Considerably, the article is actually the freshest on that worthw hile topic. I harmonise with your conclusions and also will certainly thirstily look forward to your coming updates. Saying thanks definitely will not just be enough, for the extraordinary lucidity in your writing. I will certainly instantly grab your rss feed to stay privy of any updates. Gratifying work and also much success in your business dealings!

As a listing agent it is very frustrating when the buyer walks away, but listing agents do have the right, according to the short sale addendum to the purchase contract, to submit all other offers. However, many agents are taking the home off the market or placing it as Pending status on MLS in order to entice the buyer to be loyal and stick around. As the listing agent your fiduciary duty is to the Seller (in this case the homeowner) and you should place the home as AWC in order to try to procur a better offer in case the bank does not approve the first one. Your duty is not to the Buyer and the Buyer will likely be looking elsewhere anyhow. When they find something better they will ditch your Seller and you will be left with nothing. I'm not saying submit an offer that is $500 more than the first, but do try to procur the best buyer/offer possible and continue to market the property even after you have submitted the first short sale package. I think it is very important that listing agents note what Susan is saying here. As a buyers agent you will find your client the best deal possible, and so you should, even if that means not waiting for short sale approval if it takes to long. On the other hand, I do not think that Buyers agents should push their buyers toward making offers on REO's simply because their odds to collect a commission improve. All agents need to remember the code of ethics and be reminded of who their fiduciary duties are to. If you are a Buyer beware of agents who discourage you from viewing short sale properties.

It's very important to have this disclaimer. Every home buyer should make sure their realtor includes one to give you freedom to keep looking. In many cases, the bank will sit for an extended period time on many offers. If it takes too long, you should want to be able to move on...especially if something better comes along (perhaps an REO that will close very quick)

Great Information Jay. Definitely contact your agent. There are a number of pitfalls to working with short sales. Great benefits when it works and closes, but you need a lot of patience. The contract will tell you in no uncertain terms what you can and can not do, without penalty.

It seems like most home buyers in San Diego find and purchase a different property before the bank gets around to responding to their short sale offer. But Jay is right, it all depends upon the contract language, so be careful to use the right language and offer forms!

P.S. - Can I advertise our services here on your website?? :-)) I think the answer is NOT!!

The Buyer can always cancel - however - if they are in contract with one of our Sellers they will forfeit their Earnest Money. That tends to keep them "in the game".

Jay I'm with you on this one. People do need to contact their agent. Too often I have friends and family calling me to verify what their agent is telling them. It's ridiculous. Are agents not explaining their fiduciary duties to their clients that they feel the need to contact other agents? Be sure to interview your agent before hiring them. Ask how many short sales your agent has handled, how they will negotiate the terms, and most importantly if they are willing to place offers on short sales for you. Some agents don't want to deal with short sales and therefore will advise clients against them. Many homes on the market today are short sales! I think it is outrageous to discount even viewing them, because they may not work out. Your agent should be able to determine, prior to placing an offer, whether or not a particular deal is worth it. Some folks that are trying to sell short of what they owe don't qualify for a short sale, so their bank will never approve it. This doesn't mean they can't try though. Ask the homeowner how many liens they have. Ask if they are current on their HOA. Become an educated home buyer and short sales will prove promising for you. People that have a trustee sale scheduled in two weeks are doing too little too late and those are not the types of deals you want to become involved with. When searching for any real estate, my number one suggestion though, is deal with a local Realtor. [Link and advertising statement deleted by Jay T.]

The Northern Virginia Real Estate Sales Contract requires that a specific "short sale contingency addendum" be included which give the seller a time frame for getting the bank's approval. At that point, the home buyer can give notice voiding the contract, grant an extension, or continue being frustrated with the whole experience!

Sounds like this client's agent didn't properly prepare him for the ugly realities of short sales. There is NOTHING short about a short sale. They should be called LONG sales ;)

Good response to a superbly broad question. Ultimately, only the buyer's agent will be able to give his client the most accurate answer. What I find interesting, as others have noted, is this buyer's lack of understanding of the short sales process timeline. 3 weeks? Even at 3 months it wouldn't necessarily mean that a response is forthcoming. Best of luck.

This persons agent should have advised them up front that there's nothing short about the time it takes for a short sale to close. A buyer can expect to wait 30-45 days for a response from the bank as well as another 30-45 days to get to the closing table. This buyers agent should have explained this up front to prevent just such a situation from occuring.

