My clients often ask me what the difference is between a short sale and an REO. I normally go into quite a detailed explanation about the ups and downs of both, and always wind up telling them REO’S are always the way to go. I’ve actually dealt with this situation a couple of times in the last few months that really confirmed the truth.
For over a year now, I have had the pleasure of dealing with a wonderful family. They in North Hollywood, and have been searching for their perfect house in this area for quite awhile now. The first few times we looked around, we didn’t find anything that would have benefited their situation. The family had decided to take about a year, waiting for prices to drop, before they wanted to search again.
So, I took them out a couple of months ago and found a cabin that was perfect for them. The cabin is super clean and situated on a great lot with a ton of beautiful oak trees. Even at the $149,900 price tag, it was a great deal. The one big problem with it was it being a short sale listing. I warned them of the major hassles that usually accompany buying a short sale, but they liked the house enough to risk it.
Over a month into the process, and we still hadn’t heard a response back. It was around this time that I had come to the conclusion that the selling agent hadn’t done his part in filing the short sale paperwork. I informed my clients that the only option we had now was to wait until the bank responded. The selling agent contacted me over a month later to inform me that the bank had snatched this property from him, and didn’t respond to our offer.
It is obvious why I have such a disdain for short sales. I am sure this won’t be the end of it…
Article submitter Mike Kohn knows all about shopping a home for sale and homes for sale in general. Check out more of his posts online.