Wachovia has announced they will no longer postpone a foreclosure sale date once it has been set. This directly affects our ability to assist our clients if they decide to short sale in lieu of foreclosure.
What this means to sellers
Procrastination will have dire consequences on sellers who wait until the last minute(less than two weeks) to put their house on the market as a short sale. We obviously understand that sellers want to exhaust all options before considering a short sale including a modification. Sellers should make a decision to sell no later than the filing of a notice of default on their home if the want to have the best chance of a successful short sale.
What this means to buyers
Buyers must be ready to close fast. In a recent listing I had ten offers on a home, a third of the offers were using a loan product that required a forty five day escrow. On the other hand there were other offers that were all cash or conventional(5% down payment or more). If you are considering buying a short sale you should look at the possibility that you may be asked to close in less than thirty days otherwise your chances of the seller accepting your offer are slim. Sellers are under extreme pressure to perform and as such are looking for a quick close from a committed buyer.
Other lenders are following this trend
My sources tell me we are seeing a trend and there is rumor that Bank of America is considering eliminating short sale extensions. I experienced this with Household Finance(HFC), my negotiator emphasised that there would be no extension on a short sale approval and that a sale date was set for the day after the expiration of the sort sale approval. Our seller decided to accept an offer form a buyer who was able to close in twenty one days.
Adjust your expectations or they will be adjusted for you
Short sales continue to evolve and we continue to see changes to the way servicers and investors manage properties in default. It’s clear we are witnessing a shift in the flexibility we will receive when it comes to negotiating with servicers and investors and it appears as though they are now willing to cut there losses and move on.
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