Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Florida > Sarasota - Bradenton - Venice area
 [Register]
Sarasota - Bradenton - Venice area Manatee and Sarasota Counties
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 08-17-2013, 12:10 PM
 
Location: Sarasota/ Bradenton - University Pkwy area
4,619 posts, read 7,541,245 times
Reputation: 6036

Advertisements

Short sales, as most of you know, are not for the faint of heart. Because they require the seller's line holders (ie bank or banks holding the mortgage or mortgages) to approve the sale before it can go through, short sales are more difficult to get closed.

Now the banks have added a new level of frustration for buyers. Auctions.

Some lenders (or their servicing agents) are now requiring, when a short sale contract is submitted for consideration/approval, that the homeowner list the property with an online auction company while the contract is in their system for review (which can take 2 months or more).

If, during that time period, the online auction company receives a bid greater than the contract purchase price, the lender will deny the short sale contract and require the homeowner to sell the property to the highest auction bidder.

The lenders are making the online auction a requirement before they will consider the short sale contract that was submitted.


As a buyer, if you are considering making an offer on a short sale, you now have a new question to add to your list of questions for the listing agent: Will this property be subject to an online auction if you accept my offer?
Reply With Quote Quick reply to this message

 
Old 08-17-2013, 01:25 PM
 
Location: Lakewood Ranch, FL
5,662 posts, read 10,745,652 times
Reputation: 6950
I saw the same newsletter from Berlin Patten that, I assume, you saw. I don't understand how this is not tortious interference and I am surprised that they didn't address this. Sure, the lender/investor can refuse to deal with the short sale if there's no capitulation but then they risk the property going to foreclosure and, presumably, they don't want that to happen or they'd go ahead and do it. This ticks me off and I hope "the market" tells these guys to go pound sand.
Reply With Quote Quick reply to this message
 
Old 08-17-2013, 03:02 PM
 
16,376 posts, read 22,490,585 times
Reputation: 14398
How does an online auction work, from a buyer's standpoint? What web sites have local homes that are being auctioned? Are there start/end dates for the auctions?
Reply With Quote Quick reply to this message
 
Old 08-17-2013, 03:34 PM
 
2,076 posts, read 3,106,394 times
Reputation: 1021
Quote:
Originally Posted by sware2cod View Post
How does an online auction work, from a buyer's standpoint? What web sites have local homes that are being auctioned? Are there start/end dates for the auctions?
Google homepath. It is the fannie mae foresclosure site and it has online auctions now. I would expect there are others.
Reply With Quote Quick reply to this message
 
Old 08-17-2013, 08:03 PM
 
37,315 posts, read 59,878,910 times
Reputation: 25341
don't you think this is another way for some "kickback" money to come into play for banks and others with foreclosed property?
By forcing the property that HAS a contract into a site to angle for a higher price it looks like the bank/listing agency AND the auction site stand to make more if there is another offer...
and you know the auction site is probably gaining a minimal amount of money to list the properties if there isn't a sale...
Reply With Quote Quick reply to this message
 
Old 08-18-2013, 11:41 AM
 
Location: Sarasota/ Bradenton - University Pkwy area
4,619 posts, read 7,541,245 times
Reputation: 6036
It wasn't just the Berlin Patten newsletter, this came up recently with a buyer attempting to purchase a home that had Nationstar as the lien holder. Nationstar required the home to be placed on www.Auction.com as a requirement for them to look at the short sale contract.

I have also heard from another agent recently that Bank of America pulled something similar on their client.

Another auction website that these banks use is www.hubzu.com for the person that was asking about sites.

Now that the real estate market has flipped from a buyers market to a sellers market (in many area, including SW Florida), the banks are taking every advantage they can to squeeze out additional profits.
Reply With Quote Quick reply to this message
 
Old 08-18-2013, 12:56 PM
 
Location: Lakewood Ranch, FL
5,662 posts, read 10,745,652 times
Reputation: 6950
I think they are interfering with a contract and, I hope, sooner or later they will get sued by someone for it.
Reply With Quote Quick reply to this message
 
Old 08-18-2013, 07:05 PM
 
Location: Sarasota FL
6,864 posts, read 12,080,222 times
Reputation: 6744
There are people that would buy a HOUSE, through an auction website, sight unseen? Do they think it's like bidding for a $47 item on a site like Ebay? Can a buyer use paypal? Does the auction website tell prospective buyers about the next door neighbor with 3 cars on concrete blocks on the front yard? Or how about the 4 24/7 barking yard dogs behind the house? 'Boss!! I was up until 4 AM thinking about a new gimmick where we can fleece a purchaser of a short sale'.
Reply With Quote Quick reply to this message
 
Old 08-18-2013, 09:13 PM
 
2,076 posts, read 3,106,394 times
Reputation: 1021
Quote:
Originally Posted by d4g4m View Post
There are people that would buy a HOUSE, through an auction website, sight unseen? Do they think it's like bidding for a $47 item on a site like Ebay? Can a buyer use paypal? Does the auction website tell prospective buyers about the next door neighbor with 3 cars on concrete blocks on the front yard? Or how about the 4 24/7 barking yard dogs behind the house? 'Boss!! I was up until 4 AM thinking about a new gimmick where we can fleece a purchaser of a short sale'.
After watching the HGTV show "flip or flop" I now know that people do buy houses site unseen if the price is right.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Florida > Sarasota - Bradenton - Venice area
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top