Clarksville - Ft. Campbell Area Information: October 2010

Why Did They Foreclose on the Short Sale I Was Buying?

Check out this great post from Elizabeth Weintraub - Author of The Short Sale Savior. Although each market is local, the basics are the same. 

why did they foreclose on the short sale I was buyingPricing a short sale is an art. Although I try to explain to sellers how I arrived at the suggested sales price, most of them don't really care. As one seller put it, she's just the Monopoly piece. Because it's the bank that decides on the short sale price. The bank makes the decision based on the BPO. So logic would have it that if a Sacramento short sale agent would examine the comparable sales the same way a BPO agent does it, the acceptable sales price should be near the list price.

Earlier in the year, a list price could be under market and buyers would bid it up. In our Autumn real estate market, after the first-time home buyer tax credit has vanished, my list prices are inching up because offers are coming in lower. It's a always a juggling game, trying to stay one step ahead of the market in Sacramento. Sellers may now need to leave a little bit of room for negotiation.

I mention this because buyer's agents often help their buyers figure out how much to offer. Because buyers don't know. Some of them know beyond a shadow of a doubt that if a home is listed at $300,000, the seller will take $200,000 and so will the bank. It's a buyer's market. Everything is in foreclosure or it's a short sale. However, they are wrong. And here is how they find out they are wrong:

The home goes to foreclosure just when the buyer was expecting a short sale approval letter.

If the listing agent tells you how much the bank will take -- because either the agent figured it out or the bank shared its BPO results -- and a buyer decides to pluck some other number from thin air, that short sale is probably not going to close.

Sometimes, buyer's agents are astounded when my seller counters their offer. They can't believe it. Even though I try to explain that our goal is to close escrow, the words seem to fall on deaf ears. Maybe their real estate practice is based on throwing offers at the bank to see if any of them stick but my practice is based on closing escrow. Call me silly, but it just seems to make financial sense to close.

If your short sale goes to foreclosure, it's probably because your offer was too low and unacceptable. I hate to say this, but you weren't buying a short sale. You were waiting for foreclosure. There is a difference.

Photo: Big Stock Photo

sacramento short sale agent

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Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout Sacramento. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.

The Short Sale Savior, by Elizabeth Weintraub, available through bookstores everywhere and at Amazon.com.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.

The views expressed herein are Weintraub's personal views and do not reflect the views of Lyon Real Estate.

Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice. It could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

 

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Think Clarksville * Think Fort Campbell * Think Real Estate * Think Roland

Roland Woodworth

Licensed in both Tennessee & Kentucky. Please don't keep me a secret, if you know anyone looking to BUY or SELL, Please send me their contact informtion and give them my name and number.

View my website at Clarksville Home Information or Fort Campbell Housing

 Roland Woodworth is a member of NAR's Short Sales & Foreclosure Resource

 

Roland Woodworth, REALTOR ® Q Realty

Call: 931-320-9411

E-Fax: 866-596-2172

  

Clarksville TN Homes For Sale, Clarksville TN - Roland Woodworth, REALTOR

I specialize in helping families relocate to and from the Clarksville, TN and Oak Grove, KY - Fort Campbell, KY and the surrounding areas. I have the tools to market your Home For Sale including New Construction, Short Sales, Foreclosures, Distressed Properties. I'm a US Army Verteran still serving the Clarksville, TN amd Ft Campbell, KY area. Looking to sell your home,give me a call at 931-320-9411

TN Lic # 273649  -  KY Lic # 57120

Q Realty

1812 Memorial Circle. Clarksville, TN 37043

Each Office is Independently Owned & Operated

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Comment balloon 3 commentsRoland Woodworth • October 23 2010 11:26AM
Why Did They Foreclose on the Short Sale I Was Buying?
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