Do You Tell The Short Sale Lender "Buyer Walked"?

By
Real Estate Broker Owner with Rulnick Realty, Inc.

 Short Sale buyer walks

Karla Leahy started an interesting discussion on www.ShortSaleSuperstars.com.  She asked "Do you inform the short sale lender when you no longer have an offer?"

From what I’ve seen the thought process behind not divulging the buyer walked is:

1. The lender will complete an appraisal or BPO that will speed up the next approval

2. The seller’s pre-qualification may be completed and ready for the next attempt

3.  With some lenders, you can sneak in a substitute buyer

Bottom line, it “saves time” for the next buyer, the one you hope closes.

BUT--  IS IT RIGHT TO NOT DISCLOSE THE BUYER WALKED?  Why should the short sale system be clogged because you are trying to speed up your next offer?  Is it right to allow the lender to continue to work on an approval when there is no longer a contract? Sometimes there is another twist on trying to speed up an approval.  “Fake” or “starter” offers are sent in to the lenders to get an appraisal ordered, when the “buyer” has no intention of closing.  The “buyer” might even be the real estate agent.

Some of the lenders have a few hundred thousand offers in process. HOW MANY ARE LEGITIMATE OFFERS?  The “real” buyers (and the sellers) suffer through longer wait times because others have tried to game the system, "dead" deals are being processed or offers with no hope for approval have been submitted.  If lenders were only processing contracts that could actually close, all short sales would be speeded up, right?

So, I ask "Would YOU call the short sale lender and tell them to stop working on the sale if your buyer walked?" 

 

It's Wendy!

Available Short Sale Agent Training:

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Destin FL Real Estate

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Posted by

"It's Wendy... It's Sold!"

Wendy Rulnick, Broker/Owner Rulnick Realty, Inc.

Call Wendy Rulnick 1-850-650-7883 ext 204

email itswendy@rulnickrealty.com

www.ItsWendy.com property searches and community info

www.ShortSales-EmeraldCoast.com for short sale help on the Emerald Coast

Co-Founder www.ShortSaleSuperstars.com  national network

Wendy Rulnick is the marketing choice for sellers on the Emerald Coast who want to list and get their homes and condos sold in Destin, Sandestin, Bluewater Bay, Santa Rosa Beach, 30-A, Watercolor, Seaside, Rosemary Beach, Seacrest Beach, Kelly Plantation, Regatta Bay, Destiny and more.

Rulnick Realty

 

close

Re-Bloggged 5 times:

Re-Blogged By Re-Blogged At
  1. Fernando Herboso - Broker for Maxus Realty Group 10/18/2009 07:33 AM
  2. Rob Arnold 10/18/2009 05:12 PM
  3. Pam Ackley 10/18/2009 06:15 PM
  4. Roland Woodworth 10/18/2009 11:22 PM
  5. Eric Reid 10/19/2009 09:13 PM
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the music-note to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Real Estate Sales and Marketing
Groups:
Short Sale REALTORS®
Short Sale Specialists & Pre-Foreclosure Education
Short Sales Specialists
Short Sale Support Group
Sharing Information of Short Sales
Tags:
short sales
destin short sales

Comments 79 New Comment

Rainmaker
581,299
Petra Norris
Realtor, Lakeland FL Homes for Sale
CDV TransAtlantic, Inc.

Wendy - I would not tell the lender simply for the #1 reason that I represent the seller.

October 20, 2009 03:50 PM
Rainmaker
268,532
Minna Reid
Team Lead - Reid Real Estate Group
Keller Williams Greater Hartford

Jim - the bank is neither my client or my customer in a short sale.  I represent the seller.

I also would never tell them my buyer walked until I had a new buyer in place.

October 21, 2009 10:29 AM
Rainmaker
30,325
Joe Niece
REMAX Results

Not sure how it would help the seller or the lender to tell them. 

November 05, 2009 11:49 PM
Rainmaker
529,728
Ginger Harper
Your Southport~Oak Island Agent!
Coldwell Banker Sea Coast Advantage

There have been many times when I wanted to...haven't done it yet.

March 09, 2010 11:28 AM
Rainer
28,025
Sheri Rogers
Power Rentals & Investments, LLC

Yes, I would. When in doubt, disclose.  Saves on a lot of confusion.

May 24, 2010 07:26 PM
Rainmaker
449,596

Wendy Rulnick

Destin FL Real Estate
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tree to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Author Bio: Wendy Rulnick, Rulnick Realty, Real Estate Broker in Destin Florida and all surrounding towns

The market. Smart sellers. The Emerald Coast of Florida. stLight.options({publisher:'38725d03-3cc6-42e6-bcc5-9e8126fcc3e0'});