Is Your Short Sale Going Long? It’s Complicated

Buying a short-sale home is taking just as long as ever, despite promises by banks and lenders to streamline the process. Many times, banks just don’t respond to offers.

If the property has more than one loan on it or a second lienholder, the process can get very sticky very quickly. Sellers have to submit documentation that they qualify for a short-sale.

However, banks make a habit of losing the paperwork. Often times, the bank does not communicate with the listing agent or the prospective buyer and the sale is left in limbo.

Listing agents are not excluded from the obstructionist tactics, either. Many times properties are listed as “short-sale approved” when no such condition exists.

Banks deal with short-sale properties on an individual basis only after an offer has been made. The prospective buyer needs to have patience when buying short-sale homes.

Buyers also need to question the mortgage holder, bank and real estate agent to make sure everything is as it should be.

The banks are balking at selling short-sales because they are hoping for a better offer and higher payment.

In addition, they are currently lobbying in order to be immune from Sarbanes / Oxley and holding back clearance (stalling economic recovery) is a tactic used to achieve their end.

They are also dealing with the backlog of foreclosures in the courts after the robo signing scandal with MERS. Do you think it’s complicated?

Appraisal Source is a New York based residential real estate appraisal firm. They can be of service to you if you need a home appraisal in Long Island or in New York City.

Here’s the original article…Short on Patience? Don’t Buy a Short Sale

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One Response to “Is Your Short Sale Going Long? It’s Complicated”

  1. Steve Morington Says:

    I recently bought a short sale, and the process was a complete nightmare! My advice is to be mentally prepared to deal with two types of people on a consistent basis for a very long haul…

    1) Complete idiots
    2) People that just don’t care
    …And any combination of the above two

    It’s true because the banks are hoping for a better offer, they drag their feet in every imaginable way, whether inadvertently cause they have complete morons working for them, or on purpose cause they just don’t give a damn about either of the parties involved in the buying/selling transaction.

    The experience tested my patience to the max. I’m happy it’s over with, and will probably never attempt the purchase of a short sale again!

    Reply

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