San Mateo County has its share of so-called short sales. To be clear, we don’t have the glut of short sales or bank owned homes as we see in places like Sacramento, Modesto and Stockton. San Mateo County’s inventory of distressed properties is indeed very modest.
Just How Many Alleged Short Sales are For Sale in San Mateo County?
As of this entry, there are 132 single family homes and 55 condominiums listed in the Multiple Listing Service as “alleged” short sales. I say alleged because a short sale is not a short sale until the seller’s lender approves and agrees in writing to accept less than the amount the seller owes them. So, we tend to see many homes called short sales in spite of the fact that the seller’s lender has not yet approved the sale…and may not ever approve the short sale.
Ask These Questions Before Writing an Offer
Rather than waste our time and the time of our clients, we recommend that you as we do and ask the following questions of the listing agent:
- Who initiated the short sale – the seller or the listing agent?
- Has the homeowner stopped making payments on the loan?
- Has the bank received the seller’s short sale application package with the hardship letter and all the supporting documentation?
- If so, have they approved the homeowner for a short sale in writing?
- Has the seller agreed to accept all of the bank’s conditions to the short sale?
- How was the listing price established – broker price opinion or comparative market analysis – and has the bank approved the price?
- Are there any junior or subordinate lien holders?
- Have all lien holders agreed to the short sale?
- Is there Primary Mortgage Insurance (PMI) on the first mortgage?
- Have you received any other offers?
- Has a loss mitigator been assigned to the case?
- How long do you estimate the loss mitigator will take to respond to our offer?
- Has the loss mitigator ordered another broker price opinion yet? If not, when will they?
- When is the scheduled trustee’s sale?
- Has the bank postponed the trustee’s sale in writing?
Why Ask The Questions?
The answers to these questions will help us determine whether we wish to propose an offer or pass because there is a high likelihood of failure. We have no desire to put our clients through the stress and emotional turmoil associated with a short sale transaction, and we have no interest in wasting your time and energy chasing a fantasy. Most short sales are unattainable. Nationally fewer than 20% of the alleged short sales succeed so a statistically a positive outcome is remote at best.
San Mateo Short Sales for Sale
Click on the map below to search San Mateo County short sales.
Bank Owned Homes for Sale in San Mateo
Click on the map below to search bank owned homes (post-foreclosures) in San Mateo County.
Other Posts You May Enjoy
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- Why are REOs Better than Short Sales?
- REOs – Profit Opportunity or Prescription for Frustration?
- Where Can an Investor Find Profitable Rental Properties in the Bay Area?
- Buy Foreclosures to Get a Good Deal in San Mateo County?
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Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.