It seems like the area I've been looking in (Rocky Point, Miller Place, Sound Beach) has a *lot* of short sales. I reluctantly put a bid on one but I know it can be complicated and I don't feel like I want to sit with it too long but hey maybe my offer will be quickly rejected by the bank!
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I find the whole process bizarre. The owner lists it, but really without the bank knowing, until the owner gets a viable (to him? or listing agent?) offer then submits data including comps and hardship letter to the bank, which then sits on it forever before looking at it, and then accepts, refuses or counteroffers, mostly refuses or counteroffers.
The market is trending down, and so, the banks wait, and they lose $. One new listing, I mentioned to my broker, turns out to be a short sale that was temporarily off while waiting to go to contract, but contract was cancelled by buyer as it took so long. As my broker points out, the bank just lost money. The market was better a few months ago, so, by being (to me) inept and suspicious, the banks are just losing money. OTOH shouldn't there be a better process for owners--so they can't just willy nilly list their homes, without even knowing what the bank would take? And in a moving market (ie changing, falling) its confusing. The whole thing seems strange.
I did some reading last night and it seems like Frannie May is going to try to streamline short sale process to make it easier and less restrictive on requirements, in the next few months. Maybe that'll smooth the way for banks to start treating short sales in a more expedited friendly manner.
In any case, the short sale that has come back on the market--the house sold for 135K in 1999, but is listed at something like 285, my broker says that they must've taken out a second mortgage when the market was at its peak and now are in trouble.
Does anyone have any thoughts on the amount of short sales they're seeing out in Suffolk and where the whole situation is headed?
Thanks.
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Short Sales in Suffolk
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