Comments on: Are Short Sales an Illusion? http://blog.redfin.com/losangeles/2008/09/are_short_sales_an_illusion.html Redfin Los Angeles Sweet Digs Thu, 09 Feb 2012 13:33:45 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Linda Nikkhoo http://blog.redfin.com/losangeles/2008/09/are_short_sales_an_illusion.html/comment-page-1#comment-17754 Linda Nikkhoo Mon, 29 Sep 2008 20:04:23 +0000 http://blog.redfin.com/losangeles/2008/09/are_short_sales_an_illusion.html#comment-17754 Professor Ratcliff is correct that short sales are merely an illusion. They are the tool that realtors use to reel in prospective buyers, then expect the buyers to make an offer on a value that keeps changing. Like trying to hit a moving target. Personally, I believe that the short sale concept is a sham, that should be banned from the practice of real estate. The process serves no useful purpose for either the seller or the buyer, and often frustrate the lender who is trying to liquidate the asset to get the money owed on a property. Whomever came up with this idea, should be investigated for fraud. The listed price is allegedly at or below market. However, when the lienholder on the property reviews the offer, it's rejected as too low 95% of the time. This would explain why there are many listed short sales, but few actual completed transactions. Since the short sale process is a myth, the practice should be banned. The criteria for short sale qualification is very stringent, and it appears that many properties are listed as such, when in fact the sellers have not met the criteria or are waiting for their lender to approve their sale. Most of the short sales out there, fail in practice, and revert back to the lender anyway. For my dollar, I'm looking at REOs only and will not waste my time or resources with mythical sales tactics. The short sale is the unicorn of real estate. Nice to fantasize about, but nonexistent. Professor Ratcliff is correct that short sales are merely an illusion. They are the tool that realtors use to reel in prospective buyers, then expect the buyers to make an offer on a value that keeps changing. Like trying to hit a moving target. Personally, I believe that the short sale concept is a sham, that should be banned from the practice of real estate. The process serves no useful purpose for either the seller or the buyer, and often frustrate the lender who is trying to liquidate the asset to get the money owed on a property.

Whomever came up with this idea, should be investigated for fraud. The listed price is allegedly at or below market. However, when the lienholder on the property reviews the offer, it’s rejected as too low 95% of the time. This would explain why there are many listed short sales, but few actual completed transactions.

Since the short sale process is a myth, the practice should be banned. The criteria for short sale qualification is very stringent, and it appears that many properties are listed as such, when in fact the sellers have not met the criteria or are waiting for their lender to approve their sale. Most of the short sales out there, fail in practice, and revert back to the lender anyway.

For my dollar, I’m looking at REOs only and will not waste my time or resources with mythical sales tactics. The short sale is the unicorn of real estate. Nice to fantasize about, but nonexistent.

]]> By: John Remeke http://blog.redfin.com/losangeles/2008/09/are_short_sales_an_illusion.html/comment-page-1#comment-17729 John Remeke Mon, 29 Sep 2008 07:41:26 +0000 http://blog.redfin.com/losangeles/2008/09/are_short_sales_an_illusion.html#comment-17729 Banks do not want to offload so they would not realize loss and they want to offload the properties on a higher than realistic value to an entity that they are looking for at this time. I think that all know the story and the tax payer is expected to carry these losses at the end. Banks do not want to offload so they would not realize loss and they want to offload the properties on a higher than realistic value to an entity that they are looking for at this time. I think that all know the story and the tax payer is expected to carry these losses at the end.

]]> By: Christopher Hain http://blog.redfin.com/losangeles/2008/09/are_short_sales_an_illusion.html/comment-page-1#comment-17714 Christopher Hain Mon, 29 Sep 2008 03:16:16 +0000 http://blog.redfin.com/losangeles/2008/09/are_short_sales_an_illusion.html#comment-17714 Your observation "the high-end houses aren’t in default. I’m seeing more low-end, starter homes in questionable locations that are falling into trouble" is right on the money. Nice areas of Santa Monica, for example, are seeing virtually no foreclosures. http://terrafirmala.com/2008/09/best-and-worst-foreclosure-areas-in.html Your observation “the high-end houses aren’t in default. I’m seeing more low-end, starter homes in questionable locations that are falling into trouble” is right on the money. Nice areas of Santa Monica, for example, are seeing virtually no foreclosures.

http://terrafirmala.com/2008/09/best-and-worst-foreclosure-areas-in.html

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