I was recently talking to a member of the NAR staff who is looking to move closer to work. She mentioned that her REALTOR® discouraged her from looking at properties that are potential short sales. The reason? The agent explained that those transactions are difficult to close because they involved what she termed “funny money.”
In other words, the money from the sale is divided among various parties, which can delay the sale up for months.
We have heard from so many of you about this problem, and we finally have some good news to share.
As you know, last May, the Obama Administration announced that they would provide guidelines for short sales that would help improve the process. On November 30th, the Treasury Department finally released those guidelines, and we have posted a link to them – and to a FAQ – on Realtor.org.
As a recent article in the Wall Street Journal noted, the rules could help provide structure to a process that has been “chaotic.” I sure hope so.
The new rules don’t take effect until April, so until then, we’ll have to keep trudging along with the current process. But, this is a step in the right direction, and I am confident that we will see a much more robust market in 2010, as buyers return in force.
Now, if we could just get the banks to lend money. That’s a topic for another blog. – Vicki Cox Golder, 2010 NAR President