21-Day Short Sales? Buzz vs Reality
Insider short sale circles where abuzz over the past few weeks about legislation that was supposed to force lenders to respond to short sale offers within 21 days.
As unlikely as this sounds – legislation being able to force a lender to respond within a certain time frame would seriously compromise the lender’s ability to process the huge volume of foreclosure deals and short sales that they have in their systems – common sense prevailed.
Now the blogs are full of apologies, and it seems that particularly agents and attorneys have to back paddle for jumping the gun and creating false hopes and expectations.
And that’s OK, because here is the big problem of short sales in the market place:
Because they take so long, it is extremely difficult to get qualified end buyers into these deals, who purchase the property to live in and get a new loan to close the deal.
These types of buyers are eager to buy, because they see the opportunity in this foreclosure market.
They also have to move quickly to lock in the current low interest rate.
Plus, for a move-in buyer the excitement of having found a home they like can wear off if you don’t get a response for several months.
All agents know that. So I guess the wishful thinking effect got the better of them (well at least the ones that were jumping the gun…)
My point here is that the services of an investor who puts in a cash offer on a short sale are still and will be for the foreseable future a very important and valuable service in the foreclosure marketplace.
Our cash offer enables the short sale to be negotiated. Then the end buyer can be put into the picture once our short sale is approved.
If you are an agent or know of agents who would like to learn how to get more short sales closed with zero time spent on negotiations AND get full commission, get in touch through the comments on this blog!
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Category: short sale
