The unfortunate reality about short sales is that there are no guarantees. Lenders are not required to approve a short sale. So as a buyer, you'll need to make offers that are realistic and attractive to the bank.
California recently passed a law designed to stop lenders from foreclosing on a home while entertaining a short sale or loan modification. Unfortunately, some banks have already found a work-around. They have "redefined" the short sale process and now say the sale date will not be stopped until a short sale has actually been approved. This way, they can take as long as they want "considering offers" and during that time they can decide to foreclose on the home. So much for the anti dual tracking law! Banks can and will continue to "dual track" now that they have redefined the short sale process.
What's frustrating for homeowners and real estate agents is that banks treat short sales as a business decision. They aren't at all concerned with the persons and families involved. Banks are simply trying to reduce the bank's losses. Skilled agents are usually successful in demonstrating the benefits the lender will gain from approving a short sale, but if the "bank/investor" who owns the loan decides that a foreclosure is the most profitable course of action, that is most likely what will occur. It is important, then, that the house is properly priced to reflect the current market. If the price is less than market value, your odds for gaining short sale approval will shrink. And now that banks are forging ahead with foreclosure sales, it is more important than ever to package your offer for success.
This all sounds simple enough but the big unknown is in determining a home's "market value". There are websites that will assign a value, but they don't know the condition of the house or even the type of sale. And the special tools real estate agents use to create CMA values?... in the hands of an unskilled agent, the CMA value can be even worse than the websites! To determine market value, Agents must consider the home's specific location, condition, size and amenities and then to that, the agent must factor in risk based on the type of sale. This is definitely no time for amateurs.
Realty World All Stars professionals have helped hundreds of homeowners successfully avoid foreclosure and buyers successfully acquire homes. While we cannot guarantee success every time, we can increase the odds for a positive outcome by providing competent and professional service. To learn more, visit our company website or "ask an expert".
California recently passed a law designed to stop lenders from foreclosing on a home while entertaining a short sale or loan modification. Unfortunately, some banks have already found a work-around. They have "redefined" the short sale process and now say the sale date will not be stopped until a short sale has actually been approved. This way, they can take as long as they want "considering offers" and during that time they can decide to foreclose on the home. So much for the anti dual tracking law! Banks can and will continue to "dual track" now that they have redefined the short sale process.
What's frustrating for homeowners and real estate agents is that banks treat short sales as a business decision. They aren't at all concerned with the persons and families involved. Banks are simply trying to reduce the bank's losses. Skilled agents are usually successful in demonstrating the benefits the lender will gain from approving a short sale, but if the "bank/investor" who owns the loan decides that a foreclosure is the most profitable course of action, that is most likely what will occur. It is important, then, that the house is properly priced to reflect the current market. If the price is less than market value, your odds for gaining short sale approval will shrink. And now that banks are forging ahead with foreclosure sales, it is more important than ever to package your offer for success.
This all sounds simple enough but the big unknown is in determining a home's "market value". There are websites that will assign a value, but they don't know the condition of the house or even the type of sale. And the special tools real estate agents use to create CMA values?... in the hands of an unskilled agent, the CMA value can be even worse than the websites! To determine market value, Agents must consider the home's specific location, condition, size and amenities and then to that, the agent must factor in risk based on the type of sale. This is definitely no time for amateurs.
Realty World All Stars professionals have helped hundreds of homeowners successfully avoid foreclosure and buyers successfully acquire homes. While we cannot guarantee success every time, we can increase the odds for a positive outcome by providing competent and professional service. To learn more, visit our company website or "ask an expert".
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