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Old 11-13-2009, 09:31 PM
 
Location: Peoria, AZ
1,064 posts, read 1,547,748 times
Reputation: 415

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Quote:
Originally Posted by leavingGA View Post
I'm not sure how that describes a short sale at all. Short sales are properties facing foreclosure that need approvals from the original mortgage company lets the prior owner off the hook even is they don't bring cash to the table. Meaning their property's selling price is less than their mortgage. Yes, there are bidding wars for the best properties. That is some of the best bargain hunting there is. I am learning to negotiate these deals right now elsewhere because it can help sellers out in a pinch. It also still helps buyers get a cheap house too. If they didn't take the house of the market, it was because of earnest money or mortgage issue only. Real estate agents want closed deals(and quickly) or they don't get paid. If you were dealing with an investor, entirely different situation.
This is definitely not accurate! Banks leave the properties on the market until an offer is ACCEPTED. Good realtors would educate their buyers about how long it could take to hear an answer, and worse yet all their waiting could be unfruitful as anyone could come in and bump them out during this lengthy waiting period.

If you are entering into a short sale with any expectation that its going to be quick and easy, then you are going to be gravely disappointed. The only exception may be an "approved" short sale, but there are many banks who have a policy that they dont "preapprove" short sales.

They tell the homeowners to come talk to them if they get an offer in their hand. So in many cases the process cant even begin until the home seller gets an offer in their hand. They offer little clues as to how much they will accept below the loan amount... Its up to the realtor and homeowner to just stick it on the market and see how much they can get. Once the offer comes in, how long they take to review said offer, or if it will be approved it all is always up in the air.

Banks are up to the same antics that got PHX in this mess in the first place, and I feel sorry for anyone who lives in Phx and believes we are on the verge of some recovery. For more on that perspective, read the post I wrote above.

This is one of my favorite topics as I dont think I have more contempt for any other sector than the sloppy banking system.
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Old 11-13-2009, 09:44 PM
 
Location: Maple Lake, MN
8,673 posts, read 9,893,264 times
Reputation: 10154
Or you can put in an offer on a short sale, and while biding your time for the bank and seller to come to an agreement (if they do), then the house goes into foreclosure... I would say unless you have money to burn or time to lose, this is not a buyer-friendly situation. Has anyone here bought a short sale recently?
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Old 11-13-2009, 09:46 PM
 
Location: Peoria, AZ
1,064 posts, read 1,547,748 times
Reputation: 415
Quote:
Originally Posted by Grannysroost View Post
Or you can put in an offer on a short sale, and while biding your time for the bank and seller to come to an agreement (if they do), then the house goes into foreclosure... I would say unless you have money to burn or time to lose, this is not a buyer-friendly situation. Has anyone here bought a short sale recently?
good point, I have seen that too.
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Old 11-14-2009, 02:17 AM
 
Location: North Phoenix/Moon Valley
807 posts, read 1,579,880 times
Reputation: 844
Quote:
Originally Posted by Grannysroost View Post
Or you can put in an offer on a short sale, and while biding your time for the bank and seller to come to an agreement (if they do), then the house goes into foreclosure... I would say unless you have money to burn or time to lose, this is not a buyer-friendly situation. Has anyone here bought a short sale recently?
The truth of the matter is if you put in an offer on a short sale and it is lower than the current asking price the bank will always counter to the asking price. If the listing on the MLS says the price is preapproved then that means the bank has accepted that price as a starting point. If the buyer wants concessions like money for closing costs or other things paid for on the buyer's behalf then the bank will take some time to consider the offer and what the bottom line to them will be. The bank is continuously looking for the "highest and best offer" so even if you offer the asking price or above the bank will still be looking for other offers if they "net" out better than your offer. If the bank has an offer(s) presented to them it is very unusual that the house will go into foreclosure before the bank processes any current offers. Usually they put off the foreclosure date for a month or two so they can process the offer(s). BTW the "highest and best offer is not always the cash offer from an investor. And a side note to you Grannyroost, I have assisted buyers in a couple of short sales and have sold a couple as well. Each case has been totally different from each other. The offer as well as the bank involved have been as different as night and day.
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Old 11-14-2009, 02:25 AM
 
