Myrtle Beach Real Estate by Mirela

SHORT SALES... Looking at the Bright Side...

 

I've been doing a lot of Short Sales for the past couple of years.  I've done short sales on and off through the years, before the term "short sale" had even been coined.  We used to call it "upside down mortgage".  It was an infrequent occurrence.  I was good at it because I really wanted to help my clients move out of their financial quagmire, so I was very persistent with the bank.  There was no "Loss Mitigation" at that time, or at least I wasn't aware of any such term. 

My, how things have changed in the past few years!  Out of 15 transactions waiting to close within my agency, only three are normal transactions; the rest are all short sales and REO's.

Mirela Monte, Your Myrtle Beach Short Sale Specialist *(Unfortunately!)

 

As much as I bemoan the length of time and the hoops I go through to do short sales transactions, I am taking this opportunity to say, "THANK GOODNESS FOR SHORT SALES!"

Why?

...Because it's a way to guide our sellers who have found themselves in dire situations  and may not know their options.

...Because it's a way for distressed property owners to avoid foreclosure or bankruptcy, and thus salvage their credit

...Because more homes are within reach for home buyers who have little money but have a lot of time and patience to wait out the lengthy short sale process

...Because while there is a frenzy for buying foreclosure where people compete in multiple offer situations for AS IS purchases, there is less competition for short sales where there is room for negotiation

...Because short sales offer opportunities not just for the buyers looking for a good deal, or sellers hoping for debt forgiveness, but also for realtors who truly want to help their clients and who are in it for the long haul. When the going gets tough, the tough gets going. Right?

...Because we've learned how to do another type of sale. And every key learning is a new marketable skill.

What do we have to lose? It takes time, sure....but eventually, it will bear fruit.  The more we sow, the more we reap.

 Perhaps this is a good time to add that ALL of my current escrows are with short sale buyers and sellers!

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Comment balloon 11 commentsMirela Monte • October 23 2009 11:07PM

Comments

I nice way to put short sales into the light of a positive perspective. 

Posted by Janna Scharf, Coeur d'Alene Idaho Real Estate Expert (Keller Williams Realty Coeur d'Alene) almost 11 years ago

I'm sorry -- I'm still not completely convinced.. or maybe it is that I have had too many buyers who have gotten burned even though they were so patient.  I really haven't seen a lot of negotiation ...

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) almost 11 years ago

Thanks for the reminder.  We don't do them just for the money, we help people who need the help and usually appreciate it. Good perspective.

Posted by Dan Tabit (Keller Williams Bellevue) almost 11 years ago

Thanks for the insight. I thought an upside down mortgage was an ARM.

Posted by Larry Bergstrom, CNE, CRS, GRI (Crescent Realty, Inc. Spanaway, WA. ) almost 11 years ago

I agree with you.  In Canada the short sale phenomenon has not quite caught on.  It is a decent way to help those in distress.  We do have a number of power of sale properties in our City.  Very sad.  A past client of mine had to pack up and leave her beautiful 2 storey home because her husband lost his job. It was her pride and joy.  I wish I would have known her troubles prior so I could have worked with her and the lending institution and avoid a straight forclosure.

Posted by Carrie-Lynn Macleod (Remo Valente Real Estate (1990) Limited) almost 11 years ago

My latest short sale went like this:

A two hour conversation late in the evening with a lead who came to me referred by another past client.  She cried.  She was desperately trying to sell her property.  It had been listed with other agents for over a year.  She was not able to make her mortgage payments anymore. 

That was about a month ago.  Within that time I was able to produce a sale AND negotiate with loss mitigation.  We're closing in three weeks.  BTW, there were two loans in place and a missing $100K. 

It CAN be done.  Being organized with the paperwork, having everything properly executed and submitted and having it all on pdf, so you can e-mail it again and again.  Be polite.  Be nice.  Be accommodating.  Have patience.  Be relentless.  Be persistent.  Focus!  See it closed in your imagination. 

I detest short sales as much as the next Realtor.  I love people!  I do it because someone needs to be good at it; people's lives are at stake here.  We're at a critical juncture here.  Pretending we're not here will not change anything.  Get good at short sales; it's the only way we could dig our way out of this mess...

 

Posted by Mirela Monte, Myrtle Beach Real Estate (Buyers' Choice Realty) almost 11 years ago

Mirela, these are all excellent points that Picita makes, on my wish list for future short sales is a way to streamline the process. Buyers want to buy sellers want to seller...and the painful length of time is just too much.

Posted by Steve Loynd, 800-926-5653, White Mountains NH ( Alpine Lakes Real Estate Inc., ) almost 11 years ago

I agree with you!  It is a necessary path and the best case path for most distressed homeowners.  And here''s the other point....banks are gearing up to lean towards more short sales than REOs....watch what happens next year!  Sometimes, we just gotta grin and bear it! 

Posted by Dawn Harmon, San Diego Realtor, Broker/Owner (Pacific Homes & Estates) almost 11 years ago

I think they used to call them upside mortgages along with "short pay". There was loss mitigation departments, but finding the way to communicate wiith them was difficult. You usually needed to be transfered from customer service. And they were rare, usually you walked into this situation where the homeowner has been scammed by an investor claiming to give them a loan where they used a person leaving the country and put them on title, pulled out all the equity out of the place, gave the homeowner and credit buyer some money and walked away.

Posted by Satar Naghshineh (Satar - Amiri Property and Financial Services Corp.) almost 11 years ago

Mirela

Thanks for the re-blog.

It may take a long time and a lot of work, but we have learned HOW to do it better, and we KNOW what constitutes a complete package to streamline the process.

And like you, my involvement in short sales is fueled by a sincere desire to help my sellers and my buyers. We may have had it too easy a few years ago...so I look at this as another opportunity to prove our worth to our clients.

 

Posted by Pacita Dimacali, Alameda/Contra Costa Counties CA (Alain Pinel) almost 11 years ago

Hello Mirela, we've been slow to coming to the same realization -- we are here to help people, and it is up to us to skillfully navigate these more difficult BUT doable transactions.  We are helping people quite often with Short Sales now.  Thanks!  John

Posted by Alexander- Slocum, Realty Team- Vancouver WA Real Estate (Premiere Property Group, LLC - Vancouver Washington) almost 11 years ago

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