In Ventura County since January 1st 2008-October 26 2008 there have been 853 short sale homes for sale and only 471 of these short sale homes in Ventura County have actually sold.  I wrote an article earlier this year which explains what happens to all the short sale homes in Ventura County that don’t sell.

Many Ventura County home buyers who have made an offer on a short sale home voice their frustration and disappointment with purchasing a short sale home.  In few instances the home buyers have grown tired of waiting for the home sellers’ lender and have moved to look at other homes.

It is important to understand that in many short sale instances there are more than one lending institution involved in the sale of a home.  This is true in cases where the home owner has a 1st  and a 2nd mortgage or a 1st and a home equity line of credit on their home.   When two lending institutions are apart of a short sale both lenders have to approve the terms and the price of a short sale.  As it is to get an answer from even one lender is like pulling teeth, so imagine having two lenders involved in the sale of a home.

Normally lenders are not familiar with the Real Estate Market of the region in which the short sale property is located.

In many areas of the country including Ventura County a few Realtors have engaged in a deceitful practice in pricing short sale homes.  In order to attract many home buyers, some Realtors price the property facing short sale for an incredibly low price.

In a short sale the lender(s) has the final say on the sale price of a home.  When a home is priced too low the lender might not agree to offers near the “sale” price.  In such a case after the lender studies the short sale terms a raise in the asking price might be requested by the lender.  As the price is modified by the lender on a short sale home some home buyers who were attracted to the property because of the low price might walk away.  In other cases, the low price causes a bidding war and the home might actually sell for a higher price than the lender had expected to receive from the short sale.

If you are interested in purchasing a short sale home make sure your Realtor contacts the selling agent first and discover if the lender has ordered a Broker’s Price Opinion (BPO).  In a BPO the lender looks at what the homes have sold in the vicinity of the short sale home and bases the price of the short sale home accordingly.

If you are in the market to purchase a home in Ventura County please don’t hesitate to contact me, Mana Tulberg: 805-443-8898.