Mike’s Real Estate Show

  A listener asked this question regarding WHEN a short sale should close? It’s a guess when a “Short-Sale” will close. With a bank owned property or “REO”  closing can be more definite but getting it presented is another story!!  Regarding IF a listing agent should disclose if the property is a “Short-Sale” or “REO”-ABSOLUTELY!! In our MLS the listing agent must state this in the confidential remarks. We have some who tape dance around this by stating in the MLS, “Subject to lender approval” or “Subject to accountant approval or IRS approval”, blah,blah, blah! If it walks like a duck, quacks like a duck, it’s a Duck! And you would think in a Buyers Market the lenders might be all warm and fuzzy to get their properties sold? Read the following taken from a listing on a REO listing:

“Seller offering credit up to $3300 in closing costs and a $1500 bonus to selling agent. Submit all offers on CAR form w/proof of funds for cash offers or pre approval letter from direct endorsement lender and copy of deposit check (3% of PP). Seller reserves the choice of title/escrow. Please allow time for response to offer. No reports available. All required disclosures will be provided upon acceptance. Offer As-is. Please fax to..”

Now granted, we have some closing costs for the Buyer, little bit of incentive to the selling agent but “direct endorsement lender”?, 3% deposit of Purchase price? Seller chooses title and escrow (then they can pay for it!), Please allow time for response to offer (how MUCH time!!), Offer “As-Is”, then, don’t waste my time with your offer, “Fax to”. You just can’t wait to show one of these properties can you!!!?? What a lovely experience. This is the world once the banks get into Real Estate!!