“It’ll Go Fine — Really”

Short sales deservedly have a reputation for being aggravating time sinks for home Buyers (and their Realtors!).

Even when they work out — which is less than one-third of the time — the Buyer can easily wait months for the bank(s) holding the mortgage(s) to agree to take a haircut on what they’re owed, clearing the path for a deal. (If they don’t — the usual outcome — the property progresses to foreclosure.)

In the meantime, many banks continue to collect offers, which they’re allowed to do because they haven’t finally signed off on anything (the typical short sale purchase agreement contains one or more contingencies, which serve as “outs” should the bank receive a better offer).

The foregoing means that short sale Buyers need to have A LOT of patience, and accept that they can either be “bumped” or have to increase their offer at any time if they really want to buy the property in question.

“Masochism Quotient”

With all that as prelude, I saw the following in the “Agent Remarks” field on a short sale that hit the market yesterday:

Subject to bank approval. Seller will sign only one P.A. & submit to bank all other offers will be back up. Process started with bank. Agent experienced in Short Sales.

Translation: assuming all of the foregoing is true (see,Experienced Short Sale Agent“), the odds of a deal in this case are a little higher, and the “masochism quotient” for would-be Buyers will be a little less . . . .

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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