Texas Short Sales in trouble?
I have an opinion and want to see what other agents think of this. In my opinion, short sales in TX will be extremely difficult right now for 3 reasons:
1) we have one of the most aggressive foreclosure processes in the country - 51 days from start to finish
2) we have non-judicial foreclosures - there's no one looking over the banks' shoulders
3) there is no right-of-redemption period - once they foreclose for non-payment, that's it.
It seems to me that the banks (or whoever holds the note) would zero in on TX for these reasons. While other states have things in place to make the banks accountable, we don't. Why wouldn't they just come in here and blast through the short sales and take them straight to foreclosure?? It's fast and it's easy.
Let me know what you think.
1) we have one of the most aggressive foreclosure processes in the country - 51 days from start to finish
2) we have non-judicial foreclosures - there's no one looking over the banks' shoulders
3) there is no right-of-redemption period - once they foreclose for non-payment, that's it.
It seems to me that the banks (or whoever holds the note) would zero in on TX for these reasons. While other states have things in place to make the banks accountable, we don't. Why wouldn't they just come in here and blast through the short sales and take them straight to foreclosure?? It's fast and it's easy.
Let me know what you think.
Replies to This Discussion
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Permalink Reply by Bryant Tutas on
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Cindy. I guess it would depend on if the numbers work or not. With a foreclosure the lender still ends up being in the business of owning real estate with all of the costs involved involved with maintaining and selling the property. Aren't they doing short sales in TX already?
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Permalink Reply by Steve Early on
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Hi Cindy:
I can't think of a reason why lenders would have any incentive to "blast through" an area simply because the foreclosure process is short and there is no redemption period (and most states are recourse states). People have stopped paying their mortgage all over the country, and while it may be more difficult to foreclose in other states, I'm not sure that would cause a particular investor to smile in glee over how quickly they could add REO properties to their inventory because they are in Texas.
I think they would prefer to sell short if they could. The issue will be; if you list a property and get an offer, can you close prior to the auction date and, if not, will the lender postpone the auction. Wells Fargo put out a policy change around mid-September that they will no longer stop auctions if a short sale cannot be approved and closed prior to the auction date. What would worry me most is whether or not I'm wasting all this effort to get a short sale approved just to lose it all to an auction that the lender won't postpone. Even if they CAN close in 51 days, the question is do they WANT to close in 51 days or would they prefer to do a short sale?
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Permalink Reply by Cindy LaPeer on
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We are doing short sales, but it seems that the banks are getting more and more unreasonable in their numbers and conditions.
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