SALT LAKE CITY SHORT SALES -THE TRUTH (from Virginia)!
Lately there has been a lot of talk around Salt Lake about the truth of doing Short Sales foreclosures, bank owned homes REOs, HUD Homes, Homesteps, and a number of other descriptions that really mean distressed property.
The talk revolves around should we as Realtors be involved, are they really a good deal for our clients, and why do they take so long?.
Today, we just want to talk about short sales and pre-foreclosures.
Buyers are interested because they want to save money on a home that maybe they had only thought they could afford. Sellers consider this option because a short sale is preferable credit wise to a foreclosure. Realtors look at short sales because they make up such a high percentage of Utah homes for sale.
It doesn't matter though, whether your on the making money side of the equation (home buyer), or the lose my shirt side ( house seller), Before you can do either one you must deal or should we say make your deal with the bank.
Thats the problem ! The Banks !!
Everyone has a story about how the bank has messed up the deal.
I have a story, about how the bank turned down an offer 3 months ago, (price too low) and let the home go into foreclosure. Yesterday the home was listed for less money than 4 of the offers we had presented.
So no one won. The seller now has a foreclosure on her record. The potential buyers missed an opportunity to buy an investment property that would require about $100,000 in fix up money. ( can you say JOBS). And, what makes this oft repeated scenario so ridiculous is the bank will lose even more money.
I was going to write about this experience and about the rules of doing a short sale today when I came across a much better article than I can ever write.
It's written by a Broker in Maryland & Virginia, Lenn Harley who is famous for her plain talk and for not pulling her punches. I love her perspective on all things Real Estate and her commitment to the truth as she sees it. I want to share her words with you.
RULES? WHAT RULES? Banks are non-learners. Banks do not know how to sell real estate. Therefore, they establish systems within their own 4 walls and require/demand that the rest of the world to abide by the rules without even knowing the rules. Only through experience can we anticipate the usual lack of communication, repeated delays, cancellations and general lack of professionalism that we, as real estate practitioners, have come to expect with contract management. To read the rest of Lenns article.
So there you have it, the truth about why short sales are driving us all crazy.
I hope this article and lenns candid explanation has been of help.
If your selling your home short in SLC you know the pitfalls, If your buying a short sale home in Salt Lake City, you know it will take time. If your an agent you should prepare your client. If your the lender... SHAPE UP!!!!!