SHORT SALE - Horror Story of the week

July 12, 2008

Welcome to my first installment of my regular segment called ..

SHORT SALE - Horror Stories short sale horror story

I recently wrote an article: Ban All Short Sales , in which I suggested we start a petition to Ban Short-Sales ! ;or , at least get the NAR and the MLS to not allow listing short-sales until their is a bank approval.

Since then I have heard many accounts by real estate buyers, sellers and agents here in Phoenix and Scottsdale when dealing with non-approved Short Sales.

I want to begin sharing these SHORT SALE - Horror Stories with you.

Last week, after sifting through the listings of “short sales“, we found a

  • ’short sale’ home that was actually approved by the lender.
  • My client loved the home listed at $250K.
  • The client is using an FHA loan with 3% down-payment.
  • The buyer offered $260K.
  • The offer was not accepted.
  • The bank accepted a lesser price offer.
  • The listing agent told me the bank is simply not accepting FHA buyers with only the minimum 3% down as the loan denial percentage is more than 40%.

I have been involved with numerous REO transactions.

However, this is the first I have heard of banks taking lesser offers if a buyer has small down payments.

I wanted to share this short sale nightmare and continue to take names for my petition to ban short sales.

Please share your stories if you have any similar experiences; good or bad.

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Copyright © 2008 By James Wexler, All Rights Reserved. *SHORT SALE - Horror Story of the week*

Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs

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Written by James Wexler · Filed Under Articles, Short-sales / Foreclosures 

Comments

3 Responses to “SHORT SALE - Horror Story of the week”

  1. Kathy T. on July 12th, 2008 8:05 am

    I’ve become a big fan of your site, James. I’m featuring you (probably again) on Banks.com. I *hate* dealing with short sales to the point that when someone calls asking me to list one, I refer it out. Thank you, but no… I don’t want the headache and grief caused by the banks.

  2. Ban All Non-Approved Short Sales - Real Estate Investing on July 12th, 2008 8:23 am

    […] At Wexzilla.com, James Wexler is calling for a ban on all non-approved short sales.  Having experienced the nightmare of a short sale, I have to agree with him that banks often cause their own problems and make incredibly bad business decisions.  Sometimes they cut off their nose to spite their face. […]

  3. Jeff on December 11th, 2008 10:52 pm

    We put a bid on a short sale on April 4 2008 as of Dec 13 Countrywide could not pull their head out of their #@$% to get the deal done we were pre-approved had financing in place all we needed was an HUD report on the property, simple , wrong, meanwhile house sits empty since May. What a joke!!!!

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