Why Do Portland Short Sales Take So Long?

Does anyone enjoy filling out mountains of paperwork?

That’s exactly what Portland real estate agents — those who specialize in short sales, anyway — get ourselves into when we represent either the buyer or the seller in a short sale transaction.

Not only do the banks require enough paperwork to fill a swimming pool, the deal could fall through several weeks into the process. No deal, no commission — but that’s the life of a real estate agent!
The bottom line for you, the home buyer or seller, is that there’s nothing short about a Portland short sale. The banks involved are the ones who ultimately decide whether or not the deal will go through, and they’re not going to take that decision lightly. Sellers in a short sale situation owe more on their house than it is worth, so the bank is either going to allow a short sale, take the loss, and be rid of the asset, or allow the home will go into foreclosure and become the sole owner of the property.

The first thing the bank wants to know before agreeing to a short sale is why the seller is unable to repay their loan. The seller must submit all of their financial information in what’s called a short sale “package”. This might also include details about divorce, job loss, or any other contributing factor that the bank wants to know about. A good short sale listing agent will have the package ready (we do) so that when a buyer comes knocking, they can submit it to get the ball rolling.

The next most important thing the Portland short sale agent can do is double-check that mountain of paperwork to ensure that all the signatures are there and the dates are valid. If something’s missing, the bank may wait weeks or months to even request a correction.

Then there’s the fact that foreclosure departments of banks often don’t communicate with the agent handling the short sale. If the seller has stopped making payments on the loan, the foreclosure process may begin even while a short sale is being negotiated. If that happens, the deal could fall through no matter how close the seller, buyer and banks are to reaching an agreement. This is why I use (the best) Portland short sale negotiator, a good negotiator ensures consistent communication with the bank.

If you’ve been looking at short sales and you haven’t found a buyer’s agent yet, do. Because of the complexity and difficulty of short sale transactions, some real estate agents won’t take them on. Look for a Realtor who’s not only experienced but makes short sales part of their regular business. As a Certified Short Sale Agent in Portland, I know that it takes more than just know-how to make a short sale work — persistence and follow-through matter.

That mountain of paperwork? Bring it on.