Murphy’s Law and Short Sales

Actually, Murphy’s Law IS short sales.  ANYTHING that can go wrong, most likely will.  There are simply too many pieces of the puzzle that are outside the control of the buyer and seller.  That’s not to say that short sale transactions don’t work – they do.  They are just not for the faint of heart.

Both sides need knowledgeable professionals on their team.  Short sales are too complex to be handled by someone who is clueless or won’t stay on top of things.  Short sales involve keeping a lot of balls in the air.

Then you have to hope that the lender who has the mortgage of the seller is professional and motivated.  The negotiator assigned to the transaction must be both, as well.  If there is more than one mortgage (like a home equity loan), then you just doubled the number of people involved, the number of agreements that have to be reached, and the number of things that can go wrong.

You won’t have a closing date, or even an accepted contract that is approved by the lender(s) for weeks or months, and in some cases it can take even longer.  So most of the time for the buyer and seller is spend in limbo.  Waiting.  Waiting for the phone to ring, the fax to come through, the answer to a simple question, etc.  In addition to mortgages, there may also be association dues, taxes, and other expenses that the seller has incurred that must be paid off or satisfied at the time of closing.

Last minute surprises are not uncommon, even for the pros.  Payoffs that were calculated prematurely, penalties that were unexpected, or whatever.  In short sales, it ain’t over till every fat lady has sung.

So if you are the buyer, or seller, involved in a short sale, hang in there.  It’s like child birth – it’s worth it in the end.

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Tags: buyers, mortgage, real estate, sellers, short sale