Short Sales - Real Estate ???

[hubris 1]

BTW- Stone Harbor & Avalon have taken big hits from their peak, but I hear what you are trying to say.

Only in the number of buyers, not price........

[Ace1st]

The difference in Potential and Approved Short Sales are simply with a Potential Short sale the bank has not yet agreed to allow the short sale to take place. Certain financial criteria must be met by the seller to qualify as a short sale.The conditions may be right for the short sale but the bank has yet to approve it.

With the Approved Short Sale the bank has reviewd the owners financial situation and agrees that the short sale is acceptable and they have agreed to the terms of the short sale.

Im most cases the Approved Short Sale is a smoother transaction.

[Ace1st]

JIM....
Are you working with an agent?

[Sea Draggin]

JIM....
Are you working with an agent?

Yes, I have a coldwell banker agent.

[Dads Dream]

Jim...
Its not the properties that have a problem. The system is the problem.

In my market a huge percentage of our sales are short sales. The problem lies in the process of contracting, having contracts accepted in a reasonable amount of time, and closing in a reasonable amount of time. Some of mine have taken up 4+ weeks to get an acceptance and 12-16 weeks or more to bring to closing. Thats ridiculous!

The banks have so many to deal with they are just not in a hurry to bring to fruition. Not to mention in some cases there are situations where the banks have mortgage insurance on the loans and theyd rather collect on that than to hurry up and move the product.

Another problem is with lending, Right now the credit market is the main reason our market is so stale. They are just making it to hard to borrow money.

But to answer your question, the issue with short sales are due to the system. The process just takes to long and so many unknowns come to light during prior to the closing. If youre not in a big hurry and have the patience of JOBE, short sales are a great product and may save you alot of money.

The best advice I can give you is to make sure that the agent you are working with is experienced with short sales and knows the ins and outs of this process! Good luck!

~
Ace has it right.....I work on the banking side of things.....and lending for us has changed a bunch..... For the banks, the playing field has leveled in that we all pretty much have the SAME lending products (loans are all the same) and the price of mortgage money is with 1/8th to 1/4 pt (.25%) of any other bank.
Banking is not an easy place to work. Short sales are difficult to process (when you're the banker trying to do the mortgage for a new buyer (of the short sale). Mostly its the timing factor to which Ace1st referred.....we have to lock & relock rates for borrowers, and in the process the borrowers documents expire (beyond mort companies reqs.)...
Bottomline- in this market, if you can tolerate the long closing time to get into a short sale......go for it. If you've got to make a quick move/buy....then you're patience will be maxed out.

[Dads Dream]

BTW- Stone Harbor & Avalon have taken big hits from their peak, but I hear what you are trying to say.

Say, I grew up spending summers down on CMP (Cape May Point)

What's happened there? 10% downward valuations? Or greater?

[000's]

Ace has it.I have have done a bunch of them. Alot of good deals around with out the head ache of shorts sales and foreclousers.

[Tricia Lynn]

There is legislation up for approval in which they are trying to make it mandatory for banks to approve or deny offers within 20 days, that's 4 business weeks, which is plenty of time. I hear it is looking like it is going to go thru. Good news for buyers and U.S. tax payers too

[giantfan]

Contractors think they are doctors. Worse yet, Doctors want to be contractors. .

LMAO.... aint that the truth.