Short Sales: An Unpredictable Science

See My Comments About The Market In Newsday – June 29, 2010
No matter what you hear or read on any website, please be aware that the road of remedy to avoid foreclosure, whether by short sales or by loan modification, is not predictable. Some short sales will be “easier” to settle than others. Conversely, some short sales will take a very long time and this may occur without even the best and most qualified professional knowing it.

If you are a home buyer, know this, you should prepare yourself for a long process but be ready to close when the time comes.

If you’re a seller who needs foreclosure avoidance assistance, it is imperative that you speak with a qualified attorney and a real estate agent who knows the process and has closed several short sales. That being said, even the pros can run into just a very poorly managed bank or loan servicing company or a very difficult investor during the process.

As someone who’s completed many short sale transactions, I know some “good” banks and I know some very poor ones. But I don’t know them all. I have contacts in the business that can provide me a heads up on certain deals and advise me as to how well or poorly things might go. But no one knows everything and therefore, the short sale process can be unpredictable.

Why am I writing this article?

I recently received some emails from a customer who was complaining to me about how long they’ve been in contract and about some other things which I won’t discuss here.

And I want to make this point clear.

We had a lengthy conversation months ago about how this short sale process could play out given the circumstances of the seller. And this customer knew this going in.

It’s been over 6 months and we are still waiting on the short sale to be approved.

Now of course I’ve had short sale transactions take longer than 6 months to go through, but nevertheless, as a buying customer, my heart goes out to them and the sellers involved. This is a tedious process and a tough business.

Short sales are not for the faint of heart.

But no pep talk will do the trick. To fully understand the frustration you might have to endure as a buyer and a seller can’t really be explained in an online article like this and nor can it be fully understood by having upfront conversations. However, I think an article like this, is long overdue on my website and others that discuss the topic.

If there’s one thing I want to be, with my home sellers and buyers of short sales, it’s honest. I want to honestly tell you (whomever is reading this) how hard it can be.

I recently visited with a doctor regarding a personal health matter regarding my wife and this doctor was very confident. The doctor told us everything would be fine. However, he of course went over the “X factors” as I like to refer to them and explained how there is a chance of this complication or side effect, etc.

This came from one of the top surgeons in the nation.

I don’t consider myself to the one of the top short sale experts in the nation by any stretch. I’m good. I’m very good and I have an excellent understanding of the short sale process and an excellent record of helping people avoid foreclosure. That being said, having this conversation with this nationally recognized doctor today made me think of how I need to “keep it real” with my current and potential future clients and customers.

Short sales can be tough. Short sales can be miserable. Things can go wrong. Things might not turn out the way you want them to.
Again I want to stress to any buyer or seller out there, that no matter what you hear or read, be prepared for anything.

I also want to point out that there are also many other variables I’ve discussed before, that can be a detriment to the process of a short sale such as unorganized or unmotivated sellers, terrible attorneys, unscrupulous third party negotiators, ill-advised listing brokers, uncooperative buyers, the economy, the job market, health issues, death, and the list goes on and on. With me at the helm, I help to minimize these variables and (for sanity’s sake) this goes a long way toward making the process, when it does take a long time, at least be narrowed down to a select few variables such as the sellers lender(s) being at fault.

In closing, at the end of the (possible) long road, whether you’re a buyer or a seller of a short sale, when I help get the short sale approved and closed, that is a good thing. I can’t tell people to be appreciative of that “good thing”. I can’t tout how successful things were, especially when the buyer and/or seller may be a “glass is half empty” type of person. But in the large scheme of things, getting a short sale transaction successfully closed with all parties accepting all terms is a great accomplishment. Period.

Most of my short sale transactions are very calculated. I narrow down most variables, pre-qualify the home being sold as a short sale and the marketing runs smoothly. The process of contract is seamless and the care that goes into negotiating with lending institutions is incredible. I set a high standard for myself and my team. My short sale transactions are by the numbers.

Should you have any questions about how I can help you sell or buy your home via a short sale, please call me at (631)831-9048. If you want to vent about how your short sale deal is going poorly – post it at facebook.com/longislandshortsales.
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By Thomas McGiveron, LSA

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