Property listed as a short sale on the market for 500+ days. HOW is this possible? (Cape Coral: foreclosures, insurance)

[equalrightsforeveryone]

The moral of the story is that if you don't want a bunch of headaches stay away from short sales they are a mess and the money that you offer could be tied up for months. Stick with foreclosures or regular sales if you must buy right now.

[Jkgourmet]

I still don't understand how a property could be in a short sale status for so long. It's in that status because the owner isn't making payments, right? Why hasn't the lender foreclosed already???

[equalrightsforeveryone]

Originally Posted by Jkgourmet

I still don't understand how a property could be in a short sale status for so long. It's in that status because the owner isn't making payments, right? Why hasn't the lender foreclosed already???

Some times people continue to make payments, but they want to get out from under the negative equity. In other words they are paying for a home that is worth less that the mortgage but they can afford to make the payment.

From the banks point of view they don't care, they get their mortgage payment as long as they don't go in to foreclosure.

From the owners point of view in most cases it would be better for them to go in to foreclosure.
It isn't a good thing but sometimes thats the way it is.

[Big House]

Originally Posted by equalrightsforeveryone

Some times people continue to make payments, but they want to get out from under the negative equity. In other words they are paying for a home that is worth less that the mortgage but they can afford to make the payment.

From the banks point of view they don't care, they get their mortgage payment as long as they don't go in to foreclosure.

From the owners point of view in most cases it would be better for them to go in to foreclosure.
It isn't a good thing but sometimes thats the way it is.

There are a ton of other reasons, why houses "short-sales" can take months and months to sell. Some times they are trashed, and no one is interested in offering on it when they see it doesn't look like it was when it was originally put up for sale. Often it as multiple lenders that won't buy-off on the sale, still wanting to get their piece of the pie. These don't get worked out until an actual court ruling foreclosure happens. Sometimes they go up for short sale, as this poster mentioned, and the sellers still struggle along to make payments even though they are underwater. Sometimes, the price offered by the bank is a low-ball listing price and they really don't intent to sell it at the price offered and wait to get better offers in. Sometimes, people make offers, and then can't get the financing - banks are tough on lending right now.

People that offer on short sales often - get very frustrated as a result. Many times while they wait and wait and wait and wait for things to go through the process, they find a better or as good a deal with another listing or a house that has gone through the foreclosure process already. There are plenty of houses to choose from right now, and going through this process is very frustrating.

Only occasionally do people buy short-sales and get a great / fantastic deal. It happens, but they will often tell you that the price changed, and the deal wasn't what it was when they started. A few have done well and got a great deal - but mostly that isn't the case. The lenders are motivated to let the property sell, but they want to get as much for the property as they can as well.

[equalrightsforeveryone]

Originally Posted by Big House

There are a ton of other reasons, why houses "short-sales" can take months and months to sell. Some times they are trashed, and no one is interested in offering on it when they see it doesn't look like it was when it was originally put up for sale. Often it as multiple lenders that won't buy-off on the sale, still wanting to get their piece of the pie. These don't get worked out until an actual court ruling foreclosure happens. Sometimes they go up for short sale, as this poster mentioned, and the sellers still struggle along to make payments even though they are underwater. Sometimes, the price offered by the bank is a low-ball listing price and they really don't intent to sell it at the price offered and wait to get better offers in. Sometimes, people make offers, and then can't get the financing - banks are tough on lending right now.

People that offer on short sales often - get very frustrated as a result. Many times while they wait and wait and wait and wait for things to go through the process, they find a better or as good a deal with another listing or a house that has gone through the foreclosure process already. There are plenty of houses to choose from right now, and going through this process is very frustrating.

Only occasionally do people buy short-sales and get a great / fantastic deal. It happens, but they will often tell you that the price changed, and the deal wasn't what it was when they started. A few have done well and got a great deal - but mostly that isn't the case. The lenders are motivated to let the property sell, but they want to get as much for the property as they can as well.

I agree but if you don't want the hassle stay away from the short sale.
Biggest problem I have is, that your money is tied up in the deal, while often time you find better properties.

My motto is that I will give my money to the first person that accepts my deal.
And when I buy I make offers on more then one home after all the sellers can get multiple offers and make multiple offers and who ever agrees to my terms first get the money, the other offers I cancel.

[Cobalt502]

It takes about $1,000.00 to put an offer in on a Short Sale, that is not exactly putting ALL your money out there?

[Cobalt502]

If you put multiple offers in on properties what would you do if two of them accepted at the same time?

[hiknapster]

Originally Posted by Cobalt502

If you put multiple offers in on properties what would you do if two of them accepted at the same time?

Originally Posted by Cobalt502

It takes about $1,000.00 to put an offer in on a Short Sale, that is not exactly putting ALL your money out there?

I thought the same thing. Legally, if you are putting in this many offers, if they are accepted it is a done deal. I guess you'd have to shell out the money for inspections, hope to find something wrong and back out, providing you had the inspection clause in the offer.

My guess is this was a hypothetical statement not actually based on real events. It seems to be a trend.

[Cobalt502]

Quite honestly Hik I think I have had all I can take of the insanity?

I have never in my life witnessed such obstinance by one person...seriously!

[equalrightsforeveryone]

Originally Posted by Cobalt502

If you put multiple offers in on properties what would you do if two of them accepted at the same time?

Some times that happens, then I simply choose the property that is the best deal for me. Any one that believes that the real estate agents have anything other that their own interested at heart is foolish at best.

All the buyers and sellers agents care about is to close the deal as fast as possible to get the commission. I have yet to meet the real estate agent that truly put their own interest aside and puts their clients interest first, I'll let you know if it ever happens

And there is an other trick people should utilize this when buying with a mortgage. Get pre-approved by more then one mortgage lender that way you have more then one interest rate to choose from when it comes time to lock the rate in. I have done this previously and it work I have saved up to a quarter of a point on a mortgage, this over a 30 year period is a substantial amount of savings.
And in this climate with there being a very limited pool of people that will qualify for a mortgage it should work even better than before. Cause they want the business. Just remember that no one looks out for your interest if you don't do it yourself.