There is a negative theme emerging within the real estate industry regarding short sales.
Lenders have become one of the biggest obstacles in short sales.
Currently it’s important for the lenders to remember that there are more properties on the market in short sales than there are buyers.
Short sales require the real estate professional to invest an enormous amount of time, energy, and dollars to successfully market and sell the properties.
Successful short sales have positive results for all parties in the transaction. In a short sales transaction there is a seller who wants to sell, a buyer who wants to buy, a lender who wants to remove a liability, and a real estate professional who wants to be fairly compensated.
Lenders are clouding the waters.
A listing agreement is between the seller and the listing broker.
The real estate industry is permitting the lenders to control the real estate professional’s compensation with a disregard to the listing agreement. The real estate professional is now penalized by the lender for their efforts.
The buyers and sellers are also being treated poorly by the lenders.
The lenders are holding contracts for extended periods of time hoping for better contracts. There is little or no communication to the involved parties on the on the part of the lender. The result is total frustration to everyone involved.
The result is a number of buyers are now avoiding short sales and have elected to either purchase a traditional property or a foreclosure.
If the lenders continue the practice of non-communication with the customers and penalizing the real estate professionals they will extend the time on the market for the properties thus costing them additional fees, interest and taxes.
Best situation for the lenders – communication and speeding up the process.
A successful short sale can create a WIN – WIN situation for all parties.
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