my appologies for the misinterpretation. i was under the impression taht you were not allowed to do a short sale because you said "i would do it, but my principal broker would not allow it." i did not know that you were talking about doing the deal for free, i thought you were talking about a short sale.

not trying to start a flame war but....many people like to throw out thier time in the business. that is a great thing to be able to say (20 years). the part about being in the business 20 years is commendable but does not have merrits to anything that we were talking about. in fact you have been licenced long before i was and that goes for many people on the board. tiger woods was in the golf business and blew the competition out of the water in his first few years so time in any business is not imo as important as the results that one produces.


you said--->"It also does not benenfit the market because distressed properties in the neighborhood will bring down the value of someone else's property that is not in foreclosure."

i have noticed that the homes that dont get sold short go on as reo's for less money than they could have gotten short. so the values are hurt more by not getting sold short. ---short is the lesser of two evils---

Good Luck and thanks for your post. I hear that buyers are now staying away from short sales because they take so long to process. I refer the people that call me to companies that specialize in this, because they are the ones that talk to these banks everyday and know exactly who to talk to in order to get that file closed. I just had a referral close that took 4 months to go through escrow. It was a simple home in a simple subdivision. There are agents in my office that have short sale listings that are just sitting there with valid accepted offers on them that can't go anywhere until the bank approves them. Most of the buyers are walking away and cancelling, most are just waiting for the house to go back to the bank and waiting for the REO listing to come on the market. Its easier and faster.

Any Realtor in this market who says that the real estate brokerage is not the only one profiting from a short sale, needs to take a closer look at what is really going on.

my appologies for the misinterpretation. i was under the impression taht you were not allowed to do a short sale because you said "i would do it, but my principal broker would not allow it." i did not know that you were talking about doing the deal for free, i thought you were talking about a short sale.

not trying to start a flame war but....many people like to throw out thier time in the business. that is a great thing to be able to say (20 years). the part about being in the business 20 years is commendable but does not have merrits to anything that we were talking about. in fact you have been licenced long before i was and that goes for many people on the board. tiger woods was in the golf business and blew the competition out of the water in his first few years so time in any business is not imo as important as the results that one produces.


you said--->"It also does not benenfit the market because distressed properties in the neighborhood will bring down the value of someone else's property that is not in foreclosure."

i have noticed that the homes that dont get sold short go on as reo's for less money than they could have gotten short. so the values are hurt more by not getting sold short. ---short is the lesser of two evils--- [/quote]


Actually, I was not trying to brag about how much experience I have had. I'm really not one to toot my own horn. But when you say that I am misinformed, I thought it was my duty to inform you that I have been in this business a long time and I am hardly misinformed.

As far as the values in the neighborhood. Have you done a BPO? I'm sure you have. Have you reported how many short sales and REO properties are in the neighborhood? The reason why they need this information is so they can accept a short sale offer. When you have new construction in the neighborhood, do you not agree that the new brings down the value of the homes in the neighborhood, simply because the market would rather have new than old? The same applies to short sales and foreclosures. The market would rather buy the same home that is offered for less money, than a home that is the same home for more money. Make sense? So in order to keep in competition with the short sales and REOs, a regular homeowner must lower his price to be competitive in the market.

What we need to do is clear inventory as fast as possible and get it sold.The more short sales that fall through the more REO's at reduced rates.

The problem alot of times is not the bank it's fraudulent overinflated interior bpo's comparing them to regular sales on the market.Hello people if it doesn't sell short it will become and REO so that is the most accurate comp to compare to.

Short sales not going through in the end does cost the bank more in the long run.The problem is there are buyers now but many can't qualify with the tighter lending guidelines.

I haven't been in the business long only about 5 years.I don't look at time I look at constantly learning and going to the next level.

I take martial arts and there are others that have been doing it for 30 years.The fact is if they don't use it they will lose it.

I intentionally no longer work short sales because fo the work involved.Use to a few years ago they well not well known.Now everyone is trying to do a short sale.

Doing a short sale can benefit the homeowners if you know how to negotiate properly with the bank.

