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!
image source
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.
Related Posts -
Sarasota Homes For Sale Are Selling But Not The Way You Might Be Hearing! Sarasota homes for sale in pre-foreclosure will not be "stolen" from banks, so don't waste your time. [/caption] Buyers, please listen carefully.... Whatever you're hearing about banks giving away houses in and around Sarasota for pennies, it is NOT true. Who's feeding you this BS? Is someone telling you banks...... -
Sarasota Homes For Sale BEAT National Averages...In Not So Good Way! Sarasota homes for sale are sinking underwater at a rate greater than the reported 1 in 4 mortgages underwater. What this means to homeowners is that IF/WHEN they must sell, they'd better have a "boatload" of money available or.... [/caption] Bob & Louise of Sarasota (FL) owe $569,000 on a...... -
Sarasota Realtor Helps Homeowners Avoid Foreclosure...With NON Traditional Strategies! Sarasota Realtor turns to BETTER strategies for helping homeowners avoid foreclosure...after experiencing betrayal first hand. httpvh://www.youtube.com/watch?v=MFmBvQg6l_E I learned a damn hard lesson recently. ...at the expense of good people like property owners and landlords Mike & Sandy of Port Charlotte, Florida. The lesson (tragically) resulted in Mike & Sandy falling...... -
Sarasota Homes For Sale Require REAL Loan Mods & Refinances! Sarasota homeowners see loan mods and refinances as "band-aid" only, postponing exploding foreclosures while doing NOTHING about "underwater" home values. While less than 10,000 mortgages have been modified, more than 3 million mortgages have been refinanced. The purpose of the modification effort is to make payments more affordable for borrowers....... -
Sarasota Homes Selling Short DEMAND Experienced Realtors (doing Short Sales)! Sarasota homes sink "under water" as homeowners lose their jobs and search to avoid pain worse than foreclosure. [/caption] Calling yourself a "Certified Distressed Property Expert" or short sale "expert" involves more than taking a course and receiving a certificate. Over 100 short sales to date, I am not an......
- A New Wave of Distressed Sales & Foreclosures Due to BP Oil Spill? Not surprisingly, headlines like "The Worst Oil Spill in U.S. History" and "Sunbathers in Gas Masks" are doing substantial damage to the balance sheets of tourism dependent oceanfront resorts and small business real estate investors in the Gulf Coast. As one oceanfront real estate developer states: There is no real......
- Property Investor or Landlord? The secret has finally reached the general public; the way to make wealth quickly and continue to reap the benefits from it is to turn your eyes to real estate. Through the purchase and rehabilitation of various properties you can generate an incredible amount of income. Perhaps once the secret......
- Are you ready to walk away from your mortgage? The stock market has enjoyed a small bounce the last couple of days, but the real estate market will take a little longer to recover. A lot of people have seen the value of their homes drop by 30-40% over the last couple of years, and with job layoffs at......
- Housing update: short sale, foreclosure, etc. I am on the road once again and my internet is a little shaky, so I am not going to run the post that I had originally planned for today. Furthermore, Sheila asked for a housing update on this post and since there have been some developments, I thought......
- Jeff Kaller - Short Sales Real Estate Gurus Revealed: Real Estate Investor Info Product Review - Mr. Preforeclosure, Jeff Kaller Known as Mr. Preforeclosure, Jeff Kaller, Short sales expert has been on the real estate investing seminar circuit for a number of years. I must have first seen him in 2005 or so. His......
{ 2 comments… read them below or add one }
My aunt is having a same trouble with Virtual Bank and Mr. Doug Jennings far less then professional behavior. She could not sell her property short sell and is very frustrated with her lender. They are constantly harrasing her, even at work, to the point that her boss picked up the phone and told them not to bother his employees during work hours with personal matters. Even then, they kept calling her with bloked number. She now wants to re-instate her loan and pay up her payments. They told her that they’ll waive her late fees if she pays right away. They did not give her couple hours to transfer her money between her accounts. When she called the next day, they added 4-5 thousand dollars as late fees and attorney fees. If she doesn’t pay that, Mr. Jennings told her that she’ll see a city inspector at her door in 2 hrs. Not sure if thats a threat or just moking her. Do you know where we can file a complaint about these people? I think my aunt needs a long time therapy after this process.
I’m sorry, Nasan, to hear of your aunt’s struggles…especially with Virtual Bank. Of course, what other behavior should a person expect from Mr. Jennings, a debt collector? He appears to behave just as ALL other debt collectors behave.
Does your aunt have an attorney? If not, she should get an attorney immediately. Tell me where she lives, and I’ll try to point her toward an INFORMED real estate attorney in her area. Before she pays a penny, she should talk with an attorney.
She certainly can (and should) file complaints with the FTC (Federal Trade Commission) to start. However, before she files complaint, she needs to save her home and not just hand over money.
BTW, foreclosure in Florida (if your aunt is in Florida) takes time – it’s not as simple as a “city inspector” showing up at her door. Did he really say “city inspector?” In Florida AFTER foreclosure, there’s still an eviction process to get tenants out.
It’s not just a knock at the door and you’re out.
Thank you for sharing, Nasan. I hope your aunt is able to save her home.
Mike