Bank of America short sale
People love to hear my tales about true stories that happen in Sacramento real estate, especially when it comes to long-suffering short sales in Elk Grove. Why Elk Grove? Because so many of the neighborhoods in Elk Grove were built during 2004 to 2008 or refinanced during the boom, which means Elk Grove has had its fair share of short sales. Also, many of the loan modifications promised to homeowners turned out to be jokes.
Lots of short sales close within 3 months, but every so often I get that oddball short sale that turns out to be a huge challenge.
Unlike the hey days of pre-2012 in Sacramento, we are not seeing a lot of short sales in the area anymore. About 4% of all the listings in Sacramento County at the moment are active short sales, as compared to about 75% a while back. Having a small percentage of homes for sale that are underwater is good news for just about everybody, though, except that short sale seller who needs to sell her home.
In case you’re wondering, and I suspect you probably are, my own caseload of short sales has dramatically decreased, but I still manage to sell and negotiate a large number of Sacramento short sales. I thought the number was much smaller than it is, but so far this year almost 1 out of every 4 sales I’ve closed has been a short sale. It means I am still pulling in a huge chunk of the short sale business and most likely continue to rank as the best Sacramento short sale agent in town.
This is an interesting allegory of an Elk Grove short sale that survived two auctions directed by Nationstar. First, let me say that the very nature of short sales can sometimes mean the listing agent will be forced to sell that home 2 or 3 times. The reason for multiple resales has nothing to do with the negotiations, sellers or listing agent. It is almost always caused by the buyers. They flake out. Cold feet. Change their minds. Find something else. Move away. Lose jobs. Indigestion. Whatever.
All Sacramento short sales are not the same, and a seller should not just hire any old Realtor he or she can find to do a short sale. I can’t express the sentiment enough that if you need to do a short sale, you owe it to yourself to hire the best Sacramento short sale agent you can find because you have no idea, and I mean seriously absolutely zero idea, of what can happen in a short sale, but a specialist does. A specialist can prevent some crap from ever taking place to start with.
For crying out loud, Sacramento short sales are traumatic enough without lopping a second or third helping of pain on top of existing angst and agony.
It’s not really fair to call this a Bank of America short sale when in reality it is actually a Bank of America short sale with Fannie Mae as the investor, which is a different kind of animal from other types of Bank of America short sales. When Bank of America is merely the servicer, it means Fannie Mae short sales are handled differently. In fact, Fannie Mae now has its own website for submitting short sales, which tremendously expedites the process.
But the procedure and short sale process still needs to follow Fannie Mae guidelines, which at times, I realize, can be difficult for sellers and buyers to wrap their heads around. The valuation placed on some Fannie Mae properties astounds other real estate agents. I suspect it’s because we work under the premise that valuation means market value, like an appraiser would do it, but that’s not how Fannie Mae seems to work. Its valuation, I suspect, has more to do with whether it is more economically feasible to sell at its suggested valuation over being paid to do a foreclosure and, yes, banks make money on foreclosures.