How do I Make Buyers Understand the Long Wait on a Short Sale?
- 1). Tell the buyer about the sheer volume of short sales that banks have to work through. For example, the Mortgage Bankers Association was routinely reporting after the housing bust of the late 2000s that one in 10 mortgage holders was delinquent on his payment. Many of those people are pursuing a short sale to get out from under the mortgage. Banks, therefore, have their hands full processing these sales.
- 2). Explain that there is often more than one lender involved in a short sale. Many homes have two mortgages on them, one senior to the other. Each lender has to approve the sale, which delays the process.
- 3). Tell the buyers that banks often try to stave off the process to see if the housing market will recover before the short sale proceeds. If the market does recover, a bank loses less on the mortgage, hence it is often in the banks' interest to drag their feet on the sale.
- 4). Remind the buyers that they're likely getting a great deal on the sale. If they don't believe it, show them what the house sold for previously. Let them know that if they don't want to deal with the headache of a short sale, there are other properties on the market.
