Short sales: The odds are against cash-strapped homeowners

Short sales: The odds are against cash-strapped homeowners

Cash-strapped homeowners who owe more than their properties are worth often try to get out of trouble by selling for less than the mortgage amount and asking lenders to forgive the difference.

It sounds simple. But so-called short sales rarely are.

The deals frequently are exercises in frustration, as lenders take weeks or months to consider offers. Exasperated buyers walk away during the delays, and properties linger on the market, prolonging the housing slump and the recession.Many agents refuse to show short sale homes to clients. Real estate attorneys struggle to penetrate the bank bureaucracy, complaining that files pass from one employee to another. In some instances, lenders approve short sales, only to later reverse the decisions. Meanwhile, banks partly blame borrowers, saying they don’t provide necessary information fast enough.

“I’d rather take a herd of elephants through a quicksand bog. It’s easier,” said Edward Goldfarb, an agent in Broward and Palm Beach counties.