Looking to waste months on a short sale in the Tampa Bay area? Are you seller who wants to drive the buyer away before bank approval? Or are you a buyer looking to wait months on end with a low probability of success?
To increase the chances that a short sale falls apart, follow these 7 monumentally bad ideas below:
1. Make sure you have a listing agent who lacks experience with short sales. What does it matter if the listing agent submits incomplete packages, piecemeal, to the lender?
2. Do not let the seller sign the contract. If the seller does not sign the contract, then it is not a contract (just an offer), and the buyer can walk without repercussion. If the seller doesn’t sign, then most lenders will not even consider the offer. Worse, they many not notice or tell you for months. And if the seller does not sign the offer, then the home can remain an Active Listing in the MLS and the Realtor can keep marketing the home to find a better offer.
3. Don’t bother asking for an escrow / earnest money deposit. Why insist that a buyer put anything at risk to show they are serious? Just write that a small escrow will be delivered a few days after bank approval – that way the buyer can walk away scott free. It’s only fair, right?
4. Insist on a quick closing date (60 days) or on rapid short sale approval time line (30-45 days). This is bound to speed up the bank’s approval process…if they realize the buyer can’t wait!
5. Insert a clause in the contract stating the buyer can withdraw at any time and receive the escrow deposit back immediately – that will undoubtedly demonstrate the buyer is seriously invested in the deal.
6. Ensure that the listing agent submits multiple offers to the bank. Surely multiple offers will not: (a) indicate the home was under priced, (b) encourage a high counter offer, and (c) drag out the approval process.
7. Make a very low ball offer. Why not? After all banks are desperate to unload these homes, and besides they are receiving federal bailout money! And it’s not like the seller cares – right?
Follow these 7 tips to decrease your chances of closing on a short sale, or contact Team Bohannon at Coldwell Banker to proceed with confidence.
