Many active short sales have offers

[SD Realtor]

flyer not sure what will happen… I would imagine we will have a short term reluctance on many buyers part. Seems very locical. We are in the slow cyclical portion of the year anyways. I expect the sales pattern in 08 to mimic 07…I think any effects will be short lived and most likely forgotten by spring. The secular market direction is what is more important.

PW my beef with the banks is not the acceptance or non acceptance of the short sale. It is the response time. Additionally the fact that they can take so long to respond lets listings just accumulate offers and send them in periodically while prior offers are being reviewed.

Imagine if the entire resale market had a 6 week response time on your offer? It seems to me that some procedures can be put in place to not even allow a short sale to be listed until some of the distress verification was completed by the lender. Doesn’t that make sense? I know all of them are overwhelmed but the current system is lame…Like everything else we work with what we have…it just sucks though, IMO…

Anyways it doesn’t matter to me if they accept or don’t accept the short sale. Just don’t allow them to list it as a short sale until the lender can respond in a more timely manner.

[jimklinge]

I’d guess that the market stall will continue, because this is what’s going through every seller’s head right now:

“Lower the price? – heck, with the fires and all, I think I’ll wait – maybe just wait until Spring when it picks up again?”

Meanwhile, the buyer’s expectations are going down about $1,000 per day. 90 days = $90,000. How smart is waiting?

Jim the Realtor

[jimklinge]

I’d guess that the market stall will continue, because this is what’s going through every seller’s head right now:

“Lower the price? – heck, with the fires and all, I think I’ll wait – maybe just wait until Spring when it picks up again?”

Meanwhile, the buyer’s expectations are going down about $1,000 per day. 90 days = $90,000. How smart is waiting?

Jim the Realtor

[jimklinge]

I’d guess that the market stall will continue, because this is what’s going through every seller’s head right now:

“Lower the price? – heck, with the fires and all, I think I’ll wait – maybe just wait until Spring when it picks up again?”

Meanwhile, the buyer’s expectations are going down about $1,000 per day. 90 days = $90,000. How smart is waiting?

Jim the Realtor

[patientlywaiting]

I hear you SD Realtor. I don’t think that lenders can do much to prevent listings that don’t have their approval. Afterall, the borrowers still own the houses until foreclosure day.

Could be that would-be-sellers are listing low short sale prices as a way to pressure the lenders into dealing. That’s an interesting concept as those short sellers may create comp killers that drive down the prices in the neighborhood. But what do they care since they are under water already? A legitimate seller in a neighborhood with several attempted short sales will be caught in difficult position.

[patientlywaiting]

I hear you SD Realtor. I don’t think that lenders can do much to prevent listings that don’t have their approval. Afterall, the borrowers still own the houses until foreclosure day.

Could be that would-be-sellers are listing low short sale prices as a way to pressure the lenders into dealing. That’s an interesting concept as those short sellers may create comp killers that drive down the prices in the neighborhood. But what do they care since they are under water already? A legitimate seller in a neighborhood with several attempted short sales will be caught in difficult position.

[patientlywaiting]

I hear you SD Realtor. I don’t think that lenders can do much to prevent listings that don’t have their approval. Afterall, the borrowers still own the houses until foreclosure day.

Could be that would-be-sellers are listing low short sale prices as a way to pressure the lenders into dealing. That’s an interesting concept as those short sellers may create comp killers that drive down the prices in the neighborhood. But what do they care since they are under water already? A legitimate seller in a neighborhood with several attempted short sales will be caught in difficult position.

[SD Realtor]

I hear you Jim…

PW my personal guess is that because most (not all but most) lenders will not even LOOK at a short sale package until an offer is made, perhaps the sellers are listing in that manner just to get the ball rolling. That way they get an offer, and can at least send in all the docs so that the lender will at least review the darn package… It seems crazy to me that lenders are reticent to look at the package until an offer is made.

Who knows? Hey let them be comp killers right? We need more of them…

SD Realtor

[SD Realtor]

I hear you Jim…

PW my personal guess is that because most (not all but most) lenders will not even LOOK at a short sale package until an offer is made, perhaps the sellers are listing in that manner just to get the ball rolling. That way they get an offer, and can at least send in all the docs so that the lender will at least review the darn package… It seems crazy to me that lenders are reticent to look at the package until an offer is made.

Who knows? Hey let them be comp killers right? We need more of them…

SD Realtor

[SD Realtor]

I hear you Jim…

PW my personal guess is that because most (not all but most) lenders will not even LOOK at a short sale package until an offer is made, perhaps the sellers are listing in that manner just to get the ball rolling. That way they get an offer, and can at least send in all the docs so that the lender will at least review the darn package… It seems crazy to me that lenders are reticent to look at the package until an offer is made.

Who knows? Hey let them be comp killers right? We need more of them…

SD Realtor

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