As a listing agent it is very frustrating when the buyer walks away, but listing agents do have the right, according to the short sale addendum to the purchase contract, to submit all other offers. However, many agents are taking the home off the market or placing it as Pending status on MLS in order to entice the buyer to be loyal and stick around. As the listing agent your fiduciary duty is to the Seller (in this case the homeowner) and you should place the home as AWC in order to try to procur a better offer in case the bank does not approve the first one. Your duty is not to the Buyer and the Buyer will likely be looking elsewhere anyhow. When they find something better they will ditch your Seller and you will be left with nothing. I'm not saying submit an offer that is $500 more than the first, but do try to procur the best buyer/offer possible and continue to market the property even after you have submitted the first short sale package. I think it is very important that listing agents note what Susan is saying here. As a buyers agent you will find your client the best deal possible, and so you should, even if that means not waiting for short sale approval if it takes to long. On the other hand, I do not think that Buyers agents should push their buyers toward making offers on REO's simply because their odds to collect a commission improve. All agents need to remember the code of ethics and be reminded of who their fiduciary duties are to. If you are a Buyer beware of agents who discourage you from viewing short sale properties.

It's very important to have this disclaimer. Every home buyer should make sure their realtor includes one to give you freedom to keep looking. In many cases, the bank will sit for an extended period time on many offers. If it takes too long, you should want to be able to move on...especially if something better comes along (perhaps an REO that will close very quick)

Great Information Jay. Definitely contact your agent. There are a number of pitfalls to working with short sales. Great benefits when it works and closes, but you need a lot of patience. The contract will tell you in no uncertain terms what you can and can not do, without penalty.

It seems like most home buyers in San Diego find and purchase a different property before the bank gets around to responding to their short sale offer. But Jay is right, it all depends upon the contract language, so be careful to use the right language and offer forms!

P.S. - Can I advertise our services here on your website?? :-)) I think the answer is NOT!!

The Buyer can always cancel - however - if they are in contract with one of our Sellers they will forfeit their Earnest Money. That tends to keep them "in the game".

Jay I'm with you on this one. People do need to contact their agent. Too often I have friends and family calling me to verify what their agent is telling them. It's ridiculous. Are agents not explaining their fiduciary duties to their clients that they feel the need to contact other agents? Be sure to interview your agent before hiring them. Ask how many short sales your agent has handled, how they will negotiate the terms, and most importantly if they are willing to place offers on short sales for you. Some agents don't want to deal with short sales and therefore will advise clients against them. Many homes on the market today are short sales! I think it is outrageous to discount even viewing them, because they may not work out. Your agent should be able to determine, prior to placing an offer, whether or not a particular deal is worth it. Some folks that are trying to sell short of what they owe don't qualify for a short sale, so their bank will never approve it. This doesn't mean they can't try though. Ask the homeowner how many liens they have. Ask if they are current on their HOA. Become an educated home buyer and short sales will prove promising for you. People that have a trustee sale scheduled in two weeks are doing too little too late and those are not the types of deals you want to become involved with. When searching for any real estate, my number one suggestion though, is deal with a local Realtor. [Link and advertising statement deleted by Jay T.]

The Northern Virginia Real Estate Sales Contract requires that a specific "short sale contingency addendum" be included which give the seller a time frame for getting the bank's approval. At that point, the home buyer can give notice voiding the contract, grant an extension, or continue being frustrated with the whole experience!

Sounds like this client's agent didn't properly prepare him for the ugly realities of short sales. There is NOTHING short about a short sale. They should be called LONG sales ;)

Good response to a superbly broad question. Ultimately, only the buyer's agent will be able to give his client the most accurate answer. What I find interesting, as others have noted, is this buyer's lack of understanding of the short sales process timeline. 3 weeks? Even at 3 months it wouldn't necessarily mean that a response is forthcoming. Best of luck.

Any real estate sales contract determines the rights and olbigations of both the buyer and seller. As Jay notes, contracts can be drawn in an infinite variety of ways. Ultimately, the contract controls. In California, the most prevalant contract is the CAR contract. The CAR short sale addendum includes a date to obtain short sale approval. If short sale approval has not been obtained by this date, then either party may cancel. In addition, the CAR short sale addendum provides two choices: 1) the time periods for buyer to make escrow deposit and remove contingencies start from the day SELLER accepts offer or 2) the time periods start from the day LENDER approves short sale. Most contracts I see and have been involved with have option #2.

This persons agent should have advised them up front that there's nothing short about the time it takes for a short sale to close. A buyer can expect to wait 30-45 days for a response from the bank as well as another 30-45 days to get to the closing table. This buyers agent should have explained this up front to prevent just such a situation from occuring.