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Old 01-27-2008, 03:40 PM
 
144 posts, read 497,402 times
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I am going to be making an offer on a short sale today. Any tips or advice? Things I need to watch out for? My new agent seems really on it, but I want to be well-informed in case she misses something.

They are asking $369,000. What do you think we are safe in offering? We want to offer $330,000 or $340,000. It needs a little work, but nothing horrible. It needs landscaping work in the back and paint, possibly new carpet, possibly a new fence. The roof is a little older as well.
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Old 01-27-2008, 03:49 PM
 
Location: Virginia Beach, VA - 1978 to Present
126 posts, read 410,398 times
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Quote:
Originally Posted by wcaamyg View Post
I am going to be making an offer on a short sale today. Any tips or advice? Things I need to watch out for? My new agent seems really on it, but I want to be well-informed in case she misses something.
In my experience it seems to take forever to negotiate as the lender is often out of state. The paperwork (addendums, riders, etc.) is at least double on the ones I have been involved in. You would think that the lender would act fast but they never seem to. I would not fear it, just be patient, IMO.

Good Luck,

-Mark
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Old 01-27-2008, 03:57 PM
 
144 posts, read 497,402 times
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Yes, we've been told it takes anywhere from 2 weeks to 2 months or more. I'm hoping it will be closer to the 2 weeks estimate.
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Old 01-27-2008, 04:23 PM
 
Location: Palm Coast, Fl
2,248 posts, read 5,857,355 times
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Who's asking $369K? It's listed at $369K or the mortgage balance is $369K or it's comping out at $369K?
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Old 01-27-2008, 04:25 PM
 
144 posts, read 497,402 times
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It's listed at $369K
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Old 01-27-2008, 06:17 PM
 
Location: New York, Westchester
491 posts, read 1,457,613 times
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Default i am doing a short sale for a client

and we just passed the 3 month mark with no light in sight...................I doesn't matter how good your broker is....it all falls on the selling broker....if they are no good you are screwed................
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Old 01-27-2008, 07:45 PM
 
15,637 posts, read 20,759,203 times
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We are waiting almost 2 months, according the the seller agent this is due to the investor trying to work out a deal for judgment with the seller. She paid $ 220 K and we are offering $ 150 K. They countered it back to $ 168 K and we said no. Now they agree with the $ 150 K if the seller is willing to take a judgment on which they are working on.
With another short sale we are working on the negotiator will be appointed within 10 after we signed the contract. We will see if this is going to happen. Sellers agent has done a lot of short sales and seems to be good at it.
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Old 01-27-2008, 11:24 PM
 
37 posts, read 144,213 times
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Default The Truth About Short Sales

Quote:
Originally Posted by westchester View Post
and we just passed the 3 month mark with no light in sight...................I doesn't matter how good your broker is....it all falls on the selling broker....if they are no good you are screwed................

I disagree. I've been the listing agent for several short sales over the last year. The listing agent is just as powerless as the buyer's agent. It's all on the bank. The representatives at most banks are difficult, if not impossible to reach. When you do reach them, they say they are waiting on the investors to make a decision. The loss mitigation officer is not the final say-so on the offer. You must wait for the investors to meet and give their okay. Who knows how long that can take. You think they would want to sell the property quickly and get it off their books. My guess is, that they have so many properties going into pre-foreclosure, that they don't have the staff to keep up with them.

Also, the loss mitigation officer that you originally are in contact with, is frequently changed to a different loss mitigation officer without you even being kept in the loop. That's when they KNOW you are representing the seller!!

I had an offer come in on one property which I forwarded to the bank and didn't hear a word for a couple of weeks. I called and called and left messages. I finally heard back from the bank officer that he was no longer handling the file and the new loss mitigation officer was on vacation. Fast forward a couple of weeks later. . . still no call. Many calls later, about 2 months after the offer came in, the original loss mitigation officer called me to stay he had "dropped the ball" and had forgotten to give the new L.M.O. the file. (It had gotten "buried" on his desk.) Needless to say, the buyers got frustrated and went on to a new property.

If there is a 2nd or 3rd (yes, that happens) loan on the property, then double or triple your headaches, because all banks have to be in agreement for the short sale.

This process is not for the faint of heart. All parties are virtually powerless, except of course the bank and the investors. As a result, I've given up listing short sale properties. The amount of time involved in phone calls alone is staggering and it is the most frustrating experience even for the most experienced Realtor.

Best of luck to all. If the stars all align, you might get a great property below market value.
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Old 01-28-2008, 12:26 AM
 
106 posts, read 259,479 times
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I made an offer on a short sale on 12-31....I know that there is atleast one other offer, and I was told I have the better offer. I was also told last week that the bank was in the process of reviewing the offers. Can anyone give me a guestamate on when I should hear back from the bank? How long does the bank take to review the offers? Do you usually hear back the week after they're reviewed?

One thing that I've noticed about my area is that there are a ton of short sales, and even if this one doesn't pan out, there are atleast 100 more in my price range that are either ss or REO. Actually, on the MLS in my price range, probably 90% are listed as ss or REO. At this rate, it could take all year if I have to put in an offer on another home. I'm kinda stuck in limbo, just waiting.
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Old 01-28-2008, 09:53 AM
 
Location: Palm Coast, Fl
2,248 posts, read 5,857,355 times
Reputation: 969
Quote:
Originally Posted by wcaamyg View Post
It's listed at $369K
Ok, here's the thing. Is the listed price the value of the house according to comps in the area or has it already been discounted. What is the loan amount due on the house? How long has that loan been in place? A year, two years, more? Is there PMI involved with the loan? Is there one lien holder or two? Has the seller's situation been approved for a short sale? Between the loan balance and the market value of the property, does it make fiscal sense to the bank to do a short sale vs letting the property foreclose?
If the listing price is already way discounted from the loan due and or market value, why would you offer less? Are there other offers on the property? If you do go into negotiations or put an offer in will the listing go as contingent or pending or will it still be active? Are you prepared for that while you are doing all this work and waiting that another person can just come in and put a better offer in? How far along in the short sale process are they? Are you prepared for if the loan gets sold that the whole thing has to start from scratch? Do you know that the 'bank' (a person there) can approve it and then at the last minute the 'bank' (another person there) can say, heck no! ?

I was reading a post from an investor/real estate agent on another forum who said that what he's learned to do is just keep putting offers in on all kinds of homes in the short sale process because it's been his experience in the past 2 years that only 20% of the deals acutally work. So he puts offers in all over the place and which ever one works, he takes it.
I was reading a blog from a sales associate who is presently handling over 20 short sales for his customers and the strain of not getting answers and having to explain this to his sellers is killing him...and he's been doing this for over two years full time...he's experienced. Every bank is different and every deal is handled differently even within the same bank.
It sometimes has to do with the sales associate, it sometimes has to do with the PMI, it sometimes has to do with the 2nd lien holder, it sometimes has to do with the people employed by the primary lender, it sometimes has to do with the volume of deals on the table, but 99% of the time it takes time, patience and heck of a lot of fortitude.
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