Not as strange as you may expect. Short Sales come in different types. One of the short sale types is the one that is buying the short sale seller more time.
While there this poses an ethical question and potentially one of “fraud”, this one should be mentioned first and should not be ruled out as “not existing”.
Properties that are for sale in the Multiple Listing Service, should be for sale. They should be able to have buyers view them and write offers on them. If a buyer is not able to view a home that is for sale, how do you expect that home to be sold? Santa Clarita real estate for sale
Every once in a while, with tenant occupied properties, where the tenants are not too keen on showing the home to prospective buyers, offers are accepted “sight unseen”.
Some tenant occupied properties have tenants that are upset. Upset at the fact the owner did not let them know they were not making their payments. Maybe a lease was in place and the last thing that the tenant wanted to do was move early.
There could be kids involved that attend a particular school and now all that has to change. Those types of tenants may not want to cooperate with the property being shown to prospective short sale buyers.
Far more the exception than the rule, these “no viewing possible” real estate listings create tension. Some buyers would never write on a home that they could not view in person. Most would not. Something else to consider with a short sale of this type; is the tenant going to leave when it closes escrow with the new buyer? If they don’t move out – it will be up to the new owner to evict – and that could be costly for sure.
Back to the Short Sale tactic of buying time…
When the seller wants to continue to live in their short sale and wants it listed so the bank knows that it is being sold as a short sale, that could pose a problem.
Buyers of this type of “short sale” can be in for a real treat if the short sale seller has employed their agent to do this act.
An even bigger problem is if the short sale realtor is not aware of the short sale sellers intention.
I only say “bigger” because if an agent knows what there seller is up to and if they are going to help them, they may have the “courtesy” to let the agents know that have buyers for the property.(just a thought 🙂 )
However, It is usually figured out when the short sale seller is contacted for more paperwork or updated information (utility bills, paycheck stubs etc…) and the short sale seller does not provide them in a timely manner.
Sometimes, when the short sale agent is not able to fulfill the time frames the banks require, the short sale has to be started all over again.
Which could results in this particular short sale not finishing all together or in timely delays.
Be safe – and thanks for reading one of the most prevalent short sale games that exist in the Short Sale world.