I have talked with many real estate agents and one of the biggest gripes I hear is that the short sale process is brutal. The lost paperwork, time spent on the phones, apathy at the banks, the complaints are legion.
But, there is a flip side to this. The process being so bad may be good for the housing market as a whole.
There are many people looking to sell their home that is not in the short sale process. They are trying to get fair market value for their investment.
Nearly every home buyer is coming into the process looking for a foreclosure or a short sale. If you are anywhere close to the industry that is the common wisdom. The only thing stopping them from buying these properties is that foreclosures typically are in rough shape and short sales take forever.
If the buyer has anytime constraints he or she would leave these options on the table and instead buy a home in the traditional marketplace.
This is the only thing keeping home prices reasonable and traditional sales still flowing.
The hassle of the short sale process is keeping homes from being dumped on the market by sellers and getting home buyers to look at regular homes in the market.
If the process for short sales becomes too easy, we are going to see many more homes than we expect hit the market.
- The home owner will forgo the process of reworking their mortgage, they are finding out it is dinging their credit profile already, and just dump the house.
- The agents will recommend the short sale process because that is what the buyers are already looking for and they will not be stuck on the phone forever.
- And the traditional home selling market will wither on the vine as there will be no buyers except those looking for a very specific property or situation.
Remember that the law of unintended consequences is very powerful.
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This will only drag out the market downturn. A simpler process will not mean folks will decide to walk away. Homeowners will walk away when it is in their best interest. There aren’t any homeowners continuing to pay their mortgage because doing a short sale is onerous.
Get the foreclosures and short sales out on the market so it can correct and move ahead. Slowing this process delays the eventual recovery.
There really are different values for short sales. Tne brutal process of approval drives away buyers and drives down the value of the property.
Buyers bail on short sales all of the time. Often times it's the agents fault for not managing expectations. Keeping the buyer informed and letting them know how difficult the process is can really help. If you're not using an online short sale software to update your buyers every step of the way then you're probably blowing it with some short sale buyers.
Chris
SaveYourShortSale.com
Thanks for sharing this information which i was looking for since many days and finally got it from this site.
Nice blog on How to Short Sale.
Keep sharing more & more…..
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