexities and hoops we would have to account for as any other profession must metamorphose itself from an avalanche of change.
2. We dove in and placed little short sale agents Hawaii or emphasis on Buyer performance until after the Short Sale lender has in fact, approved the sale.
3. The Underwriters are mentality thinking, “That’s Backwards”!
There are other learning curves we have taken in the mix of these distressed sales. Junior lien holders, tax liens, HOA judgments and arrears make not be items that will be fully absorbed by the Short Sale lender and must be accounted for.
Another mindset infraction commonly plaguing these transaction is that Agents representing Buyers in these purchases seem to feel it part of their Fiduciary responsibility to keep their Buyer financially and attentively innocent until the Short Sale lender approves the sale. I am always dealing with this question in talks and Seminars I facilitate. I tell Agents with this consideration about the number of Buyers, Sellers and Agents out there that tell the stories we hear when the Short Sales sounded easy, and that were approved in a short amount of time. Stories that truly express the belief that Short Sale property can represent an extra value proposition over its REO competition. There is usually a live Seller that is disclosing what they know about the property, they’re usually maintaining the property and have not excavated the cabinetry and poured cement down the plumbing drains. There may be value there, enough to justify a Buyers investing four or five hundred dollars to perform an inspection, investigate the property and remove that contingency from the transaction early, even though there exists that risk that the sale may not go through.
Some of us may be rigorously staunch lead generators. If we are, we know to systemize and prioritize our leads to leverage our production percentages. Why would it be any different with regard to the waiting game of short sale process purgatory?
With millions or offers being submitted, depending on the size of the Bank or Servicer, incoming files are opened, processed through some system which favors priority and leverage. These must at many times be sifted out from hundreds of files by someone perhaps not as experienced in making the final dispositions on these sale files.
