Comments on: Is The Short Sale Dead? http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/ Internet Money! Money On The Internet! Thu, 18 Mar 2010 19:36:49 -0500 http://wordpress.org/?v=2.9.2 hourly 1 By: Darryl Baskin http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-929 Darryl Baskin Sun, 04 May 2008 02:50:35 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-929 You're right! It is the slow reaction and the overall inept clerks in the "workout" departments who are not authorized nor able to make reasonable decisions by processing the information on the file with a goal of increasing the lender's bottom line. It is frustrating to explain perfect logic for a short-sale decision and feel like you are talking to a brick. Narrow minded, bureaucratic and no strategy is an applicable summary of most lender short-sale programs. It's not surprising an attempt to perform a short sale and save a lender from further loss is met with a tooth and nail fight for a pittance of a commission. We are talking about brilliant people here! You’re right! It is the slow reaction and the overall inept clerks in the “workout” departments who are not authorized nor able to make reasonable decisions by processing the information on the file with a goal of increasing the lender’s bottom line. It is frustrating to explain perfect logic for a short-sale decision and feel like you are talking to a brick. Narrow minded, bureaucratic and no strategy is an applicable summary of most lender short-sale programs. It’s not surprising an attempt to perform a short sale and save a lender from further loss is met with a tooth and nail fight for a pittance of a commission. We are talking about brilliant people here!

]]> By: Barry Cunningham http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-808 Barry Cunningham Wed, 23 Apr 2008 05:21:18 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-808 Ernst..wow..70 Sellers??? Un real..what you described was the exact reason we sounded the bell on short sales! Ernst..wow..70 Sellers??? Un real..what you described was the exact reason we sounded the bell on short sales!

]]> By: Ernst Urbainczyk http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-807 Ernst Urbainczyk Wed, 23 Apr 2008 02:27:39 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-807 This is what I wrote to 70 of my sellers, 45 are in short sale postion. This system needs to be fixed it because prices are dropping like a rock. I case you have not seen this article in today online news, it addresses a huge problem we are currently facing in real estate and is a cause of lower sales and dropping real estate prices. Reuters - Realtors complain short-sale process is failing Tue Apr 22, 2008 3:13pm Click here for the story The fact is, the banks are reacting extremely slow to the short sale offers and therefore causing; 1. Buyers walking away from the contract 2. Agent doesn’t want to sell short sales because they never know if they get the contract done. 3. Reduces re-sales 4. Causes prices to drop 5. Causes people being foreclosed on 6. Cause an increase in bank owned properties and properties being offered at lower prices. 7. Cause none distressed properties having to compete against bank owned properties. 8. Causes lower sales and stresses the economy 9. Reduced profit to the banks and shareholders 10. Increase the losses to the investors who are holding the mortgage paper. I can go on and on with this subject but hopefully the article is a wakeup call to the banks and the government to immediately seek corrective actions because it is a downward spiral caused by the horrendous responses or lack of responses to this problem. I can see the banks issues but we are in this situation long enough, some corrective actions should have been taken by now. We have lenders who are in 2nd, 3rd and 4th mortgage position saying we are not accepting anything less than the money owed when in fact they will get zero when the property is going in foreclosure and causing the seller to eventfully go in foreclosure. Nobody wins when the property is being foreclosed on, and taking this kind of ignorant approach is inexcusable. This short sale system is so broken; it is what the sub prime problem was to mortgage financing, but only in reverse. This is what I wrote to 70 of my sellers, 45 are in short sale postion. This system needs to be fixed it because prices are dropping like a rock.

I case you have not seen this article in today online news, it addresses a huge problem we are currently facing in real estate and is a cause of lower sales and dropping real estate prices.

Reuters – Realtors complain short-sale process is failing
Tue Apr 22, 2008 3:13pm Click here for the story

The fact is, the banks are reacting extremely slow to the short sale offers and therefore causing;

1. Buyers walking away from the contract
2. Agent doesn’t want to sell short sales because they never know if they get the contract done.
3. Reduces re-sales
4. Causes prices to drop
5. Causes people being foreclosed on
6. Cause an increase in bank owned properties and properties being offered at lower prices.
7. Cause none distressed properties having to compete against bank owned properties.
8. Causes lower sales and stresses the economy
9. Reduced profit to the banks and shareholders
10. Increase the losses to the investors who are holding the mortgage paper.

