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It does remove quite a bit, but not "all." Removing all would likely mean giving the lender only ten days to reply, and not allowing commission to be a negotiable tool. The brokerage is paid by the seller, not the lender, so the lender shouldn't have a say in that.

Maybe we could get the MLS rules changed to make the Seller come up with the commission instead of the lender. That should remove the leverage that the Sellers are exerting on the Lenders. Do you think we can force the Sellers to do anything?
 

Miss Critter

Beach Fanatic
Mar 8, 2008
3,419
2,116
My perfect beach
Maybe we could get the MLS rules changed to make the Seller come up with the commission instead of the lender. That should remove the leverage that the Sellers are exerting on the Lenders. Do you think we can force the Sellers to do anything?

AA, you just don't seem to get it. Maybe there are sellers out there with hidden stashes of cash, but my guess is they are definitely a very small minority. Most sellers (again, this is just based on my personal experience with people I know personally or know of through acquaintances) are OUT OF MONEY!!!!!

You seem to think that if only these greedy rich people would just use their hidden cash and pay up on these mortgages, our local real estate market would climb out of the toilet, and things would be just peachy again. Ain't gonna happen.
 
AA, you just don't seem to get it. Maybe there are sellers out there with hidden stashes of cash, but my guess is they are definitely a very small minority. Most sellers (again, this is just based on my personal experience with people I know personally or know of through acquaintances) are OUT OF MONEY!!!!!

You seem to think that if only these greedy rich people would just use their hidden cash and pay up on these mortgages, our local real estate market would climb out of the toilet, and things would be just peachy again. Ain't gonna happen.

I hate to say it again, but real estate development and all the myriad of related disciplines are my passion and my livelihood. Most of the time my posts are more succinct than they appear at first glance. I get the short sell in a very big way. I compete with builders everyday who start and then short sell properties over and over and over and over.

You probably understand that much business is finding a lucrative opening and then ramming a truck through it. With every new theory that becomes a rule, there are people exploiting the unintended consequence.

One thing is going to fix our market: Full Consequences Must Be Felt. Just as a crop is rolled back into the ground to make the ground fertile for a new and different crop, these hundreds of thousands of fake deals must fully die, be broken down to see new growth. All these efforts to avoid the circle of life are dilutional of renewed fertility.
 

Miss Critter

Beach Fanatic
Mar 8, 2008
3,419
2,116
My perfect beach
Uh huh.

(How's that for succinct?) ;-)
 

Alyoopster

Beach Lover
Aug 15, 2007
77
5
I have a question as a Buyer: I just put in a contract on a "short sale" home. Can anyone tell me the average responce time that they are getting from the lenders?? And what is the sucess rate of them actually closing the deal?? Our offer was more than the listing agent's list price.

I know i need to be patient but geezz....
 

Joe Mammy

Beach Lover
Mar 26, 2007
140
40
Alyoopster-

Depends on the lender(s)- if there is more than one mortgage your chances of closing severely diminish especially if they are different lenders. A local lender can give you an answer quickly, national banks will take much longer and some are much more inundated with shorties than others (see Countrywide).

Also depends if the seller has submitted all required paperwork- hardship letter, two years financials etc and if they are truly in hardship and insolvent. Plus if the seller's agent or the closing agent have experience in shorties and constantly call the loss mitigation dept to stay on top of things. Establishing a direct human contact is crucial.

Hopefully your agent researched all of this before you submitted your offer.

To answer your question, the success rate is about 10%.
 

Miss Critter

Beach Fanatic
Mar 8, 2008
3,419
2,116
My perfect beach
Joe M, is the success rate really that abysmally low?? Only 10%? So, 90% of short sales in MLS will (relatively) soon be foreclosure listings. Ouch!
 

Joe Mammy

Beach Lover
Mar 26, 2007
140
40
I was using an educated guess for 10%, it is difficult to tell because you may have several different buyers step in before one closes. #1 grew impatient and moved on, #2 stepped in and actually got a counter from the bank and thought it was too high and moved on and then #3 saw the advertised accepted price (a good agent would market this way once they knew the banks magic number) and took it.

Also, when I run numbers going back a year it covers a period when agents were not listing by "sales type" which shows shorties. Now it is much easier to see the numbers as agents are listing correctly. Going forward we will get a more accurate number.
 

Bobby J

Beach Fanatic
Apr 18, 2005
4,043
599
Blue Mountain beach
www.lifeonshore.com
We tend to lose the buyer before the bank can wrap it up. Then the offers get lower and lower until the bank wakes up and decides what they are going to do. I think an interesting number would be how much money (percent) the bank loses from the first offer to the final closing be it another short sale offer or foreclosure.
 
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