Do Short Sales Sell?

As 90% of the families that I talk to in Menifee, who are looking for rental homes, are going through foreclosure, I am frequently asked questions about the foreclosure process and asked to explain about Short Sales.

WHAT IS A SHORT SALE?

A Short Sale is the sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. In lieu of the house going into foreclosure, some lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments.

For a more in-depth clarification about Short Sales, this is a good article: http://homebuying.about.com/od/4closureshortsales/qt/112707_QualSS.htm


DO SHORT SALES SELL?

In my opinion, not as often as they should.

Today I reviewed 100 Menifee homes for sale on the MLS, price ranged $185,000-$244,000. Of these, 40 were Bank Owned, and 53 were Short Sales.

Next I reviewed the 51 MLS properties sold in Menifee from 5/1/2008 - 5/26/2008. Of these, 43 were bank owned (REOs), and 3 were Short Sales.


Based on the above, speaking speculatively, if 50 in 100 Menifee homes for sale are Short Sales, only 6 in 100 actually end up selling.


MY OWN SHORT SALE EXPERIENCE

Back in October I had a Short Sale listing, 2 bed/2 bath house, 1040 sq' in Rustlers Ranch. We had an offer in at $205,000. The owners owed less than $250k. It took the lender, Nationstar, almost 8 weeks to verbally counter back at $250,000. I sent the bank comps which strongly confirmed that $205k was a good offer, but Nationstar didn't listen. Well, of course the buyers backed out, the property went back to the bank in December, my clients negotiated a Cash for Keys, and the house came back on the market on 2/20/08 at $185,000.

Here is the kicker. 97 days later, this Nationstar property STILL has not sold, and is currently listed at $179,000.

Some lenders get it, some don't.


Here are three MENIFEE SHORT SALES THAT SOLD this month:

28535 Heather Green Way, Listed at $289,000, Sold at $287,000, 58 DOM
29322 Rock Vista Drive, Listed at $199,999, Sold at $258,950, 54 DOM
28700 Sunridge Court, Listed at $240,000, Sold at $292,000, 97 DOM

For more details on these Menifee Short Sales, go here:
http://www.teamdadanddaughters.com/default.asp_Q_f_E_cpg_A_pg_E_MenifeeShortSalesthatSold
For more details on Menifee homes sold this month, go here:
http://www.teamdadanddaughters.com/default.asp_Q_f_E_cpg_A_pg_E_MenifeeHomeSales-MonthlyReports

Short Sales do sell, and although the current numbers are low, I personally believe that the lenders and buyers will start responding better to these Short Sale listings. Not all properties and/or owners are good candidates for Short Sale. A Realtor, who is EXPERIENCED in Short Sales would be an excellent resource in determining this.

A big advantage in buying a short sale, is that you usually don't have to compete with multiple offers. I truly believe there are great buys to be had in the short sale market. If you want to buy a Short Sale, though, above all, you need PATIENCE. Patience, and hope, that good things come to those who wait.

Cynthia Aina
New Vista Realty
REO & Leasing Specialist
http://www.menifee4rent.com/