I can go on and on with this subject but hopefully the article is a wakeup call to the banks and the government to immediately seek corrective actions because it is a downward spiral caused by the horrendous responses or lack of responses to this problem. I can see the banks issues but we are in this situation long enough, some corrective actions should have been taken by now. We have lenders who are in 2nd, 3rd and 4th mortgage position saying we are not accepting anything less than the money owed when in fact they will get zero when the property is going in foreclosure and causing the seller to eventfully go in foreclosure. Nobody wins when the property is being foreclosed on, and taking this kind of ignorant approach is inexcusable. This short sale system is so broken; it is what the sub prime problem was to mortgage financing, but only in reverse.

]]> By: Barry Cunningham http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-801 Barry Cunningham Tue, 22 Apr 2008 04:14:41 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-801 Dustin...email me directly Dustin…email me directly

]]> By: Dustin Miller http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-800 Dustin Miller Tue, 22 Apr 2008 03:29:30 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-800 Let me know what you have in mind... Let me know what you have in mind…

]]> By: Barry Cunningham http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-799 Barry Cunningham Tue, 22 Apr 2008 02:49:35 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-799 Lucilene: Last year was a bit premature. They ahdn't taken back so much inventory as of then..now it's an avalanche and the deals are there for the taking. However as Dustin says below...agents till need to know what to do as many Sellers will need an agent's professional assistance. Dustin if you have buyers..let me know! We can help you out. Julio: Asset managers we find only want to deal direct in as much with bulk buyers otherwise they want you to go through their agents. Ton of inventory out there! Lucilene: Last year was a bit premature. They ahdn’t taken back so much inventory as of then..now it’s an avalanche and the deals are there for the taking. However as Dustin says below…agents till need to know what to do as many Sellers will need an agent’s professional assistance.

Dustin if you have buyers..let me know! We can help you out.

Julio: Asset managers we find only want to deal direct in as much with bulk buyers otherwise they want you to go through their agents.

Ton of inventory out there!

]]> By: Dustin Miller http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-798 Dustin Miller Tue, 22 Apr 2008 02:44:28 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-798 Barry...I hear ya. I am working more on the listing side of the Short Sale market anyway. Unfortunately I don't see my buyers getting enough of a benefit when purchasing a short sale to really work it. I mean, they tell me to forget about it most of the time after I explain the deal-e-o. Well maybe you guys can put together a REO class :-) Over the last few that I helped some of my buyers buy I've sent the inspection report and gotten every dime of that report reduced for my buyer no questions asked. It's been almost too easy!! Thanks Barry…I hear ya. I am working more on the listing side of the Short Sale market anyway. Unfortunately I don’t see my buyers getting enough of a benefit when purchasing a short sale to really work it. I mean, they tell me to forget about it most of the time after I explain the deal-e-o.

Well maybe you guys can put together a REO class :-)

Over the last few that I helped some of my buyers buy I’ve sent the inspection report and gotten every dime of that report reduced for my buyer no questions asked. It’s been almost too easy!!

Thanks

]]> By: Julio Olin http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-797 Julio Olin Tue, 22 Apr 2008 02:32:47 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-797 Would bank asset managers deal directly with buyers on their REO's? Or do they always choose to use agents? Getting that extra fat (3-6%) cut off the deal seems like a great idea if this is what the banks seem to be doing now instead of short sales. Any advice Barry? Would bank asset managers deal directly with buyers on their REO’s? Or do they always choose to use agents? Getting that extra fat (3-6%) cut off the deal seems like a great idea if this is what the banks seem to be doing now instead of short sales. Any advice Barry?

]]> By: Barry Cunningham http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-796 Barry Cunningham Tue, 22 Apr 2008 02:18:50 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-796 Dustin..it's appearing that way unfortunately. In fact some banks we are now speaking to are actually telling us to wait and that they can cut a better deal afterwards. The market evolves..and like Julio said above, there will always be a time when it will be appropriate...but for now..it seems the real deals are in the REO sector..gotta keep it real! Dustin..it’s appearing that way unfortunately. In fact some banks we are now speaking to are actually telling us to wait and that they can cut a better deal afterwards.

