Short sale with another offer on it (short sales, foreclosures)

[Rynnakat]

Hey guys!

We got preapproved (finally the credit is high) and toured a house that we found out was a short sale. The owner was actually there and let us know that there is an offer on the house and the listing agent confirmed this on the phone. The listing agent has been working for 4 months on the house and shes actually going to loose her commission when it goes into foreclosure apparently because the bank goes with a new agent so all her hard work is for nada.

The current bid has all their docs ready, all paperwork done and the house is due to go into foreclosure this friday.

We put in a full price offer today at $169,900 and asked for 3% closing. Any chance that the bank will still consider our offer? My lender says maybe but two realtor friends think no. I'm thinking the current standing offer may be a lowball.

Any thoughts for your favorite researcher? I'm trying to stay calm and not get excited because we already had another house sold too quickly for our offer. This house is fun though. Already has a built in movie theatre with sconces on a dimmer. LOL

Thanks guys! If needed the link is: 10239 Mossy Brook Ln, Cypress, TX 77433 - Zillow

Kat

[modster]

I would sooner eat dirt than do a short sale.

[AlexTx]

Was the short sale ever approved by the bank?

If not, the bank may not approve ANY offer made.

[Rynnakat]

Yes the short sale is approved by the bank and the house is actually going into foreclosure after friday.

[Johnny S]

One of the most obnoxious things about a short sale is that list price has no direct connection with the bank's bottom line price. List price comes from the listing Realtor (typically determined as the absolute lowest price they can justify to the bank). No decision makers at the bank even look at a short sale scenario until there is a written offer on the property.

Also - you'll often hear that the bank has 'approved the short sale'. Usually that statement really means 'the bank has confirmed that they will consider offers for a short sale'. When the bank really approves the short sale, it means they approved an offer and it's ready to close.

If the bank was seriously considering the short sale, the foreclosure would be put on hold. If the bank isn't considering the current offer, and the foreclosure is really scheduled for next Tuesday, it's unlikely they'll get to your offer in time to stop the sale.

$169k is a pretty aggressive list price for that property. It's feasible though.


If you end up moving forward with a short sale, this may be useful - detailed info about buying short sales.

[AlexTx]

It sounds like the bank hasn't approved the 169k amount (I'd ask the realtor where they came up with that amount).

It's my understanding that generally a bank will not pay toward your closing costs. I believe that's how it works with foreclosures anyway.

The good news is, you still have a chance to get the house after it's foreclosed on. And it will probably be an easier process than a short sale.

[SilverWings]

My dad had recently tried to purchase a short sale in Florida. After dragging things out for months with him waiting for things to happen, the bank decided they didn't want to do it anymore and pulled out. I would not go anywhere near a short sale after the stories he told me about it as they are just a complete pain in the [tush]. But either way I wish you the best of luck.

[Rynnakat]

We found out there is a cash offer on the home, and the listing agent says its low. So we modified our offer to $164,000. We thought we would hear by Friday, but nothing so far. I'm still hopeful that the bank will take it, the house is very big, and has that theatre room ready for my 500 dvds. I'll keep you posted and thanks for the excellent info!!

[smartygurl]

WOW! 500 DVD's.. can I come over and watch movies with you?

[westres1]

I have my doubts on the closing costs. Not typical in a short sale or foreclosure