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Old 08-04-2010, 12:31 PM
 
4 posts, read 9,251 times
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Hello All,
Been looking at houses for quite a while now, as Ive been renting forever and just keep starting over everytime I move. Looking for a long term move and I ending up putting a bid on a short sale in the area that I wanted to live and the style of house I was looking for. I have been reading on short sales and there not all that confusing but leads to a very miserable existence once into it. Just wondering everyones story and timeline into which they submitted the bid and actually started moving in. Very worried I'm going to be sitting here for 4 months just to get shut down for the bid. Also on a short sale did you get a counter offer? Let me know your stories. Suggestions are great too. Thanks
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Old 08-04-2010, 02:16 PM
 
Location: Philadelphia
244 posts, read 636,842 times
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There is no set answer for this. I will tell you that I was working a short sale with BOA before equator was implemented. It took 4 months for nothing. Once I was informed about equator a negotiator was assigned a counter offer cam back and was accepted in about 30 days. Not sure what bank you are working with or if your agent knows about equator but if they don't I would bring it up to them as they service a few banks.
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Old 08-04-2010, 03:37 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,882,047 times
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Try using the City-Data search feature for "short sale". Should find lots of stories already discussed.
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Old 08-04-2010, 03:55 PM
 
Location: Chciago
721 posts, read 2,654,854 times
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Quote:
Originally Posted by rjrcm View Post
Try using the City-Data search feature for "short sale". Should find lots of stories already discussed.
Don't waste your time look for foreclosures instead. Short sale you can wait for a year and never hear anything back, foreclosure you generally hear in 24-48 hours.

I had six short sales all through before giving up on them. One in particular I offered asking price. They wouldn't take it because they didnt have three total offers on the place. They finally got the two other offers both below mine, still wouldn't take my offer at their asking price. A year down the road it wound up going to auction and they got 20k less than I offered, they could have had it off their books a yeart earlier and got 20k more but nothing they do with short sales makes sense.

Also, while your sitting around months on end waiting to hear if your offer is accepted they will also accept offers from other people as well.

Unless your an investor who has money to go around putting low ball offers on palces not caring if you get the place dont bother. If you are an investor its a good deal, put in a low ball offer if you get it you got a steal if you dont who cares but if your lookign to get into a residenence dont do a short sale.

I dont know the states but I've heard less than 50% actually go through, most wind up going into foreclosure or are sold at auction.
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Old 08-05-2010, 05:48 AM
 
3,576 posts, read 6,049,754 times
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Short sales are screwy at best. When we looked at short sales in Florida in late 2008/early 2009, we put bids on homes and kept on waiting and waiting.

Finally we just went with a regular sale on a homeowner who had a ton of equity in their home and priced their home as low as a short sale and we closed within 30 days. (but it's pretty rare to find homeowners in Florida who have a lot of equity and willing to price their home agressively)....but the old saying was price it right and it will sell. Those homeowners only had to wait 2 days on the market cause they were priced right.

Than 4 months after we closed on our home, we looked at a previous short sale we had offered $600K to (they had priced it at $650)....The bank rejected our short sale but accepted someone's else $560K offer. Weird....but that's why short sales are all messed up.

Honestly they need to get rid of the temporary law forgiving debt on short sales and go back to the the good old days where the banks would just send the short sellers a 1099 that they would pay taxes on the debt owed. That's a pretty good deterrent to prevent short sales and either try to save the home or just let it go into foreclosure to make for easier sales.

Why? Pretty obviously. People think they can get away with short sales when the temporary 2007 mortgage and forgiveness act only forgave debt on primary homes used with first money purchases. Now these days you have short sellers who either cash out refinanced or took out home equity loans to fund lifestyle choices instead of renovating the home (thus complicating short sellers).

