Sarasota real estate functions differently today, leaving many sellers questioning how to over #2 reason (their) houses don’t sell!
Sarasota homes for sale require luck and divinity for short sale success!
Short sales don’t go as planned!
I repeat, short sales don’t go as planned.
You can do everything possible to help your competent, short sale savvy listing agent sell your house to avoid foreclosure.
Instead, your house falls into foreclosure.
Top reason #2 your house doesn’t sell is that it’s a short sale!
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2. YOUR HOUSE IS A SHORT SALE. By no fault of your own, your house might not sell as a short sale.
- Many buyers do not want to see properties listed as short sales.
- Many buyers’ agents do not want to show houses listed as short sales. No guarantees exist for buyers submitting offers on shorts. Buyers and buyers’ agents do NOT like short sales.
- Banks force buyers to wait months for the bank to reject a 100% fair market offer with no requested concessions. Buyers are making very fair offers and banks are rejecting their offers, after forcing buyers to wait without word for months.
It’s gotten so bad many buyers’ agents delete all short sale listings so their customers (buyers) never see these ’short sale’ listings.
Problem: Banks require borrowers (sellers) and realtors to play guessing game regarding value of property and whether bank or secondary market investor (debt owner) will accept short sale at 100% of value.
Case Study: Virtual Bank Forces
Retired, Elderly School Teachers
Into Foreclosure…& Bankruptcy!
Case Study: Right now, I have a short sale listing with debt owned by Virtual Bank in Palm Beach, FL (a subsidiary of Lydian Private Bank). For more than TWO years, I have tried and tried and tried to short sell this property for two retired school teachers.
This property is an “investment property.” Without doubt, the retired school teachers made a huge mistake buying the property. They also realize a bank (or debt owner) is under no obligation to approve a short sale, regardless of fair offer.
Repeatedly, I have submitted 100% fair market offers to Virtual Bank’s Director of Collections Mr. Doug Jennings. Repeatedly, Mr. Jennings has refused these offers with no counter offer, despite solid evidence to support value.
In the meantime, the property has DROPPED $65,000 off value (perhaps more now) from initial fair market offer. Additionally, the property’s condition is worse:
- Horrible landscaping. St. Augustine grass has burned away. Plants died months ago.
- Roof Leak. Roof leak destroyed ceiling drywall near entrance, most definitely creating mold issue in FLORIDA’S heat & humidity with NO a/c to property.
- Water Intrusion. Leaky windows have resulted in constant water intrusion in bedrooms.
I even have attempted to contact all executives with Virtual Bank and Lydian Private Bank in hopes of understanding why Mr. Doug Jennings will not approve a short sale.
The sellers already have completed mandatory bankruptcy counseling session. They do not want to file for bankruptcy protection. However, they discovered during a detailed consultation with the attorney who will file their BK that they will pay approximately $230.00 for 60 months discharge 3 investment properties.
Whether right or wrong, good or bad, Virtual Bank has chosen to LOSE hundreds of thousands of dollars for Virtual Bank investors.
Or have they?
Perhaps I know nothing about banking and profits. For all I know, Virtual Bank is making money by not foreclosing on this property and not approving a short sale.
Short Sales Are Not Guaranteed!
Even when you can prove hardship, short sale approvals are not guaranteed.
By no fault of your own, trying to avoid foreclosure with short sale may or may not go well for you. Fortunately, I’ve never experienced a more frustrating short sale (attempt) than with Virtual Bank. In many instances (proven with email correspondence) Mr. Jennings has behaved less than professionally, especially when I appeared to go over Mr. Jennings’ head to executives with Virtual Bank and Lydian Private Bank.
Did I attempt to go above Mr. Jennings’ head? No! I attempted to do all I could to help a homeowners in distress and a bank mitigate further loss for its institutional investors. Obviously, I don’t know how banking works.
What is your experience with a short sale or avoiding foreclosure? Perhaps you’re angry investors (retired or not) are trying to get out of their “moral” or contractual obligation to repay debt. Whatever your comments or questions, go below to leave your questions, comments or experience with foreclosure or short sale. This is top reason #2 your house might not sell in today. Next, I address top reason #3.
Call me now if you have specific questions about avoiding foreclosure. The short sale might be best for you.
Sarasota real estate owners trying to avoid foreclosure by short selling may or may not get a smooth sale. Most certainly, I do not recommend holding out for a “normal” buyer and using “normal” purchase and sale paperwork. I have the scars (and horror stories) to prove why a list agent must recommend the option contract.
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