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Old 12-18-2008, 08:33 PM
 
Location: Cedar City, Utah
4,163 posts, read 5,787,503 times
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We submitted an offer on a short sale a week ago when we were visiting southern Utah. The buyers signed the offer, (since ours was the only one other than a low ball offer we were told by listing agent) We offered what the was said to be the "bank approved short sale price" and asked them to pay closing costs. We are putting over 50% downpayment on the home and yesterday the listing agent called our agent and said the bank wants verfication from our bank that we indeed are putting that much money down (which the bank gave them yesterday); The bank also said that they wouldn't pay our closing costs, which we decided is ok. Now today we hear that the house is going to auction Monday but the bank is considering our offer....HUH? This is the second time the home has gone to auction (once before in November and obviously it didn't sell) Meanwhile we never got a counteroffer from the bank. The listing agent was telling our agent all this information.
Is the bank better off taking our offer or having the home go to auction? Here are my questions:
Why would they have the auction if considering our offer? How does the auction work? Can we bid on it? Do homes usually go to an auction before forclosed upon or vice versa?
Any information would be appreciated. This is the 5th short sale home we have made an offer on and the furthest we have gotten so far.
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Old 12-18-2008, 08:34 PM
 
Location: Cedar City, Utah
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sorry for the bad spelling and grammer in that post, I sent it before proofreading it.
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Old 12-18-2008, 08:51 PM
 
21,727 posts, read 37,184,337 times
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It would be in your interest to go to the auction. The current 'owner' may have agreed to an auction, but it is possible that this no longer really a short sale but instead a full REO.
I would not necessarily bid ONE DIME, but I would bet dollars to donuts the bank will "open" at your offer. If no one matches that, they might drop the offer until they get bidders. If the 'frenzy' then gets the place up to your offer you need to decide if you can raise...

Tough situation.
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Old 12-18-2008, 09:24 PM
 
Location: Cedar City, Utah
4,163 posts, read 5,787,503 times
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Quote:
Originally Posted by chet everett View Post
It would be in your interest to go to the auction. The current 'owner' may have agreed to an auction, but it is possible that this no longer really a short sale but instead a full REO.
I would not necessarily bid ONE DIME, but I would bet dollars to donuts the bank will "open" at your offer. If no one matches that, they might drop the offer until they get bidders. If the 'frenzy' then gets the place up to your offer you need to decide if you can raise...

Tough situation.
I would go if I would of had more notice since I live in Oklahoma and it's in Utah, not to mention it being Christmas week with family in town. Do you have to be at the auction to bid? It seems to me like our offer isn't good enough even though it supposedly was "bank approved short sale price"
It is a tough situation and frustrating too. Thank you for your input though, it explains to me what could possibly be the reason for this.
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Old 12-19-2008, 10:48 AM
 
Location: Salem, OR
10,995 posts, read 18,889,531 times
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There are two different kinds of auctions. There are the foreclosure auctions in which the bank takes possession of the property and then there are auctions run by auctioneers where the home does not go back to the bank, but just an effort to sell a home.

You need to find out if this is a short sale or an REO. If the house was slated for auction in November it may have been delayed until December. That happens out here all the time. Listing agents ask for more time to sell the house.

Out here in a foreclosure auction you have to have CASH to bid. If you want to take out a mortgage you won't be eligible to bid on an foreclosure auction.
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Old 12-19-2008, 11:44 AM
 
Location: Cedar City, Utah
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Quote:
Originally Posted by Silverfall View Post
There are two different kinds of auctions. There are the foreclosure auctions in which the bank takes possession of the property and then there are auctions run by auctioneers where the home does not go back to the bank, but just an effort to sell a home.

You need to find out if this is a short sale or an REO. If the house was slated for auction in November it may have been delayed until December. That happens out here all the time. Listing agents ask for more time to sell the house.

Out here in a foreclosure auction you have to have CASH to bid. If you want to take out a mortgage you won't be eligible to bid on an foreclosure auction.
Ok good to know. I am still waiting to hear from my agent on what type of auction it is. According to my agent, the sellers still own the property, but I need to get more information. Thank you for your input
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Old 12-19-2008, 08:55 PM
 
Location: Southern California desert
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Chickrae, what is the difference in price between the short sale homes you are making offers on, and ones for sale with the sellers still owning it, i.e. not short sale or bank owned...might not be much difference and might save some stress just making an offer on a 'regular' home? We want to try to avoid any short sales when we start looking in Sac after the first of the year, too wierd unless it is the perfect house...
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Old 12-20-2008, 12:29 AM
 
Location: Cedar City, Utah
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Dogmom,
Not that much of a difference really, but all the ones we liked happened to be short sales. There was only one we liked that wasn't a short sale and we wanted to make an offer on that but it was still about 15,000 higher then we wanted to pay and the listing agent said they won't budge on the price. Then today of course our agent got a call from that agent and said now they will consider any offers.
We actually had good news today on the home in C.C....they canceled the auction, so we are feeling good that they may send information on our offer.
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Old 12-20-2008, 05:16 AM
 
Location: Southern California desert
8,540 posts, read 6,555,303 times
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I totally understand..seems with the short sales, anyway, the lack of communication would drive me crazy...and I doubt that bank owned is any better..You would think these banks would want to unload these properties wouldn't you? I guess there are so many everywhere, it's probably a nightmare working in a real estate department of a bank or lending agency right now...

One thing we seem to have in our favor is time...although we would love to time our purchase as the interest rates drop even more...that equals more house for me..we can't do anything until after January 7, hubby has an appointment here with an orthopedic doctor, both his shoulders, which had surgery in 2004 and the other this year, are wrecked again...after the appointment then we will head down to Sac and start the hunt..I would love to get moved before summer, I am tired of moving in the heat..we are lucky we have our little place here so that doesn't put us in a bind with closing dates, either. Counting my blessings right now, that's for sure..

Have a great day..later
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Old 12-20-2008, 08:15 AM
 
Location: Palm Coast, Fl
2,248 posts, read 5,907,099 times
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Quote:
they canceled the auction,
Happens here all the time. A couple of the banks will not even look at an offer unless it is slated for auction. Then they delay or cancel the auction and deal with the offer on the table. A weird way to handle it in my opinion but I have a bank I'm dealing with right now that does just that.
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