Sunday, September 20, 2009

You can't handle the truth..or short sales!


Mary Ellen Podmolik called me earlier this week to talk about real estate 'short-sales for' today's Chicago Tribune Business section. Are they getting done? In my world, mostly no. I did have one successful short sale purchase this year. But the other few I wrote on, my buyers walked away during the process in favor of non-distressed properties. Most of my clients that view short-sales with me, just don't offer on them after seeing the properties and learning about the process.


Here's my quote from today's column:


"Most people really aren't in a situation where they can deal with the uncertainty," said Zhao's real estate agent, Eric Rojas at Prudential Rubloff. "Even when you explain that it's not accepted until the bank accepts it and you build these safeguards into the contract, people are dropping out, left and right. These sales would get done, but people just can't wait."


2 comments:

The Oracle of Hyde Park said...

I am a first timer and placed an offer on a short-sale and found the process to be frustrating. The listing agent wasn't very helpful and I felt like they weren't even sending my offer to the bank. They just kept telling me to increase my offer and they didn't tell me if the bank has countered with where they stand. The process was one sided so I decided to walk away. I don't get it, the home has been listed for almost 500 days. Is there a way to send my offer to the bank directly??

Eric Rojas said...

Welcome to the club man. I suggest you deal with a non-distressed property if you can't hang in there.

In your case, the home may have already had several offers on it. Did you ask that? Also, the listing agent does not have to tell you anything about the other offers. They do have to tell another agent if there are other offers on the property however (that's if they call you back).

Its possible there are many more offers in front of you. If the house is decent and the asking price truly low, you were probably behind a few others.

You will not be able to "send an offer directly to the bank". They hired a brokerage to sell the home. The seller of the short sale (with the broker's help) probably hired a professional attorney and or short sale negotiater that pretty much does this for a living.

The best way to get a short sale is to be the first decent offer with little contingencies and showing good money down.

After that, it depends on who is handeling the process. If you tire easily, I'd buy a house from a non distressed seller. Much easier and predictable process. Plus, they have legal disclosure for the property etc...