Short sales where are they going?
February 5, 2010 1 Comment
Successfully closed on my third short sale transaction in 7 days. The history of these listings is what’s interesting.
One listing took 11 months to close and 6 purchase contracts. That’s right Buyer #6 was the lucky buyer. However over the 11 months each purchase contract price declined, as we waited on Country Wide/Bank of America to negotiate the short sale.
2nd one was also Country Wide/Bank of America only took 8 months to process that contract, and one buyer, he stayed the course for the whole 8 months, not knowing whether he had brought a home or not. That takes patiences!
Listing #3 closed today after 8 months of negotiating with Chase Bank. If my math is correct, that is an aveage of 9 months for the banks to negotiate a short sale and to close.
Approx. 3 years ago when shorts sales were just getting started in Northern Colorado, it was my experience that negotiations took 4-6 months. Right now I am experiencing 30-45 days before the banks will even acknowledge that they have received the short sale package. I do not see this changing in the near future, except maybe to get worse as the economy continues its recession.
If I am correct short sales will not be an option for the Sellers in the near future, the banks will have to foreclosure on more properties driving the real estate prices down even more. I would really appreciate hearing from other agents who also specialize in short sales your thoughts and ideas on where the short sales market is going.
About rhondagiles
Much of the “elite” thinking is that banks are beginning to get a handle on the short sale process and as the recovery process continues, they will continue to enhance the process of selling short which, in most instances, is a benefit to the bank.
The administration, realizing that the housing market generally leads a recovery, will probably not take any action that would damage the housing recovery as a result many believe that the Treasury and the Federal Reserve Board will continue to purchase mortgage backed securities (MBS) from Fannie Mae and Freddie Mac and promote programs such as the first time home buyer.
Hopefully this will lead to continued improvements in the housing market including higher end homes and fewer short sales as well as foreclosures in most areas of the country.