The Sacramento Bee's real estate reporter, Jim Wasserman, checks in with me every now and then to ask questions about the market, and lately we've been discussing short sales. I mean, who hasn't been talking about short sales, especially in Sacramento where short sales make up more than half of the real estate market. I really like Mr. Wasserman. He's smart, witty and a darned good journalist. My husband is a journalist; my late mother was a journalist; my late father-in-law was a journalist; I've had my fair share of newspaper assignments, so I'm intimately familiar with the occupation.
Mr. Wasserman wrote a very entertaining and truthful article yesterday about Sacramento short sales. Of course, most of the comments that follow that article are political, with conservatives bashing liberals and vice versa. But Mr. Wasserman also included a link, with my assistance, to the short sale path. It accurately describes the steps to a short sale. But it doesn't ease the pain many buyers feel when they are trying to buy a short sale.
For some buyers, short sales are indeed a nightmare. It's even worse if their agents don't understand what's going on. I get a lot of calls from buyers throughout the country who feel that there is something they should be able to do to speed up the process. They ask if they can call the bank or speak with a supervisor at the bank. I understand. I empathize. I know first-hand the frustration. However, there is little that a buyer can do. The buyer, as Mr. Wasserman so aptly notes, is just along for the roller-coaster ride.
But, let's face it, if the buyer isn't on the ride when it comes to a stop, the ride was for naught. Because typically that short sale process will start over. It's important to keep buyers engaged in the transaction and informed. A Sacramento short sale agent, like myself, will be successful if that agent develops systems to involve the buyer. On my website, buyers can follow the progress of their short sale. I give them Sacramento Short Sale Listing Status.
Every time something happens on a file, bam, I post it. When a negotiator is assigned, the buyer is informed. When a BPO is performed, it's noted. If I feel that we are close to short sale approval, I indicate that. If the lender requests updated financials from the seller, the buyer knows about it. If a short sale buyer is searching my listings and sees a short sale is still on the market after six months and rightfully wonders what is wrong the home, that buyer can look at the entire history and know exactly what happened. The length of that listing is probably due to a buyer who flaked. Fortunately, that situation is becoming less likely to happen these days as short sales are getting approved much faster this year than over the past 4 or 5 years. Still, a buyer has gotta have patience and nerves of steel. It's a bumpy ride for most.
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Certified HAFA Specialist
My Sacramento Real Estate Listings
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 the four-county Sacramento area. 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 at Amazon.com.
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I agree, buyers should know what's going on. I closed a short sale last month, the contract went to the bank last September. If those buyers are going to wait they deserve an update.
I agree, Katherine. Not only that, but a buyer who waits 11 months to close a short sale deserves a plaque with their name on it and a gold star. Hey. There's a concept! I think I'll start handing out plaques to any buyer who has to wait longer than 60 days for approval. It will say: I Survived a Sacramento Short Sale! We should probably throw them a party and break a few bottles of champagne.
Elizabeth,
Very true. Buyers and their Realtor need to be oriented in advance to the struggles and delays associated with short sales.
We also keep a detailed log of all events and communications. We also considered making status reports available to all parties. However, we don't avail the log to the buyer's side because often the seller causes delays by being slow or non-responsive to critical requests. We want to shield our client, the seller, from the spotlight.
Hi ya, Dave: Well, I haven't really encountered pokey sellers. My sellers typically want to get approval as quickly as possible and put the whole ordeal behind themselves. So, they are very cooperative. But maybe I'm just lucky to work with such motivated sellers.
So, you have quite a bit of journalism in your blood. That's why you are such a great writer. Realtors or agents who provide open communication throughout the process are few and far between.
Elizabeth, I don't think it's luck. You probably do a much better job of screening sellers than I do. That could be another blog topic - the importance of working with short sale sellers who are totally engaged in the process.
I had to re-read your post. I got so caught up in the comments on the article. All that bickering.
The short sale process is indeed complicated and from a lot of what I read and my limited experience all the lenders have different procedures, different requirements for approval and a buyer also needs an experienced short sale agent to guide them through and hold their hands during the "waiting" process or the buyer usually walks because their non experienced agent hasn't explained the approval process.
Elizabeth,
Exceptional blog post. Excellent sourse of information for the buyers and for the agents. I have "suggested" it. Thanks.
Keeping buyers informed throughout the short sale process is absolutley critical to keeping the buyers on board. No information from the listing agent leaves them thinking of the worst and itching to bail on the transaction.
Great posst, Elizabeth! But when a buyer pulls out of a short sale, it's usually an alternative to pulling out is or her own hair. It isn't the buyers who are "flaking" but the lenders and their negotiators who, after all this time, haven't figured out how to process these transactions in a reasonable amount of time.
Hi Elizabeth,
Perspective is everything. Some Buyers panic after awhile, some were disingenuous in the first place. A Buyer must be properly counseled about the process they wish ( voluntarily) to be engaged in. There is nothing easy or guaranteed in any of this, though with diligence, you clearly demonstrate that this process helps homeowners and the RIGHT Buyers alike. Many of the issues arise because the Buyer's agent either doesn't know the process or explains it poorly. I really appreciated the detailed listing status report. Excellent and well thought out.
On a more personal note, you and I share a mutual friend in common. Myrl Jeffcoat. What an amazing women and she thinks very highly of you. As do I, now that I am more acquainted with you and your writing. I appreciate your professionalism and the clarity of your posts. I have decided that it would be my loss by not subscribing to you so I just did that.
It is my belief with this post, that was recommended to me from Pat Kennedy, should be a featured post that others may learn from your experience as well as perspective. I will hit that Suggest Button shortly. Well done Elizabeth. I extend my hand in friendship to a very talented professional.
Elizabeth, I totally agree with our buyer being along for the ride only - a roller coaster ride is right!