Marin County Short Sales and REO’s: What Are They And How Do I Buy One? Part 2
So if short sales are a win-win for everyone involved, why are they so difficult to bring together?
First, banks are in the money-lending business, not the real estate business. They aren’t set up to negotiate and evaluate real estate transactions in a timely market. Finding the right person, the one who can actually say yes or no, can be a nightmare, and involve hours on the phone on hold.
Second, many of these homes now involve two loans. Lots of transactions were done three or four years ago where the first loan was for 80%, the second for 20%. (Remember “no money down?”). So now the problem is twice as bad. The bank holding the first has to get comfortable with what they accept, then get the bank holding the second to agree also. And often, the lender holding the second gets almost nothing. As they say, good luck with that.
So then, Bank No. 1 says yes, subject to Bank No. 2 saying yes in seven days. Bank No. 2 changes the amount and says yes, subject to Bank No. 1 agreeing to the new number in seven days. Bank No, 1 changes the number…you get the idea.
Short sales can give people a great deal, and a great deal of frustration as well. The process makes no sense. It’s not logical, and fights the best interests of the bank. Welcome to the world of short sales!
[…] unknown wrote an interesting post today onMarin County Short Sales and REOâ??s: What Are They And How Do I Buy …Here’s a quick excerptSo if short sales are a win-win for everyone involved, why are they so difficult to bring together? First, banks are in the money-lending business, not the real estate business. […]
[…] unknown wrote an interesting post today onMarin County Short Sales and REOâ??s: What Are They And How Do I Buy …Here’s a quick excerptFirst, banks are in the money-lending business, not the real estate business. They aren’t set up to negotiate and evaluate real estate transactions in a timely market. Finding the right person, the one who can actually say yes or no, … […]