In Jan. 2012 I took on a listing destine to be foreclosed in 30-days. Nonetheless, I was up for the challenge. So after meeting with the homeowners and explaining my strategies, I listed it in our local MLS. Seeing how the home was well cared for and had no obvious repairs needed, I was optimistic that I would have an offer soon. I ordered a Title Search and addressed all the “hiccups” that matched their names and ss#.
In spite of my efforts to strategically market alongside the REO and equity properties, it never fails… I’ll get “that” call where an agent tells me that I’m over-priced… Generally I start off at the lower end of market value to compete with the equity listings, of course I may also be higher than some of the REOs. REOs are properties that have already gone through the foreclosure process and are now owned by the bank; Short Sale listing have not. I don’t know… maybe it’s just me, but that call really grabs at me!
Now I deal a lot with investors and agents who work with investors. That a listing is “overpriced” is generally a tactic that’s used to prepare me for a lower, sometimes much lower offer coming my way. That’s ok… remember it’s seller who has to accept it, and the lender who has to approve it. My objective is to prevent the foreclosure. Short on time and our backs were against the wall, we considered three (3) offers. After analyzing which was the better of them, we submitted it to the lender for approval.
With a longer than expected wait for lender to approve, our buyer walked; so did our second. Now working on a third, much lower offer, the lender is requesting new docs for information that should’ve been brought up during the initial Title search! Nonetheless, we comply an send in an affidavit to clear the matter. With all requested docs submitted, we again try to postpone the Trustee sale date for the 3rd time. Our request goes unanswered. Calling daily, sometimes twice a day since we’re just a week away from foreclosure, I still have no approval.
Painting by RuncieTatnall
Unfortunately the property went to foreclosure in June 2012. Upset that the lender didn’t approve the offer, or at least postpone the sale date, I rechecked the comps in the area. By our final price adjustment I was no longer competing with the equity listings, just the REOs. The homeowners had anticipated the foreclosure and had made other living arrangements long before we listed. It’s just like I said at the onset, “some you win, and some you lose”.
Short Sales can be very challenging and complex to say the least, even when you have a qualified team members on your side. In spite of the turn out with this listing, Short Sales are still the best remedy for distressed homeowners. More and more lenders are buying into this as an option to foreclosure. I also believe that investors play a major role in purchasing these types of properties, replacing homeowners with renters, which will in turn began to improve our economy. Although this one was tough, it’s nothing compared to the “Probate Short Sales” that I work with. That one another time…