The market evolves..and like Julio said above, there will always be a time when it will be appropriate…but for now..it seems the real deals are in the REO sector..gotta keep it real!

]]> By: Julio Olin http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-795 Julio Olin Tue, 22 Apr 2008 01:22:44 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-795 Even though I feel that short sales won't completely go away, i do think that this is the market for REO's to prosper. MOST of the good homes in our area (on the MLS) are in fact REO's. Prime example: a home in my neighborhood (FMV of $400k) was being sold and the owners were in distress due to having another home out of state (job relocation) and couldnt afford paying for both. Well the agent found an interested buyer and attempted to do a short sale as the buyer was only approved for $325k (mortgage payoff was around $370k). The bank took too long, buyer walked, property foreclosed, and voila, REO. Well what's amazing is that just a few days ago I see people moving into the home and I walked over to greet and welcome them to the neighborhood (about 3 months after it became an REO), and through small talk I was able to find out that they bought the home for $255k AND the bank (Countrywide) paid ALL of their closing costs..........needless to say, there goes the comps in this neighborhood. The REO strikes again! Even though I feel that short sales won’t completely go away, i do think that this is the market for REO’s to prosper. MOST of the good homes in our area (on the MLS) are in fact REO’s.

Prime example: a home in my neighborhood (FMV of $400k) was being sold and the owners were in distress due to having another home out of state (job relocation) and couldnt afford paying for both. Well the agent found an interested buyer and attempted to do a short sale as the buyer was only approved for $325k (mortgage payoff was around $370k). The bank took too long, buyer walked, property foreclosed, and voila, REO. Well what’s amazing is that just a few days ago I see people moving into the home and I walked over to greet and welcome them to the neighborhood (about 3 months after it became an REO), and through small talk I was able to find out that they bought the home for $255k AND the bank (Countrywide) paid ALL of their closing costs……….needless to say, there goes the comps in this neighborhood.

The REO strikes again!

]]> By: Dustin Miller http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-794 Dustin Miller Tue, 22 Apr 2008 00:11:46 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-794 Barry Barry...You can't be saying short sales are dead....not YOU!! You are the short sale guys!! It almost hurts me to hear that from you, really. Please say it's a joke!! Barry Barry…You can’t be saying short sales are dead….not YOU!!

You are the short sale guys!! It almost hurts me to hear that from you, really.

Please say it’s a joke!!

]]> By: Real Estate Radio USA Episode 103 | Real Estate Radio USA http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-792 Real Estate Radio USA Episode 103 | Real Estate Radio USA Mon, 21 Apr 2008 22:45:15 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-792 [...] had a full show today starting out with a recent Barry C blog post titled, “Is The Short Sale Dead?“. We had a couple of interviews including Terri Lussier from The Brick Ranch and Matthew [...] [...] had a full show today starting out with a recent Barry C blog post titled, “Is The Short Sale Dead?“. We had a couple of interviews including Terri Lussier from The Brick Ranch and Matthew [...]

]]> By: Lucilene Ivory http://www.realestateradiousa.com/2008/04/21/is-the-short-sale-dead/comment-page-1/#comment-791 Lucilene Ivory Mon, 21 Apr 2008 22:24:06 +0000 http://www.realestateradiousa.com/blog/2008/04/21/is-the-short-sale-dead/#comment-791 Hey guys, Needless to say I love you both. Great job keeping it real. Quick comment: Do you remember last year when i was in your seminar and i said that I thought buying REOs were better than try and do a short sale? Are you trying to say I was right all along? ;) Just showing my boys some love, Lucilene Ivory. 3057764146 AAA Mortgage & Investment Group, Inc. Hey guys,
Needless to say I love you both. Great job keeping it real.
Quick comment:
Do you remember last year when i was in your seminar and i said that I thought
buying REOs were better than try and do a short sale? Are you trying to say I was right all along? ;)

Just showing my boys some love,

Lucilene Ivory.
3057764146
AAA Mortgage & Investment Group, Inc.

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