WHO CONTROLS THE SHORT SALE?

By
Title Company with Richard P. Zaretsky P.A. - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY
http://actvra.in/r6F

WHO CONTROLS THE SHORT SALE?

Who Controls the Short Sale?

In this environment of the short sale it seems apparent that the bank controls the sale.  Some might say the buyer controls the sale.  My opinion is that both statements are primarily incorrect.  The seller owns the house.  The seller must sign the contract.  The seller must sign the deed.  Of course, if the seller can't sell and the bank forecloses, then the bank will likely have the REO and the sale is now with them - as the new owner.  The issue is that the bank is the "reluctant" owner.  The bank has already determined (by working with the seller and buyer in the short sale process) that it is in the bank's best economic interest to sell the house outside of the foreclosure process and prevent an REO occurance.  If the bank won't go down low enough and tries to beat up the seller or seller broker - the seller can say NO.  What choice does the bank have?  It's like playing poker - who is bluffing?

The short sale enterprise is a game.  There are usually 3 main players - the bank, the buyer and the seller.  Assisting the players are the seller broker and the appraiser, and sometimes the buyer broker (if 2 brokers are involved).  Playing the game takes expertise and knowing how the opposing players think.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660  RPZ99@FLORIDA-COUNSEL.COM - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers with Short Sales

 
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Tags:
short sale attorney
short sale lawyer
real estate lawyer
palm beach county
short sale
preforeclosure
west palm beach short sales

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Rainer
67,508
Leigh Bates
The Trinity Group
Atlantic & Pacific Real Estate

Unfortunately the bank has too much control - everyone is at their mercy. As many as I have done, the buyer rarely has any say, except to walk-away. The sellers are usually not in any position to do anything but let it go, and regardless, the bank wins.

I am actually working one short sale now that is a very small deal and the bank wants more than market value. They won't bend and we have nowhere to reduce costs. I'm not sure what is going to happen right now, but it's looking like they are going to have to take the property back.

November 13, 2007 11:43 PM
Rainer
105,006
Mike Norvell Sr
Norvell Consulting Group
Morris Williams Realty

National Averages are over 80 % failure for closing a short sale...I would love to know, Richard, how using a service would increase the odds..If I could increase my percentages to closer to 80 % success rate, then I would sign up...I also believe that the criteria for selecting the foreclosures to submit to short sale would make a big impact on the success rate.

If you can make this work for me Richard, give me a call..My area in Fl is full of prospects...flooded would be a good word!

March 07, 2008 05:24 PM
Rainmaker
350,733
Bill Somerset
ABR, e-PRO - Realtor - NH Real Estate Agent
Avalar Advantage Real estate
It's an interesting circle.  I'm experiencing my first short sale with some buyers currently.  Luckily I educated myself and them on the process prior to entering into negotiations.
March 08, 2008 07:19 AM
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Rainmaker
205,558

Richard Zaretsky

Florida Real Estate Attorney
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Additional Information

Legal true life experiences, general observations and commentaries for Realtors, Lawyers and Mortgage Brokers - also see our Palm Beach County Short Sales group blog.
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