I just can't wait till Dec 31st 2012 when the temporary debt forgiveness law expires and we go back to the regular days. There is a reason hardly no one has ever heard about short selling until 2007. Once Congress created a get out of jail card, people took advantage of the law.
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Old 08-11-2010, 03:51 PM
 
76 posts, read 176,937 times
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Every short sale is different. But heres ours:

Put offer in the 1st of April. Seller accepted our offer and submitted it to the bank on the 5th of April.

This week we received a counter offer from the bank. (accepted our offered price but lowering commission for our agent and refusing to pay for Home Warranty... which we expected both of.)

We have an estimated closing date of September 15th.... So... if we do close then it will be 51/2 months from start to finish.

Its frustrating... and u do need lots of patience... but... this was a house we didn't think wed have a shot at and got lucky that it was a short sale because we could afford it.
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Old 08-12-2010, 08:26 AM
 
Location: Golden, CO
2,181 posts, read 5,613,637 times
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I think you need to have an agent who isn't afraid of a short sale, isn't afraid to be persistent when it comes to checking in with the bank, and you also need someone who is good at following directions and can follow the bank's directions to a T when submitting all of the materials that are needed when the offer is made. It also helps when there is only one bank and one loan involved, meaning, no 2nd mortgages or anything like that.

I made an offer on a short sale and it was moving along until the bank declined to extend the sale date one more time and instead sold the place at trustee auction for 20K less than what I offered! I made an offer on June 23 and the offer was assigned to a negotiator and under consideration within a week. BPOs were ordered and done and the process was moving along smoothly, but then the place was sold to an investor on July 15th. I feel like everything went smoothly because my agent was comfortable with short sales and seemed 'on top of things' when it came to dealing with the bank. I think the short sale would have worked out if I had found the place sooner. Like the previous post says -- every short sale seems to be different. But that was my experience.
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Old 08-12-2010, 09:14 AM
 
Location: Log "cabin" west of Bangor
5,676 posts, read 6,747,035 times
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We bought our home through a short sale. We made the offer in July, were informed several days later that there had been another offer (lie or not? we don't know) and we had to make our 'best' offer, which we did and it was accepted. We did not close until the end of January the following year. We endured months of silence, requests for information were stonewalled or never even acknowledged. Our buyer's agent finally got someone to tell her that the holders of the first and second mortgages were fighting with each other over who was going to get how much money and we would be SOL until and unless they could come to an agreement.

In the meantime, the owners who were in default abandoned the property immediately after we made the offer. With Winter at hand, I decided to visit the property since I had put down money and had a signed agreement and felt I had the right to check on it. It was a good thing I did, since it had not been winterized and there was no heat. We had to kick and scream and threaten to get even a minimum of cooperation in attempting to preserve the condition of the property. Even so, there was a considerable amount of damage, some of which was not immediately apparent. We ended up replacing nearly all of the plumbing fixtures (one toilet still has not been replaced and is nonfunctional, I managed to repair the other), the dishwasher did not survive as it apparently still had water in it, which froze. There were other problems as well but I'm not going to list them all out here.

As others have said, it can be a hassle and very frustrating. It appears that you cannot be sure that the deal is going to go through until you are signing the papers. Only *you* can decide if you are willing to put up with what it takes, and if it is worth it. Maybe there are some deals that go smoothly, but if so I haven't heard of any yet. I'm not sure that I would have done it if I had known in advance what I would have to go through...or maybe I would have, had I been prepared and knew that it was not a sure thing- my expectations might have been different.

Good luck.
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Old 08-12-2010, 02:03 PM
 
268 posts, read 965,808 times
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I purchased one and it worked out well for me. It closed in 1 week shy of 6 months, and I never knew until 14 days prior that the bank had accepted my offer. It helps a lot to have a realtor schooled in short sales. That's all mine did.
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Old 01-02-2011, 08:51 AM
 
1 posts, read 3,916 times
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four months from offer to closing, two counter offers, banks did not budge, not a steal of a deal but a great opportunity. short sales are only for the patient.
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