Dropping out of a Short Sale? You just PAVED THE WAY for a BACKUP BUYER!
Short Sales are not easy sales in Massachusetts or New Hampshire. Well, some are, but the vast majority are long, cumbersome and there are times the bank wants to hold out for a higher value.
This past month, I’ve seen two sales where the lender countered only within a few thousand dollars. Both sales were countered $4000 higher than what the short sale investor offered (yes these were investor purchases, but this article can apply to any purchase). What happened surprised me. The original buyer dropped out.
When you put an offer on a short sale you wait. You wait for the bank to send an appraiser or BPO agent, for them to review homeowner paperwork, you may be spending money on inspections or getting your loan approved, and then if all of the above happens, you then wait for approval from the investor. I’d say a short sale counteroffer is a NORM these days so don’t go in at your highest because the lender will likely counter.
The interesting part of these two sales is the amount to me seemed small. These buyers waited through all of the above only to drop out and have a backup buyer scoop it up and not have to wait. Sure the backup buyers were thrilled because these properties were still a screaming deal, but I think buyers need to seriously consider actually dropping out of a sale after 2+ months of waiting over a small amount. The market is shifting and buyers are willing to pay more, so you may need to be a little less conservative with your buy price if you want to get that short sale property.
If you’re an agent representing a buyer, you may need to seriously coach them that they may want to meet the bank’s counter-offer or at least counter back to show the bank you are willing to work with them. Otherwise, your buyer just did all the work for someone else to slip right into the deal.
For Realtors, Attorneys, Title companies, etc interested in our services please go to http://massachusettslossmitigation.com/
For homeowners needing assistance with avoiding foreclosure please go to http://shortsalemitigation.net/
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