Short Sale - The buyer (approve, foreclose, bank, contract)

[TimtheGuy]

Originally Posted by wankel7

LOL, nice.

Anyways, its my first house. I am over analyzing everything.

Thanks for the information!

And yeah. I guess I do sound like a sob. We meet the lady that is losing her home. She was really really nice and has taken such great care of the home. She gave us so much information about the home we could have never learned. Every single short sale or foreclosure I have looked at up to this point the scorched earth policy was in effect.

It was sad to actually meet the one losing the home.

Good luck with your purchase! OP came offa bit like it was from the 'entitlement club'.

If you have any specific questions with regard to the process, current rate/fee options, underwriting, appraisal, title....feel free to ask. There are multiple loan officers on these boards willing to answer.

My question-What is the 'scorched earth policy'?

[Debsi]

Originally Posted by TimtheGuy

My question-What is the 'scorched earth policy'?

I'd guess it's the people who feel somehow vindicated by "punishing" the bank via destroying the house, taking the light fixtures and appliances with them, etc.

[TristansMommy]

Originally Posted by Debsi

I'd guess it's the people who feel somehow vindicated by "punishing" the bank via destroying the house, taking the light fixtures and appliances with them, etc.

That "scorched earth"won't happen in a short sale..

I can now understand why that happens.. and here's why.

Right now I currently have my house on the market as a short sale. I know what it was appraised at and the min the bank would take for that house. Well I hace two offers , one $29 and one $28K ABOVE the minimum they would accept and pretty much right at where it was appraised at by the bank.

But. .I have a lien on my house that I can't get removed because a) I dont' have the money at the moment to do it (our savings were depleted trying to save the house and put INTO the house when we bought it w/ downpayment and improvements) and 2) the time it would take to get the lien removd without paying the lien off would not be completed in time to prevent foreclosure.. besides which we would loose these buyers if they had to wait that long (there are 200 other homes tey could buy in my neck of the woods!). BUT.. the lien is FAR LESS than the $28K ABOVE THE MIN they would accept.

I have spent MANY months exhausting myself trying to do the right thing.. First by trying to get a modification to stay at my home at the current principal but keeping the initial interest of 6.95% (which at the time I was trying was well above the best rates offered).. they denied.

NOW.. I've said..okay.. let me get the bank as much as I can (because I get nothing.. AND I don't have to declare the difference they getas income thanks to the law Bush passed earlier this year) to try and make this right and meet my obligation as best I could. I have done just that and have beenVERY proactive in getting everything together for te short sale so that it is timely.. AND NOW THEY ARE TURNING DOWN NOT 1 BUT 2 EXCELLENT OFFERS $28k ABOVE THE MIN THEY WOULD ACCEPT FOR A LIEN THAT NEEDS TO BE PAID THAT IS FAR LESS THAN THAT!

So..if I can't get it through.. I'lljust let the house go to foreclosure. I have my rentla lined up in a new state so the house will be empty before they take possession (and during the winter it will be empty.. not filling up the oil tank before I leave) and I will take some of things out of the house that I could use in my new location (like the batrhoom vanity an some fixtures). Why? well because I am angry (and still paying for some of it on my home depot card) And .. I tried to do everything I can to do theright thing.

Banks are stupid anyway.. they wonder why they are loosing so much money.. becaues foreclosing on my home will end up causing them to loose $50 - 100K more with time, costs and property value decreasing! They are stupid really if they dont take it.. and I can say I did all I could..

I wouldn't destroy .. I would just remove some things.. I wuold turn the main valve off to the house to prevent the pipes to burst.. it would break my heart to destroy all of our hard work.. but iwon't feel guilty about removing some fixtures, appliances I paid for.

[michael krotchie]

Originally Posted by TristansMommy

That "scorched earth"won't happen in a short sale..

I can now understand why that happens.. and here's why.

Right now I currently have my house on the market as a short sale. I know what it was appraised at and the min the bank would take for that house. Well I hace two offers , one $29 and one $28K ABOVE the minimum they would accept and pretty much right at where it was appraised at by the bank.

But. .I have a lien on my house that I can't get removed because a) I dont' have the money at the moment to do it (our savings were depleted trying to save the house and put INTO the house when we bought it w/ downpayment and improvements) and 2) the time it would take to get the lien removd without paying the lien off would not be completed in time to prevent foreclosure.. besides which we would loose these buyers if they had to wait that long (there are 200 other homes tey could buy in my neck of the woods!). BUT.. the lien is FAR LESS than the $28K ABOVE THE MIN they would accept.

I have spent MANY months exhausting myself trying to do the right thing.. First by trying to get a modification to stay at my home at the current principal but keeping the initial interest of 6.95% (which at the time I was trying was well above the best rates offered).. they denied.

NOW.. I've said..okay.. let me get the bank as much as I can (because I get nothing.. AND I don't have to declare the difference they getas income thanks to the law Bush passed earlier this year) to try and make this right and meet my obligation as best I could. I have done just that and have beenVERY proactive in getting everything together for te short sale so that it is timely.. AND NOW THEY ARE TURNING DOWN NOT 1 BUT 2 EXCELLENT OFFERS $28k ABOVE THE MIN THEY WOULD ACCEPT FOR A LIEN THAT NEEDS TO BE PAID THAT IS FAR LESS THAN THAT!

So..if I can't get it through.. I'lljust let the house go to foreclosure. I have my rentla lined up in a new state so the house will be empty before they take possession (and during the winter it will be empty.. not filling up the oil tank before I leave) and I will take some of things out of the house that I could use in my new location (like the batrhoom vanity an some fixtures). Why? well because I am angry (and still paying for some of it on my home depot card) And .. I tried to do everything I can to do theright thing.

