This is an important blog for buyers and buyer agents to read.
I represnted buyers for a short sale property in the 4th. quarter of 2008. This was a first for me. The listing agent finally told me to stop calling her. The buyers started to call her then. Try to make a buyer understand you are doing your level best for them when communication stops!
Five months later we are told the bank will accept the offer if the buyers ante up $5000 more to make the 2nd mortgage holder go away. My buyers said "no" and walked away.
I was involved in a Tragic Journey from a Short Sale to Foreclosure. I represented the buyer and another agent represented the seller. The seller had an Attorney, who had a successful track record of negotiating short sales.
The history: We have written at least eight or ten FHA Offers, without getting any accepted. We lost out to Conventional Loan buyers, Cash Buyers and buyers who had large down payments. Finally May 2009 we received the "good news"...." Congratulations your offer was accepted". Then the journey began.
We continued searching, writing offers with no results. The communications between agents, principals were way too many to mention here. They all started with "any news?" and all ended with "just be patient".
Fast forward to Friday the Thirteenth, August 2010. Another one of those questions from the buyer. The Seller's Agent broke the news "... I was about to call you..."
How did this happen? The Sellers accepted the offer, the paperwork submitted at least four to five times during a period of nine months. Then a Short Sale Negotiator assigned from the Lender, attorney back and forth communication and the Result: the lender wanted $20,000.00 from the seller. The lender would not accept $10,000.00 from seller and $10,000.00 from buyer. They wanted it all from the seller.
May 2010 Foreclosure postponed, June 2010 Foreclosure postponed again. End of July the sellers go away for a few days. They return home, the locks have been changed, their belonging rummaged thru....
Who is the winner here? No one wins; all are tragically in the short end of this transaction. The sellers have no home, they have their credit ruined. The buyers waited a year and a half, now are totally devastated and will rent until the wounds will heal.
The lenders have to spend money for upkeep, security, electricity, water, taxes, insurance, vandalism etc. The cost around $2000.00 per month and ironically it takes about three to four months to sell a home. Once in Escrow another month to two months before the buyer receives the keys and the financial loss to the bank: approximately $10,000.00.
The agents worked for free for about a year and a half. Tell me what you think of this turn of events on an unhappy story. Do we need to overhaul how decisions are made? What do we need to prevent this from happening again?
If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at firstname.lastname@example.org or visit one of my websites at http://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of My commission to Local Animal Rescue Organizations.
Marge Draper, REALTOR
KELLER WILLIAMS REALTY MENLO PARK