I drew the Reno short (sale) straw this morning and am going out on yet another upside down Reno home in default. Yes, it quacks like a duck so it must be a duck as it qualifies for a short sale (behind in payments).

I may take this one instead of referring it out to a Rookie Agent as it is in an area in Reno I farm and a friend of a client. (Yes, I do have exceptions to my no short sale rule). So far, the mls hasn’t cracked down on these hypothetical prices (with short sales) so it is possible to just about put any bait and switch price.

The mls has created a mandatory field with a special conditions of sale that has to be filled out. It is great for isolating them either for people looking for shorts and REOs or not looking for them. Generally, I refer bottom feeding gas wasting chasers of short and REO sales to Rookies as well. That is after refering them to Craigs List and all of the other sites if I can’t get rid of them. However, if you are reading this blog, you are probably indirectly associated with my sphere of influence so I would of course be happy to help you with either or. Since the phone calls and e mails from buyers have picked up, I have had to hire another assistant to process the buyers requests so we are up to speed in taking on more business.

The unfortunate thing is that many of these Reno short sale prices, the bank may not go along with. Of course the bottom feeding buyers (yes we are at the bottom in So Reno 89511 zip), use these hypothetical prices as leverage to drive down other homes not in default.

I guess the biggest difference without getting into it too much is that shorts are again, hypothetical (the bank may or may not take it), you are dealing with multiple parties; Homeowner, 1st loans, 2nd loans etc. There is not as much structure to the transaction and they are generally buried in financing, liens etc.

The good thing with REOs is that that you are generally dealing with one entity and it is a black and white process, 2nd liens generally fold and you are back to the 1st, some but not all liens get wiped out.

With REOs, most of them want a certain amount of paperwork done in advance; pre qual, inspections etc. My attitude is what they want and what they get from my clients is another story. I have been through this drill back in 82 and have presented seminars on it before it was trendy and prevalent. I will be presenting an REO seminar this spring for the Reno Real Estate Investors Group, I will keep you informed of the date and post it on this Blog, U-Tube etc.

By law, Reno Realtors and all other Realtors have to submit all offers in a timely manner. If I have a client making multiple offers on many Reno REOs, I forgo a lot of that kind of time consuming paperwork the bank requests to get it to the bank.

There are enough of these (Reno REOs) around that we are not going to be led around by the banks. Many times while other people jump through hoops, yours will be the first offer on their desk if you just write it up. I do have to remind some of these Agents that bank policy doesn’t supersede law sometimes. If it is a highly desirable property, we follow up with their requirements in a timely manner of course.

I will add some more content in the following weeks to this topic, this is just a very brief overview of the differences of Reno REOs in comparison to Reno short sales. I don’t want this to become a foreclosure topic heavy blog however as there are plenty of regurgitating foreclosure canned stats blogs out there.

I tend to dwell on the positive and not on negative foreclosure numbers of people who financed 90 to 100% in 04-07 and now are creating this media frenzy. I would be happy to forward a separate e mail of foreclosure data if anyone desires as I receive it myself.

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Your Reno Realtor

Ron Bell

Broker-Salesperson

Coldwell Banker Village Realty

775-750-5256

Filed under: Reno Foreclosures/short sales