Banks are stupid anyway.. they wonder why they are loosing so much money.. becaues foreclosing on my home will end up causing them to loose $50 - 100K more with time, costs and property value decreasing! They are stupid really if they dont take it.. and I can say I did all I could..

I wouldn't destroy .. I would just remove some things.. I wuold turn the main valve off to the house to prevent the pipes to burst.. it would break my heart to destroy all of our hard work.. but iwon't feel guilty about removing some fixtures, appliances I paid for.

I can understand taking things you purchased yourself after getting the home, but taking anything that came with the home I don't agree with (I see a lot of homes where that has happened).

Essentially, anyone who does that is walking away with the possessions of the bank, regardless of how incompetent they were with the offers that came in on the home.

Sometimes I wonder if the banks are so "backlogged" why they don't just hire 10-15 more people to process all the short sales. If they can save $20-$30k a pop vs. letting the home slide into foreclosure, why wouldn't they want to save money? Just don't get it sometimes..

[TristansMommy]

Originally Posted by michael krotchie

I can understand taking things you purchased yourself after getting the home, but taking anything that came with the home I don't agree with (I see a lot of homes where that has happened).

Essentially, anyone who does that is walking away with the possessions of the bank, regardless of how incompetent they were with the offers that came in on the home.

Sometimes I wonder if the banks are so "backlogged" why they don't just hire 10-15 more people to process all the short sales. If they can save $20-$30k a pop vs. letting the home slide into foreclosure, why wouldn't they want to save money? Just don't get it sometimes..

Well. .if I were to take everything I would take ALOT.. LOL..but because of their stupidity and outright inability work logically with me, I really hav eno problem taking things.. so the bathroom will be without a sink... some fixtures might be missing.. whatever I feel I could put in my rental with me will be removed.. I wont' go so far as to destroy the floors etc.. no point in that and it wuold break my heart to do that..

In my case it has nothing to do with them being back logged. They are actually working pretty quickly in responding (once the HUD is submitted they say it takes 5-7 days) the problem is that they will not do my sale with the lien. .even though the lien is FAR LESS than the amount ABOVE THE Minimum they were willing to accept. Just doesn't make much sense when you cruch the numbers why they are being so stubborn. It's pretty clear.. include the lien in th ecosts of closing this out and selling.. or loose the buyer, loose the sale and take the house in foreclosure.

[michael krotchie]

Originally Posted by TristansMommy

Well. .if I were to take everything I would take ALOT.. LOL..but because of their stupidity and outright inability work logically with me, I really hav eno problem taking things.. so the bathroom will be without a sink... some fixtures might be missing.. whatever I feel I could put in my rental with me will be removed.. I wont' go so far as to destroy the floors etc.. no point in that and it wuold break my heart to do that..

In my case it has nothing to do with them being back logged. They are actually working pretty quickly in responding (once the HUD is submitted they say it takes 5-7 days) the problem is that they will not do my sale with the lien. .even though the lien is FAR LESS than the amount ABOVE THE Minimum they were willing to accept. Just doesn't make much sense when you cruch the numbers why they are being so stubborn. It's pretty clear.. include the lien in th ecosts of closing this out and selling.. or loose the buyer, loose the sale and take the house in foreclosure.

You may not have a problem with it but what you're doing is probably considered theft.

Regardless of the bank's incompetence in dealing with your home, you don't have the right to strip what you want and walk away with it.

Now, will the bank actually pursue criminal charges? Probably not. But only because they wouldn't want to spend the additional money pursuing it when they really want to deal with the house itself.

Don't agree with me? Here's an article that got some attention recently for essentially the same thing (albeit to a ridiculous level).

[TristansMommy]

Originally Posted by michael krotchie

You may not have a problem with it but what you're doing is probably considered theft.

Regardless of the bank's incompetence in dealing with your home, you don't have the right to strip what you want and walk away with it.

Now, will the bank actually pursue criminal charges? Probably not. But only because they wouldn't want to spend the additional money pursuing it when they really want to deal with the house itself.

Don't agree with me? Here's an article that got some attention recently for essentially the same thing (albeit to a ridiculous level).

Theft? No. .the house is still in my possession and my personal property.. and will still be when I leave (long before they come and kick me out.. because I have a home I'm renting that I'm moving too). I also am still paying for those items I'm paying for.. they are mine..purchased by me.. not the banks..

I read the article.. they wouldn't bother coming after me for my $200 vanity ..etc. I'm not planning on strippin git to that point.. although out of principal I wuld like to

[okaydorothy]

Well sorry to say, but you dont own the faucets, or the doors, or lights or anything. you have defaulted on the loan.

Maybe you should havent done so much to the house until you had the cash to do so.

d

[michael krotchie]

Well if they are yours then obviously it isn't theft (like I stated in my previous post above).

But anything that came with the house when you bought it should remain. And if things are stripped out with the knowledge that the house will be foreclosed, than yes, that is illegal.

[TristansMommy]

Originally Posted by okaydorothy

Well sorry to say, but you dont own the faucets, or the doors, or lights or anything. you have defaulted on the loan.

Maybe you should havent done so much to the house until you had the cash to do so.

d

Not all I put into it was bought on cards.. so stop with the judgement..

But.. regardless of wether it's legal or not.. I will do it. They are really not going to come after me for my bathroom vanity and a few fixtures.. it would cost them even MORE money, time.. and is juts plain ridiculous to boot

Again.. I couldn't destroy the house.. it would break my heart.. but considering I am bending over backwards for this lender to make the situation as right as possible only to be met with their stupidity.. well I won't feel bad at all.. They can take a long work off a shrot peir as far as I'm concerned..

but lets see.. theymay just see the true logic and accept the offer/short sale..

Otherwise.. I will be convinced they would like the actualyl OWN the home and loose more money.