short sale offer (mortgage, bad credit, attorney)

[katerina]

Could anyone help me?

A week ago we put an offer fort short sale with Homecoming Financial Network through listing agent. The official asking price was 350 kk and our bid 325 kk (house is listed for 200 days with no offer yet). Approx. price of the house is around 450 kk. The owner took two mortgages, first for 620 kk (full selling price) and second for 90 kk - both with above said bank. Today our agent called and said someone else offered same amount as we did but cash and to get the house, we have to increase our offer. So we did, by phone - 350 kk. Couple hrs ago, agent called to tell us it looks good and we shall hear the answer soon. By studying I learned that banks usually accept no less than 90% of the real house value and the procedure takes much more than couple hours. I also learned about cases when listing price is not the actual price asked by bank. Could this be our case? Does all of this looks realistic to you?

Thanks for your comments.

[ndraves]

Short sales can be confusing. I'm not an expert, but am a Realtor and know a little about these both in my business and personally. I'm not clear about all the $ amounts you quoted but I know banks want what they are owed, period. Anything less has to be negotiated, however, banks have been known to discount 90%-40% of value. Every case is different These days, they are buried in non-performing loans. As a buyer, you should be working with a buyers' agent. If you are working with the seller's agent, you are not being fully represented. The sellers agent, if they are a member of NAR, has certain obligations to both parties, however, you should feel free to ask your questions. The negotiating part can take 2 hrs or 2 weeks, it just depends. After the fact, however, there is a bunch of paper work that the bank will want.

[Wendyb0077]

All lenders are not the same and their policies vary. Is the house in foreclosure? Who owns the house at this point? When purchasing a home like this YOU should have a Real Estate Attorney helping you. It is very unlikely that you would get an answer in a couple of hours. Maybe the seller will agree to the price, but the lender has to take into consideration all of there costs before they will make a decision and they are in during business hours. I am not an attorney. Call one! ui=

Originally Posted by katerina

Could anyone help me?

A week ago we put an offer fort short sale with Homecoming Financial Network through listing agent. The official asking price was 350 kk and our bid 325 kk (house is listed for 200 days with no offer yet). Approx. price of the house is around 450 kk. The owner took two mortgages, first for 620 kk (full selling price) and second for 90 kk - both with above said bank. Today our agent called and said someone else offered same amount as we did but cash and to get the house, we have to increase our offer. So we did, by phone - 350 kk. Couple hrs ago, agent called to tell us it looks good and we shall hear the answer soon. By studying I learned that banks usually accept no less than 90% of the real house value and the procedure takes much more than couple hours. I also learned about cases when listing price is not the actual price asked by bank. Could this be our case? Does all of this looks realistic to you?

Thanks for your comments.

[jbravo]

Originally Posted by Wendyb0077

All lenders are not the same and their policies vary. Is the house in foreclosure? Who owns the house at this point? When purchasing a home like this YOU should have a Real Estate Attorney helping you. It is very unlikely that you would get an answer in a couple of hours. Maybe the seller will agree to the price, but the lender has to take into consideration all of there costs before they will make a decision and they are in during business hours. I am not an attorney. Call one! ui=

Got to agree with Wendy!

[floridasandy]

listing prices mean nothing. you can get an idea by looking up the tax records in florida, and then you can see the entire purchase history on the house.

[katerina]

Well, thanks for your opinions, we just were so exited..
Anyway, what surprised me the most was another bid the bank received not only exactly a week after our but for the exact amount we offered but cash. It sounds pretty weird to me (especially if, as the agent said, they did not have anything for this house for 200 days..).
And I do agree with you all. It seems logic that what matters is how much money is owed and not the listing price.
And also, we checked the background of the house and I don' t understand how come can someone get such high loan on the house (in this case more than 140% of the value).. It cannot end otherwise than as short sale (this case) or foreclosure.

[Crazy G]

Now is NOT the time to be excited....Now, is the time to be hard headed...

