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Old 01-20-2013, 06:14 PM
 
261 posts, read 366,725 times
Reputation: 137

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This story hits home with me, short sales are frustrating. Hopes raised by requests for documents. Failure and refusal to keep buyers informed about the process so that you have no idea when this nightmare will be over. My family arrived in Las Vegas 6 months ago. We have tried to buy several homes. We have a short sale on the burner but it is getting increasingly difficult to wait while I watch home prices go up. The only thing I wonder about when I read that article is if the author ever made it known that he worked at a newspaper. It would be awfully tempting to threaten BOA with exposure for their shoddy practices especially when you get transferred to voicemail when you ask to speak to a supervisor.

Feel free to use this thread to post your short sale horror stories.

Quote:
No one could have prepared us for the hair-pulling frustrations of trying to buy a house in the Las Vegas marketplace.

I was moving my family from Kansas in 2012, and it seemed like a great time to buy a home. Throughout the valley, houses were available for a fraction of what they sold for only a few years ago.

There were traditional sales, foreclosures and short sales (where the lender allows the owner to sell the house at current market value, even if the existing mortgage is a lot more).

We decided to stay away from foreclosed homes and instead focused on either traditional or short sales.

Little did we know, a short sale is a real estate transaction that is easily convoluted and confused by pencil-pushing paper-shufflers at banks who seem to change the rules and expectations, offer hollow assurances and show no empathy for anxiety-ridden customers as the process unfolds.

And so this is our cautionary tale for those of you who are thinking of pursuing a short sale. For starters, forget the word “short.” There was nothing short about it.
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Old 01-20-2013, 06:30 PM
 
Location: Henderson
1,077 posts, read 1,391,361 times
Reputation: 702
Quote:
Originally Posted by tbill618 View Post
This story hits home with me, short sales are frustrating. Hopes raised by requests for documents. Failure and refusal to keep buyers informed about the process so that you have no idea when this nightmare will be over. My family arrived in Las Vegas 6 months ago. We have tried to buy several homes. We have a short sale on the burner but it is getting increasingly difficult to wait while I watch home prices go up. The only thing I wonder about when I read that article is if the author ever made it known that he worked at a newspaper. It would be awfully tempting to threaten BOA with exposure for their shoddy practices especially when you get transferred to voicemail when you ask to speak to a supervisor.

Feel free to use this thread to post your short sale horror stories.
Uh, is there something new here?
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Old 01-20-2013, 07:36 PM
 
Location: ( ͡ ͜ʖ ͡) (╯□)╯︵ ┻━┻ ̡
7,112 posts, read 11,263,858 times
Reputation: 3877
I would like to hear more stories from the other side of short sales.(sellers)

We keep hearing about the buyers, but there has to be just about as many sellers as buyers, actually a lot more.

I don't see where the complexity is coming from?? Maybe it has everything to do with the rising market. We short sold our old home with hardly any issues. Home was appraised-buyer made cash offer-bank countered-buyer countered-bank did another appraisal-bank accepted.

Our old home's value has went up over 20k as of since we sold. That's because all of the other homes in the neighborhood are selling for 15-30k more than when we sold.

My guess is that appraisals are not matching the offers. By the time the bank looks at the offer, it's probably below the last appraisal.


Posted from Nokia 8210
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Old 01-20-2013, 07:58 PM
 
Location: Lancaster, CA / Henderson, NV
1,106 posts, read 1,165,360 times
Reputation: 1029
I bought my house as a short sale. The process was smooth as glass. Made our offer on Dec 30, 2011 and got the keys on Feb 2, 12. 34 days start to finish. And yes the selling bank was BoA.
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Old 01-20-2013, 08:15 PM
 
Location: Bangkok, NYC, and LV
2,037 posts, read 2,558,045 times
Reputation: 1128
Public policy makers should consider providing legislative relief for this quagmire.

Kudos to the poster with the expeditious short sale above. You were lucky.
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Old 01-20-2013, 08:54 PM
 
261 posts, read 366,725 times
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Someone on the Las Vegas Sun website had an idea to make the short sale process quicker and fairer for buyers.

