Monday, February 11, 2008

The Dreaded Short Sale - What You Should Know

It's funny what some agents will do to circumvent the dreaded "Short Sale" labeling on their listings. It's like the kiss of death for the homeowner because most agents know to avoid them like the plague. In fact, I'm predicting most of those short sales will eventually become bank owned homes.

But why? Why do most agents prefer not to show their clients Short Sales? I guess it's because not only do you need to have an accepted offer with the owner, every leinholder on title needs to approve the deal too. Just imagine having 4 different people agreeing to allow the home to be sold. The chance of that happening is slim to none.

Some agents think their smart and price the home so low buyers think it's a steal. But what buyers don't realize, is that the owner might accept (owner will accept anything), but the lenders will definitely reject the deal. C'mon, how dumb do you think the lenders are? If it looks too good to be true, then it is.

Another tactic being used my some agents is to price the home a few dollars above the total amount owed to not label the home a "Short Sale." I guess with most agents avoided short sales, agents are doing everything possible to get as many people interested in the home as possible.

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