Trust me!!! """THEY ARE"""

THE ABSOLUTE FIRST THING YOU HAVE TO KNOW, ""WHICH NOBODY TALKS ABOUT""""......is......

What does it cost to build a house today?????

Forget what the mortgage is/was....

What is the house worth????

Certainly NOT what the previous owner paid for it.....and if that's true, how does that affect the price of the house next door, or down the block!!!!

Come on....Clear you brain, of all the fairy tales the realtors have been telling you...

Under the current market conditions, what is the lot worth, and how much would a contractor charge you to build a house just like it!!!!

IF YOU GET THE ANSWER TO THAT, THEN YOU'LL KNOW!!!!

[Wendyb0077]

With your infinite amount of wisdom sir, I'm sure you know that especially in this market. NO lender is going to lend the money on this home without an appraisal. Maybe even two and a Broker BPO. She won't pay to much for the house. The new mtg company wants to protect themselves.

Originally Posted by Crazy G

Now is NOT the time to be excited....Now, is the time to be hard headed...

Trust me!!! """THEY ARE"""

THE ABSOLUTE FIRST THING YOU HAVE TO KNOW, ""WHICH NOBODY TALKS ABOUT""""......is......

What does it cost to build a house today?????

Forget what the mortgage is/was....

What is the house worth????

Certainly NOT what the previous owner paid for it.....and if that's true, how does that affect the price of the house next door, or down the block!!!!

Come on....Clear you brain, of all the fairy tales the realtors have been telling you...

Under the current market conditions, what is the lot worth, and how much would a contractor charge you to build a house just like it!!!!

IF YOU GET THE ANSWER TO THAT, THEN YOU'LL KNOW!!!!

[CJFlorida]

What proof do you have of this other 'bidder'? What do you know about their finances? Are they even real? If so, are they legitimate buyers or just playing around?

This sounds like you are getting ready to catch a falling knife. Don't be fooled into negotiating in this market. The big problems for housing are just getting started. The wave of foreclosures and short sales is just picking up steam. Read the housing bubble blog, housing panic, and other housing websites. They have not steered me wrong.

Buy if you want to. But write this down and see if I am right. A year from now, when you price a comparable house, prices will be under $300,000.

And please ignore the poster who said , "she won't pay too much for the house, the mortgage company wants to protect itself". That is nonsense. There are less funny loans being written today than a year ago. But they are still out there. The lender will look at your income and financial situation. If the underwriter decides you will be of low risk to bail on the loan, even when prices drop a lot more, they will loan you the money. A person with a solid history is a good risk for them. They don't care if that house is worth 30% less in 2 years. If you have bad credit and finances they would....but good history, you will get the loan. If that house is worth much less in a year, are you going to run out on the loan? No, you will keep on paying it...right?

In every bubble deflation, there are always people who buy way too soon.

[Mom2Feebs]

Originally Posted by katerina

Could anyone help me?

A week ago we put an offer fort short sale with Homecoming Financial Network through listing agent. The official asking price was 350 kk and our bid 325 kk (house is listed for 200 days with no offer yet). Approx. price of the house is around 450 kk. The owner took two mortgages, first for 620 kk (full selling price) and second for 90 kk - both with above said bank. Today our agent called and said someone else offered same amount as we did but cash and to get the house, we have to increase our offer. So we did, by phone - 350 kk. Couple hrs ago, agent called to tell us it looks good and we shall hear the answer soon. By studying I learned that banks usually accept no less than 90% of the real house value and the procedure takes much more than couple hours. I also learned about cases when listing price is not the actual price asked by bank. Could this be our case? Does all of this looks realistic to you?

Thanks for your comments.

Go find yourself a real estate agent, and pronto. You have no one representing you; the listing agent is working in the best interest of the bank and property. Nothing looks realistic when you're solely dealing with a listing agent unless you're an agent yourself. Not only that, but the listing agent is probably more than thrilled you're alone as they will get the full commission. If you have an agent they have to split it, whatever it may be. That means you don't pay for representation, you do know that, right?

Good luck and hopefully it will work out.