Have you tried to purchase a home that was disclosed as a short sale? The laws vary by state, but I think we all can agree that something needs to change. The process is extremely cumbersome and time consuming for the listing agent, and they better document who they talked to etc. If the buyer has time on their hands and is patient, the buyer may find a really good deal. However, most buyers do not have the time that is required as it can take 60 days or longer from the inital offer to close on the property. Do not expect an immediate response from the lender. Hopefully, the bank’s loss litgation department and foreclosure department talk to one another as there could be miscommunication and the home could end up in foreclosure with a deal on the table as this happened to a colleague of mine. With all the issues in the short sale process, it causes buyer’s agents to discuss these listings with their clients and talk about the pitfalls. As a result, a large percentage of agents will avoid these homes from being shown, which in turn cost the lender more money because of less competition. If the lender is forecloses on the home, the mortage lender incurrs additional holding expenses including taxes, property maintenance, vandalism, etc. Would the lender not be better off then, if they did not incur these additional expenses? Personally, as a REALTOR, I would rather write an offer on a home that the bank has already foreclosed on and is marketing as it is a much smoother transaction.
