you are correct and in fact, in our area, listing a property as a short sale can actually slow down showings because buyers do not want the hassle.  PLUS, and here is an interesting concept, just because a property is listed as a short sale DOES NOT mean it is a bargain sale.  It just means the seller owes more than he/she can sell it for.  I would much rather see my buyers make a good deal on a property with an owner who has equity and the ability to make the decisions.

Good Luck.  It is going to be awhile before this gets sorted out.

Shelly

Laura, you hit a bees hive with me about the topic of real estate agents who mislead the consumer with their knowledge in short sales.   You ask how can they do this?  The real estate agents that are doing this are hurting for money, thinking that short sales is a quick rich avenue because services are needed and/or don't understand the consequences of their lack to skills that will cost the bank, the seller and the buyer, not to mention attorney time and the agent's time.  

It's not about getting certification, it's about knowing how the whole process works, the forms, the contacts, the followup.  

Interestingly, most agents look at the default as a short sale when they should evaluate it as a short sale symptom!  That being, can this individual/seller/owner renegotiate the loan under new terms and/or rates?  Is it possible for the property to be financed under the Signature Loan?  Could this property be refinanced under FHA?  Those are the avenues that need to be pursued before putting a property on the market as a short sale.  Even then, you must know how to handle the whole ball of wax in order for it to work.  

Were you aware that only 30% of all short sales actually close.  The low ratio is because the package was incomplete, or the agent didn't communicate on the phone everyday.

This stuff has been written over and over but to read it does not make one experienced.  Is it right that someone who says "Oh, yes!  I've done short sales before" and no one questions for the addresses, the paperwork (if allowed), and for references from the seller, attorney's, agents or buyers.  Clearly the answer is "no".  Will this avenue of deception to the public continue?  Yes, because there is no policing or guidelines and even those guidelines, of that of underwriting were abused, the negative amortization programs that were and are still out there, that have caused this mess.  There is blame everywhere and a lot of fingerpointing.  

My grandfather always said to "stay in the areas of expertise where we could benefit the consumer the most."  

Laura,  I don't touch short sales but my broker does, and he says banks (which seem mostly to be out of state) are a pain in the rear.  You typically have to use their forms and they may decide on a offer that may actually have been withdrawn weeks earlier, or could even be for way less money; who knows?

Our state is now requiring a special form be signed by the Bank, or whoever is "in charge", it takes effect July 1, 2008.  You must have the form signed with the Listing agreement.  Maybe it will help curb some of the confusion?

They also are requiring a special "yellow" (paper color) now with info for people who's properties are in Foreclosure.  I think this is directed at all of the Foreclosure "scams" going on around the country?

Foreclosures and Short Sales are a very small portion of the sales here in Idaho,  and I never did like leftovers growing up.  My younger brother always got those.  I am sticking to the main course!

Laura, Short sale can be a very long process but it is a win win situation for the seller,buyer the bank and a great things for us as a broker. Due to so many foreclosures out there, the banks hire new poeple to help them handle the cases, those new employees are new without training and most of them don't know what they doing. You will always need to go to a superviser. On a short sale the seller walking out with nothing, but able to avoide foreclosure on his credit, and will be able to phurchase a house in the future. As regarding to buyers they need to be hold tight because they getting a great deal. This is a great field to get in and going forward, its the best way to make money for us as a brokers.

Me as a broker in Staten Island, Ny and my partner In Brooklyn , Ny has been doing it for a few years and also helping other agents nationwide to share a "piece of the cake":) You can always visit www.freeforeclosurestop.com for more info or just contact me at 718-273-7777 with any questions.

To make a Looooong story Short!

No "shorts" for me,it gets to involve personally in many ways and dealing with the lenders is another matter...

Straight up foreclosures for me or new homes with Hugh builder's discounts 12,20 ,50k + works for me.

http://www.MickeyRealEsate.com

Laura,

I am with Josh. Short sales can be a great thing for sellers, banks, us and buyers as well. I am a former banker so I do have a heads up on how banks think (which may not be how I think now!!!)

NOt every homeowner who is upside down is a good short sale candidate. Before they decide to sell short make sure that they have spoken to the bank, visited credit counseling (the free one!).

One thing that may not be a secret to realtors today, banks don't have a clue!!!! the short sale process is new to them as well and that is why things change daily........ BE informed!!! Call the bank often with new information. Make sure you are present at appraisal, inspections.... the banks are using those third parties to make sure that it is a legitimate short sale............

Remember one thing, a buyer can get a great deal on a short sale but must show patience and flexibility......

Good luck! Short sales are not that bad!!!

To all Realtors: one very experienced realtor (35+ years) told me the other day, as long as the foreclosure rate is going up, the market won't recover! What can we do to slow the foreclosure rate: stop them before they get to that level - help sellers sell short!  

I have sucessfully completed 1 transaction with a help of seasoned attorney on short sale. I won't mind doing another one as long as I have her (attorney) with me. Its a long exhausting process and till the day of settlement we don't know for sure if it will happen. I had a situation on another short sale the second back out and wanted the seller to sign a payment plan for next 5 year a day before settlement. For my buyer I educated them what is a short sale if they are interested I will let them submit an offer and wait. In Virginia we have a special addendum for short sale contracts that all the contingencies are commenced after the bank approval (as many trust). It all depends up on who is going to negotiate.