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We started the short sale processin August of 2009. Back in November the first mortgage holder approved the short sale. The second lien holder bank of America approved the short sale but wanted the seller to sign that has 5 years to come after him for the balance of the second mortgage. Of course the seller refused to sign. The seller received a notice that a date has been set for a Trustees Sale. I found the trustees sale info and it looks like the asking price is about $40,000 more than our contract which i assume is the amount he owes the first lien holder. I'm now communicating directly with the seller as my real estate agent doesn't seem to know whats going on. She emails the other realtor and passes on the info but thats about it. Now a few questions:
Should the buyers real estate agent be more involved? We told our agent we would be willing to up our price by $5,000 if it would push things along...never heard back from her.
For those with experience does this sound like it is dead and will actually go to auction or is this part of the game?
If it goes to auction is it more likely a formality before the Bank takes ownership? Per the seller we were the only people who looked at the house and put in a bid on the short sale (we bid about $10,000 higher than the listed price) and no one else has been through it.
Should we just wait to try and buy it after foreclosure?
Sorry for such a lot of info and questions. We are doing all of this cross country (relocating to Vegas)and this particular house has a few qualities that we really want and have had trouble finding in the current vegas market. Thanks for any info you can provide.
,,,Of course the seller refused to sign. The seller received a notice that a date has been set for a Trustees Sale. I found the trustees sale info and it looks like the asking price is about $40,000 more than our contract which i assume is the amount he owes the first lien holder. I'm now communicating directly with the seller as my real estate agent doesn't seem to know whats going on. She emails the other realtor and passes on the info but thats about it. Now a few questions:
Should the buyers real estate agent be more involved? We told our agent we would be willing to up our price by $5,000 if it would push things along...never heard back from her.
From your discussion, upping the price will not matter unless the 2nd lienholder waves the 5yr deficiency recovery requirement.
Just curious, what did you hope to accomplish by speaking directly with the seller? It's out of their control unless they agree to the lienholders terms.
For those with experience does this sound like it is dead and will actually go to auction or is this part of the game?
Sounds dead to me.
If it goes to auction is it more likely a formality before the Bank takes ownership? Per the seller we were the only people who looked at the house and put in a bid on the short sale (we bid about $10,000 higher than the listed price) and no one else has been through it.
Likely to go back to the bank. You are correct, the auction opening bid price is usually for the amount of the outstanding mortgage balance. In this case, it is probably way over market value, so no one will bid.
Should we just wait to try and buy it after foreclosure?
That's an option, but depending on the price, you may have a lot of competition when it gets listed for sale as an REO.
rjrcm, thanks for the info. It is very helpful in getting a better understanding of the process. In response to your question about why we spoke directly to the seller: We were not getting any info from our realtor other than " we should hear something next week" so we asked the seller what he knew. To date our realtor has not told us that there is a date for a trustee sale or really anything about the status. The seller told us that about a week ago.
rjrcm, thanks for the info. It is very helpful in getting a better understanding of the process. In response to your question about why we spoke directly to the seller: We were not getting any info from our realtor other than " we should hear something next week" so we asked the seller what he knew. To date our realtor has not told us that there is a date for a trustee sale or really anything about the status. The seller told us that about a week ago.
Thanks. In your agent's defense, she should not directly contact the seller if they have their own representation. She has to work through the seller's agent. The same goes for the listing agent if they wanted information from you. If the listing agent decides not to share certain information, that may be for the seller's best interest.
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