Location: Maple Lake, MN
8,673 posts, read 9,893,264 times
Reputation: 10154
Quote:
Originally Posted by crystalys View Post
The truth of the matter is if you put in an offer on a short sale and it is lower than the current asking price the bank will always counter to the asking price. If the listing on the MLS says the price is preapproved then that means the bank has accepted that price as a starting point. If the buyer wants concessions like money for closing costs or other things paid for on the buyer's behalf then the bank will take some time to consider the offer and what the bottom line to them will be. The bank is continuously looking for the "highest and best offer" so even if you offer the asking price or above the bank will still be looking for other offers if they "net" out better than your offer. If the bank has an offer(s) presented to them it is very unusual that the house will go into foreclosure before the bank processes any current offers. Usually they put off the foreclosure date for a month or two so they can process the offer(s). BTW the "highest and best offer is not always the cash offer from an investor. And a side note to you Grannyroost, I have assisted buyers in a couple of short sales and have sold a couple as well. Each case has been totally different from each other. The offer as well as the bank involved have been as different as night and day.
Those hard sales are better odds than what I have seen in other information. Things may have changed in the past few months, but I don't recall seeing many listing with a preapproved price, though maybe that is new? At the time we were looking, we need a fast closing and our realtor said to bypass short-sales or we will be disappointed. I would hope that would be a positive change in this market for both the buyer and the seller.

Thank you for the information, I would think a few people would appreciate this, especially the 'preapproved' price aspect
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Old 11-14-2009, 09:17 AM
 
Location: Queen Creek, AZ
10 posts, read 11,071 times
Reputation: 21
This is an awesome post. Lots of great information and perspectives.

Discovery, I will email you with the sites for information on that loan. I am new to this site and not sure what sites I can post. I tried posting some websites for some adult active communities in another post and they got removed. I really like this site and don't want to get banned.

I think short sales are for someone who is patient and has the time. Also communication is key, daily phone calls to the lender can move things a long. If your the seller make sure you really research your realtor and that they are going to make those daily calls or at least every other day. Call your lender and make sure that your realtor is making those calls. You will have to give the lender a letter of authorization to allow the realtor to do this. If you are buying a short sale try to get the seller to allow your realtor to have a letter of authorization to also talk to the lender. Unfortunately there are some lazy realtors and some agents trying to do real estate part time and in this market you have to be a full time agent who is willing to put a lot of time into it. Short sales are a gamble but can really pay off for a buyer and it is better then going to foreclosure for the seller. I read that more then 50% of sellers never contact anyone when they are going into foreclosure and just let their home go. Sellers need to find out their rights, don't let the bank win. I know of some great sites that help sellers, not sure what I can post. Sorry a little long winded this morning, I will end here so this doesn't turn into a book
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Old 11-14-2009, 11:14 AM
 
454 posts, read 597,246 times
Reputation: 296
I will end here so this doesn't turn into a book



heehe i like the way you ended your massage
I think you right about patience is a big key that has to go along with short sale process. Buying bank owned homes today so brutal as you have to bid over the asking in great amount in order to get the house. What end up is banks gradually jacking up prices for the last few months. While everyone are concentrating in bank owned properties i think the smart way to go is buying short sale . Offer a fews and wait it out, and again "patience" is a keyword.

Thank you for the info and i definitely will look into it.
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Old 11-14-2009, 02:53 PM
 
109 posts, read 218,854 times
Reputation: 69
Thanks crystalys and tarra, I was just unclear of exactly whether the poster making disparaging comment was BUYING a home or needing to SELL via short sale. The comment just didn't sound right but it is very easy to get frustrated as a home buyer.

Short sales are not a scam but can help both buyers and sellers. That was all I wanted to say. Short sales have more to do with the mortgage company than the sellers (or agents) desire.

Yup, it does take patience to buy when prices are low. Too bad all the vacant homes can't get "matched" with all the people with income just to retain property values and keep them up. Neighborhoods need people and not empty houses.

Good luck to everyone in your home buying (or selling) adventures.

Last edited by leavingGA; 11-14-2009 at 03:03 PM..
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Old 11-14-2009, 04:42 PM
 
Location: Anchored in Phoenix
1,757 posts, read 2,345,120 times
Reputation: 1279
I like the lofts in downtown Phoenix, in Tempe, and at the Optima Biltmore. I hate yardwork and I would rather spend my time doing other things than being a slave to the yard. However if I had a house with a yard, I would get a xeriscape landscape. For a house, I like Ahwatukee, west of 42nd street and north of Chandler Blvd. I also like Scottsdale north of Indian Bend and near the greenbelt.

I'm still debating on where I will buy a place. I'm also interested in the central coast parts of California in San Luis Obispo and Monterey, since I grew up in Central California. The prices there are way beyond my budget, but I don't want to committ to Arizona just yet.
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