Sure you’ve probably read the horror stories about dealing with nasty lenders. Agents gripe about them constantly on blogs and online forums. You may have even tried contacting your lender about short sales or loan modifications and figured out first hand that they’re not always the most helpful. But I can tell you from experience; it’s usually not your lender that kills short sales.
And what about short sale buyers? Sure, it’s likely that buyers going after short sales without proper expectations and an understanding of the process aren’t likely to stick around long enough to get short sales closed. However, an experienced agent should help to clear expectations, explain the process, and follow up with the listing agent regularly to check progress. As a listing agent, we sometimes have to coach the buyer’s agent on keeping their buyers engaged. Guess what, even though some buyers ultimately walk, it’s still not the top reason Idaho short sales don’t’ close.
So what is the top reason a short sales fail in Idaho? Believe it or not, it’s the seller. Now if that comes as a shock to you, please let me explain. The contributing factors listed above can really wreak havoc on the outcome of short sales, however, if a seller truly committed to process, 9 times out of 10 we can overcome those obstacles. So then, how can a seller avoid being top reason short sales fail?
Here are 3 good ideas for success:
- Make up your mind. Before we list a property for short sale, I try to make sure that my seller’s are clear on their intentions. The short sale option is for sellers who’ve exhausted all other foreclosure alternatives. If you’re going to attempt to get a loan modification, that should be completed first. Most lenders won’t let you attempt both at the same time. Once you’ve made up your mind to attempt a short sale, stick with it.
- Never give up. Completing successful short sales is a roller coaster ride that can make some sellers sick. There are lots of twists, turns, ups and downs involved. One minute there can be a lot of forward momentum and then next, you’re going the opposite direction. When a buyer walks, your lender misplaces docs, or the value comes in too high, those issues can wear you down but they’re not insurmountable. Persistence is key to successful short sales.
- Commit to the process. Selling your home on good day isn’t easy in a declining market. Add to the mix financial and emotional stress of losing a home, and it can be hard to stay focused on the positive outcome short sales can provide. Making sure your home is well maintained and easy to show might not rank high on your list given the reasons for selling; but if you keep your focus on the benefits of successful short sales you will usually come out on top.
Short sales can be the best possible outcome in most situations for sellers who can no longer afford to keep their homes. Your lender prefers them to foreclosure and they’re likely to help you recover faster financially with less damage to your credit than a foreclosure or bankruptcy.
What are some of the biggest obstacles you face in a short sale? Maybe we can help.
