[Coop01]

Originally Posted by 007 license to sell

Even though this article is addressing what is happening with defaulted home owners this is what is happening with distressed properties in and around Vegas except it's even worse..........

Interesting article. I considered a short sale several years ago but after experiencing results similar to those depicted in the WAPO article I decided to was less stressful to just give it up, take the hit and move on.
Although others on this thread said that the market was going to recover and this was a glitch my gut told me this was different .... really different this time. I proved to be right.

In the following years after the bank bailout and changes in FASB accounting rules it appears short sales are not in the banks best interest. Under FASB there is no penalty for holding a non-performing asset. They can value the property based on their own process and therefore the bank can hold it at their book value.

If they accept a short sale and it is less than the current market value they have to report a loss on at least the difference of the mortgage and the sale price. The loss might have an impact on the values of other similar non-performing assets if a forensic auditor looked at the valuing methodology.

Have you had any experience with short sales? I know there are many factors involved but generally how long does the process take from offer to close in LV?

[007 license to sell]

Originally Posted by Coop01

Interesting article. I considered a short sale several years ago but after experiencing results similar to those depicted in the WAPO article I decided to was less stressful to just give it up, take the hit and move on.
Although others on this thread said that the market was going to recover and this was a glitch my gut told me this was different .... really different this time. I proved to be right.

In the following years after the bank bailout and changes in FASB accounting rules it appears short sales are not in the banks best interest. Under FASB there is no penalty for holding a non-performing asset. They can value the property based on their own process and therefore the bank can hold it at their book value.

If they accept a short sale and it is less than the current market value they have to report a loss on at least the difference of the mortgage and the sale price. The loss might have an impact on the values of other similar non-performing assets if a forensic auditor looked at the valuing methodology.

Have you had any experience with short sales? I know there are many factors involved but generally how long does the process take from offer to close in LV?

Oh yes I have had experience with short sales and they are a mess, I have had some go through but not easily, I have more short sales fail than succeed, and you really have to pack your patience.

[007 license to sell]

Here is the latest news on the Vegas housing market reported by our local newspaper. I disagree that the prices will start to go up, if inventory is increasing and demand is going down I don't know how some of these experts can say that. And since we are at over 14% unemployment those move up buyers are stalled along with the 80% of Vegas area home owners upside down won't be able to move up as well.

Home Is Where Heartache Is

Las Vegas housing industry shows few signs of recovery; prices bounce along bottom as unemployment saps rebound.

[skugelstadt]

Originally Posted by 007 license to sell

Oh yes I have had experience with short sales and they are a mess, I have had some go through but not easily, I have more short sales fail than succeed, and you really have to pack your patience.

To what do you attribute the failures? Banks want more
money? Buyers give up due to long wait times?
Sk

[aitchem]

The banks would rather have these properties on their books for an inflated price, rather than sell for a realistic price. If they sold these short sales quickly the bubble reallywould burst

[KiwiKate]

I'm happy to report that after three months of waiting, my offer on a short sale has been accepted by both mortgage holders. We are set to close early next month. I made four offers in five months -- 2 foreclosures and 2 shorts -- and am thrilled with the outcome. It sure take patience though!

[kimba01]

Originally Posted by KiwiKate

I'm happy to report that after three months of waiting, my offer on a short sale has been accepted by both mortgage holders. We are set to close early next month. I made four offers in five months -- 2 foreclosures and 2 shorts -- and am thrilled with the outcome. It sure take patience though!

Congrats!

[Coop01]

Originally Posted by KiwiKate

I'm happy to report that after three months of waiting, my offer on a short sale has been accepted by both mortgage holders. We are set to close early next month. I made four offers in five months -- 2 foreclosures and 2 shorts -- and am thrilled with the outcome. It sure take patience though!

WOW. It does take patience. It would really be helpful if you could post a small diary of your experience. Surprises, roadblocks, Did you have to sprinkle a little cash to the holder of the second note. etc.
Was it an all cash offer did you get a new mortgage with cash to new loan?
Were the other three rejected?

[KiwiKate]

Originally Posted by Coop01

WOW. It does take patience. It would really be helpful if you could post a small diary of your experience. Surprises, roadblocks, Did you have to sprinkle a little cash to the holder of the second note. etc.
Was it an all cash offer did you get a new mortgage with cash to new loan?
Were the other three rejected?

I'm a cash buyer. In three cases, I offered at or just above asking price. The first, the seller accepted and the bank came back $20,000 over asking. I didn't counter. The second, I was beaten out by a higher offer on the same day. In both cases, I heard back pretty quickly. The short sale I hope to close on next month, the negotiator handled communications between the two mortgage holders and I didn't need to sweeten the pot. It also helped that and earlier offer had fallen through and that my broker and the listing agent worked for the same brokerage. However, it did take just under three months to get to this point.

The only one I offered less on had Kitek plumbing that hadn't been fixed --the seller had pocketed the settlement money. I offered $195,000/list price $209,000. Bank would not budge so I moved on.

Hope this is helpful.

[SportyandMisty]

Originally Posted by KiwiKate

I'm happy to report that after three months of waiting, my offer on a short sale has been accepted by both mortgage holders. We are set to close early next month. I made four offers in five months -- 2 foreclosures and 2 shorts -- and am thrilled with the outcome. It sure take patience though!

Congratulations!