Help! House Buying & Short Sale ????

[azjack]

"They would get nothing from the foreclosure sale because their lien would be wiped out. However, I believe (don't know for sure) that they are able to get some money from the government to cover part of their loss."

I am not sure about anyone else, but I get a little bit of a kick out of a second-position lender being essentially powerless to do anything to recover a dime. I wonder how often these second position, zero equity lien holders put the kibosh on a potential sale just for the heck of it (or are "overwhelmed," incompetent, etc.) I doubt many of the second position lenders are dumb enough to initiate actual foreclosure on an underwater house, but who knows.

[twiggy]

I agree, a new realtor is in order. I would call "crystalis" maybe or the captain. lol I've seen a lot of people put in higher bids behind two or three people. It's a long shot, but if you love the house then your realtor can hold on to it. Maybe they just want to get you on something else because they need the $. It's a hard biz, some have morals, some don't just like anything. I could be wrong though, I am not an agent. Just a thought.

[twiggy]

Originally Posted by Captain Bill

The MLS Rules have changed. The current rule states that when the "seller" (not the bank) accepts the offer (and seller acceptance is the first step before sending the contract to the bank) the mls listing is to be shown as AWC-1 The selection in the set up is AWC-Seller Written Instructions.

In the case of a short sale, the bank is going to work on that one contract until they exept or decline it. Any other offers coming in are held by the agent as back-up offers. If the first offer is refused by the bank, or falls through, then the "seller" will sign one of the back up offers and the agent will send this one to the loss mitigator.

In the case where the house has "mortgage insurance" (pmi), the bank can end up with more money by letting a house go to foreclosure, so they really don't care. That's most likely why so many houses that go to the court house steps have the amount of the mortgage as the minimum bid, so no one will buy it. They end up as REO's and sold. Then the bank recovers some of their loss through the mortgage insurance.

However, they usually will extend the trustee sale date if they are actively negotiating an offer with a buyer.

There are many homes in Gilbert meeting and exceeding your criteria. Same with Chandler although many of them may be older.

In Gilbert, you can go to a different high school than the local one. I don't know the details.

Today, one can expect that while the size, location and other criteria are available, there will be other criteria that may not meet one's expectation; such as house layout, carpet condition/color, paint condition/color, pool condition, no upgrades, etc.

So the choices are a little more narrow than the number of houses would suggest. Therefore, it takes some looking to find the hidden gem, and in many cases it takes getting there quickly and being prepared to compete for the cream of the crop.

On the other hand, if one is willing to do some work like replace carpets, paint, and other minor type repairs that are found in most bank owned homes, then there are bargains out there that can provide some sweat equity.

Once a house goes to trustee sale, you may not have another chance. It could be sold at the auction. If it doesn't sell at the auction, then it can take up to 8 weeks to come on the market as an REO. If it had multiple offers before, then you can expect multiple offers again if the bank prices it right. You would have the opportunity to compete.

If the house is a bargain, then the listing agent probably has a friend who is an investor who will know about the listing before it hits the market, and that offer will be the first to be submitted. The investor will most likely be paying cash and the banks prefer cash over mortgages. They especially are not fond of FHA loans today because so many of them fall through due to rule changes made daily.

This listing #4112501 just fell through and was put back on the market. When it first went on the market it had multiple offers and the bank accepted an FHA offer. They had a slightly lower conventional loan offer, but the AM chose the higher FHA. Now it's back on the market. It's a great home, and will sell fast again. Unfortunately, the bank may have to lower the price to compensate for the time loss. They'll probably be more careful in their offer selection this time.

Good point, no need to be in the actual school district, you can apply for another, I've done this and it's gone pretty smooth. Not a lot of people out here.