Quote:
Lesson: Short-Sale purchase agreements are not to be trusted, while buyers risk losing their escrow deposits (as damages) to sellers if buyers don't adhere to agreement there is nothing which holds sellers/lien holders equally accountable to buyers when contract terms are not adhered to by sellers -- understand those negotiating purchase agreement are the sellers, not lien holders.

It is our contention that lien holders AND sellers should come to agreement upon price/terms PRIOR to being ALLOWED to place any home upon the open market for purchase -- buyers, sellers, realtors, escrow agencies, financial institutions, etc. would all be better off if short-sale pre-approvals were required from the sellers/lien holders before introducing homes to the market place -- much like loan pre-approval requirements for home buyers entering the market place -- allowing the "short" into the sale.
The problem right now is the market is red hot and waiting for a short sale means risking paying a lot more for a house. Las Vegas market has more short sales because of AB 284. With fewer foreclosures that can be negotiated and closed in a short period of time means buyers are panic buying in a self reinforcing system the end which we cannot see.

Quote:
Meanwhile, foreclosures made up just 9.5 percent of all sales in the valley last month, down from more than 50 percent a few years ago. The drop is due largely to Nevada’s “robosigning” law, which took effect in October 2011 and forces banks to provide more paperwork before seizing a house. Violations can lead to criminal or civil penalties.

Bankers want to unclog the massive pipeline of homes awaiting foreclosure and are discussing how to tweak the law in the coming months, when the Nevada Legislature is in session. But until changes are made, banks will continue to pursue short sales instead of foreclosures, real estate agents said.
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Old 01-20-2013, 10:49 PM
 
Location: Orange County
1,666 posts, read 1,872,938 times
Reputation: 1394
There are two types of short sales. Those already approved by the bank and those that are not.
When a short sale has not been approved by the bank then it is meaningless just because the seller has accepted your offer. This is why some of them take so long. When I was looking at houses my agent wisely steered me clear of these.
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Old 01-21-2013, 01:58 AM
 
12,973 posts, read 12,814,981 times
Reputation: 5420
Some of you are not reading the Sun article accurately. The actual problem was not the short sale...but was BofA on the buyers side.

That has become quite common recently. The front end of the banks are friendly and cooperative...the back ends are terrors. Quicken Loans is another. Getting anything through their back end is a wild ride.

Short sales remain the cheapest way to buy. $5 per SF less than foreclosures and 20 less than traditional sales.

It is not at all clear anything happens with AB284. The RE community lacks any agreement on what should happen. The lenders lack the pull to change the law without some help. Something may develop but so far nothing appears certain.

Many short sales are now routine. Particularly BofA.

And foreclosure prices are rising fast...particularly Fannie Mae which appears to be setting price way above appraisal levels. Fannie provides financing and does not need an appraisal at their list.
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Old 01-21-2013, 08:00 AM
 
Location: ( ͡ ͜ʖ ͡) (╯□)╯︵ ┻━┻ ̡
7,112 posts, read 11,263,858 times
Reputation: 3877
Quote:
Originally Posted by lvoc View Post
And foreclosure prices are rising fast...particularly Fannie Mae which appears to be setting price way above appraisal levels. Fannie provides financing and does not need an appraisal at their list.
That almost makes sense. There is a house behind me that is listed well above any other house in the neighborhood. Almost $50k above any appraisal. I have no idea where the bank got that price from. I have been inside of it back when it was unsecured, abandoned and overrun by cats.

The list price for that home does not make any sense. Even bough the bank(Home Path) has fixed up everything nicely, still does not justify the price. If the home sells for that price then I KNOW that we are in trouble.

There is no way an accurate appraisal was used.




Posted from Nokia 8210
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Old 01-21-2013, 08:10 AM
 
Location: Bangkok, NYC, and LV
2,037 posts, read 2,558,045 times
Reputation: 1128
What is likely to occur is that the price accepted at the beginning of the shortsale will not be the price requested by the bank at the end of the shortsale if the process takes more than a few months.
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