Posted on Jul 10, 2012 in Roseville and Sacramento Short Sale FAQs

Hello everyone, I’m Mark Peek at Keller Williams Real Estate, your Roseville and Sacramento short sale specialists. Today I wanted to talk about a short sale topic where buyers under contract often back out. Sometimes we’ll get emails from clients telling us that the buyers backed out of a short sale and they are wondering what they are going to do. They wonder since they had a short sale approved, what will happen. One of the things that is important is to make sure when you are accepting an offer that there are reasonable terms to make sure the buyer is committed and that they are not just shopping you out. So they are not just getting in contract with you meanwhile using you and your property as an opportunity and if they find another opportunity then they are just going to let your contract go and then go buy something else.

When it comes to short sales, you have to make sure the buyer is committed in the deal. I think it is extremely important that the buyer and the buyer’s agent respect our contracts. So that is one of the things that you must do and if not, unfortunately you can be used and abused. It’s not the end of the world if a buyer backs out of a contract even if you have a trustee sale or a foreclosure sale date coming. We can get another buyer; we can put them in. So the question is what has to happen? Well, if you have a new buyer, you can’t just change the buyer’s name on the approval letter even if the terms are exactly the same. A lot of buyers and agents are I think misunderstood calling a short sale where a buyer backs out a pre-approved short sale. There really are no pre-approved short sales. You still have to have everything reapproved with the new buyer. Many times the buyer still has to sign arm’s length transaction documents that sometimes have to be notarized and so it’s not easy just to go back and change a buyer’s name on the contract. Often times we are talking about three to four weeks to get everything resubmitted and get a new approval letter.

One thing I will say with our market the way it is, it’s very tight right now. Prices are going up just a little because there is a bit of demand with the interest rates as low as they are right now and there are not a lot of properties on the market. One of the things that you have probably already seen is that the bank’s value of the property could change when you go back and submit that offer. If the valuation the bank has on your property is over 90 days old, you can bet they are going to order a new valuation on it. Then your pre-approved short sale price is no longer pre-approved or the same. That’s why it’s important to make sure that you are working with somebody who understands all of the things that the banks look at in a short sale and how to deal with it. Again, I’m Mark Peek with Keller Williams Real Estate, your Roseville and Sacramento short sale specialists and I’m here to help. Please let me know if you have any questions. Thank you very much.

Download My Foreclosure Prevention Package, or get started now by using my Short Sale Calculator

More Short Sale Articles

Leave a Comment