Wednesday, November 12, 2008

Another Day, Another Short Sale (or 5 or 6)...

I suppose one of the reasons I am such a prolific blogger is that I spend so much time on hold working on short sales. I am currently negotiating six of them (with a total of 10 loans between them), so several times a week I spend a couple hours listening to hold music trying to get through to Loss Mitigation. I try to be as productive as possible, and often times in the absense of emails to respond to, listings to look up, home evaluations to do, Trulia Questions to answer, news to read, and websites to play on, I do a brain dump into my blog. It is almost theraputic.

Last week, I closed another one of my short sale listings after a very tumultuous time on the market. We were in contract a total of 3 times with 3 different buyers before one stuck. I had approval from both lenders within a couple weeks of receiving our first offer...I had tirelessly communicated with the buyer's agent while I was working with the lenders. The day I received written acceptance, the buyer's agent told me they had gone into contract on another property. ARRGGHH!

So, back on the market we went. A week or so later we had another offer...of course the approvals I had received from the lenders had an expiration date that presented an unrealistic time line for this new buyer, so I worked hard to get an extension. After about 2 weeks of waiting, that buyer got restless...2 days after that buyer cancelled, I received new approvals from the lenders. Again, ARRGGHH! I felt really bad for the sellers, who were trying to determine when to move...what a crazy up and down ride for them!

Back on the market...within another two weeks we had yet another offer. Again I had to go back to the drawing board with the lenders. Two weeks later I had written approval from the lenders - but this time they wanted the buyer to close escrow in 13 days (that's really fast!). The buyer threatened to walk away, saying that there was not enough time to close the escrow. After wrangling with the lenders, they agreed to extend the close of escrow...it finally closed escrow on November 7th.

One of the most frustrating elements in short sale transactions for me as a listing agent (aside from countless hours on hold), is the fact that you never really know if the buyer for your property is coming or going. The longest short sale negotiation I have done to date was 5.5 months, and that buyer really wanted the house and patiently waited throughout the entire process, while I have worked on others that were approved in just a couple weeks where they buyer skipped out. One thing I have learned to prep my sellers for is the fact that getting and KEEPING a qualified buyer is one of the most critical pieces in the transaction...and it is a piece we have zero control over. Luckily, I have worked with some wonderful clients who understand this and appreciate my efforts.

Well anyway, in the time it has taken me to write this post, I learned that one of my short sales was just recommended for approval!...woohoo!!!

1 comment:

Nate said...

Erin, Keep up the good work. Short sales can be trying for the most patient.

Thanks for being involved with SAR and continuing education !

N8