I'm not sure how it can benefit the homeowner. First it ruins their credit. Second, the bank won't allow them to receive any money from the transaction. The only way a homeowner can benefit from a short sale is that they get to stay in the home rent free for several months.

Still, the only folks that benefit monetarily from a short sale is the Realtor and possibly the attorneys and maybe the appraisers in some small way.

The buyers are now steering clear of short sales because they take too long and sometimes they don't even happen. Buyers would rather wait for the REO to come back on the market. At least thats the way it is in our market.

unfortunatley Suzee i strongly disagree with you

it benefits the homeowner becasue they dont have a forclosure
it benefits the bank because the chances of the reo selling 6 months from today at a higher price than teh shortsale is below minimal from the cases that i have personally been involved with
it benefits the neighbor because the home will probably sell for a higher price in a shortsale preserving the property values in teh community...

remember if the property sits for 9 months and sells as an reo it will sell for less than it can sell for right now..

how can that not benefit the homeowner, bank, community, economy, property values.....please explain to me

I repeat. The only one who makes any money on a short sale is the realtor, the attorneys, the appraiser and maybe the home inspector in some small way and the title company. It will not benefit the bank because the bank is taking less than what is owed. It will not benefit the homeowner because if the short sale goes thru they are not allowed to collect any money, it won't benefit the community, the economy or property values for obvious reasons.

Don't take this so personally. Its a great way for us to make money and maybe get some future business or referrals. I don't do them anymore because it doesn't make me feel like I am helping anyone except to line my pocketbook, and I don't work that way. I may be broke but I do have my principles.

i totally disagree....short sale is a horrible way for an agent to try and make a living!!!!!!


let me ask a question.....this one question should end the debate


here is the question....what below method of selling will MITIGATE/REDUCE the loss for the bank?

1---a bank lets a house sell for less than what is owed and they sell right now

or

2---a bank has to sell the same house in 9 months as an reo

waht scenario has the highest potential to cost the bank the least ammount of loss?

number 1 or 2?

The benefit to a short sale is after you negotiate it properly you are DONE with the seller being able to move on and rebuild there lives.If you let it foreclose without a workout they can hound you with defeciency judgements and second mortgage holders usually sell off the bad debt to assett recovery companies which go after judgments and garnishments to collect the debt.

The short payoff counts as less of a hit on the credit score than a foreclosure.

If everyone really wants to learn the truth about credit look at www.lexingtonlaw.com

Wow you are way off now on what I had posted. I mearly stated that its the Realtor who profits from a short sale, not the homeowner or the bank.

I don't get why you are taking such offense to that.

In my previous statement I said that the seller is not allowed to walk away with any money. Of course, he or she gets to move on with their life, of course late payments aren't as bad as a foreclosure or a BK. You guys are going off in all directions.

My point is, that no one make any money in a short sale transaction except the Realtor, the Attorney, maybe the appraiser, the inspector and the title company. No one else makes a dime. Not the seller and not the bank.

I guess I don't really see why you are taking such issue with that. I mean, its a no brainer.

your exact words------------------>>>>>>>>It will not benefit the bank because the bank is taking less than what is owed. It will not benefit the homeowner because if the short sale goes thru they are not allowed to collect any money, it won't benefit the community, the economy or property values for obvious reasons.

i asked my question to show you that the bank does win by selling short. what is their other option? reo=loose time and money

When I was doing loss mit work, I explained it this way. The bank can lose a little money by agreeing to a short sale, or a modified loan agreement, or they can lose a LOT of money if the house goes to foreclosure.

There are benefits to the homeowner as well. Sure they don't get to walk away with money in their pocket...but sometimes even just being able to walk away with a burden lifted from them is a major relief to them.

Sometimes, "losing less" is a benefit...compared to "losing more."

Well the bank doesn't exactly win by selling short. There are still attorney's fees that start accruing, not to mention the per diem with regard to the mortgage insurance company. But thats not my point. My point was simply to say that the only person that benefits, ie., makes any money from the sale is the Realtor....and then maybe the attorneys, title company, appraiser and possibly the inspector. I hope I don't have to keep repeating myself. sheesh