St George Short Sale Letter
The below is a response I emailed a buyer I was helping prior to his coming into town. He had asked a few questions and I answer this one regarding the Short Sales 'game' or process for the St George area and the odds I projected, of one of them going through- his questions is in green. His coming into town time- September 6, 2009.
As to this question…
Also, perhaps a question you can answer by email in the meantime: What would you estimate the prospects of being able to successfully close a short sale prior to Jan. 1, 2010 if an offer is made during that first week of September?
In order to have a decent chance of insuring an offer on a Short Sale gets accepted by Jan. 1 of next year, I would think they are about 25% or less. Those odds would go up if I had some indications from the realtors history of working with that particular bank OR as if they already have a Loss Mitigator assigned with a BPO or appraisal conducted AND that we’d be the “acting” first offer on the property. Then I’d say the odds would be more towards 30 to 40%. If we got two offers on two ideal Short Sale situations, then I’d say your odds could go up to 60%. It would take at least 3 offers on 3 different properties for me to give you better than 80% chance of something breaking for you and if we were not working with Bank of America.
The odds also go up if there is a pre-approved price by the bank. This is probably the most likely favored position that one offer could yield better than a 60 to 70% of going through by first of next year.
Just as an example, I have one buyer that we have put 5 offers on Short Sales and it has been two months and NOTHING has broke for us. There was one that was about to and my client withdrew his offer on it because it was not one of his favorite. Now, instead of continuing the Short Sale “game” he doesn’t as much anymore because he’s realized a REO bank foreclosure or regular sale that competes, drifts through before the timing on a short sale comes through for him. He is also located in town here.
But the Short Sale game is one of those that can deplete your nerves emotionally on one of the biggest financial decisions of one’s life and then to NEVER, almost as it were, hear back on your offers. This Short Sale business can get downright discouraging. So, I warn you about it ahead of time, but will do whatever you, of course, guide us to do.
Just realize that more often than not there are more than one offer on the place the bank can consider, some that come after yours and as such you’d need the expert or favored position with your realtor helping position you there. After knowing I’m good at that, and still I’ve come away disappointed in how they deplete my buyers experience and efforts as well as my own ability to provide an income based off a transaction for the work I do.
I hope this helps.
I highly look forward to being of service to you!
~Brian
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