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I know they notoriously have a reputation for taking a long time, but my agent keeps saying he thinks this one will go very quickly.
On the offer sheet we have the dates listed, and he thinks closing will occur in mid-May. Is he being overly opptimistic or is this a possible timeline?
It depends on the listing agent and how much preliminary stuff he/she did prior to turning in a contract. If the bank is prepared, it could go quickly. If the bank isn't...
Thanks..He seems to think it will, so maybe he's right. I put in an offer about 6% below list, is it possible that it will be accepted?
And I want to include closing costs, but my agent told me I need to contact a lawyer and have him add that into the contract. Isn't that something that should have been included on my offer, so they know?
For many short sales, list price is not a good indicator of value. Hopefully your agent reviewed recent comps with you, and you based your offer on that information. That's what the bank will do too when considering your offer.
The answer to your closing cost question may depend on where you are located, and if lawyers are involved in writing the final contract such as in some eastern states. Where I am, the agent would include closing costs in the original offer and lawyers are not involved.
....my agent keeps saying he thinks this one will go very quickly.
DON't trust what agents say (I know I may offend some agents who post here regularly.... not my intention). He has NO CONTROL over how quickly or not it'll close. In fact, read my post about my SS - After I submitted my offer and there were a lot of emails flying back and forth to get me to raise my $, the listing agent ends every email with "Do X and it'll close quick". He must have written that close to 8 times..... I never trusted a word, and didn't bulge. Why am I not surprised now that it has been 3 months and I'm still waiting.
For many short sales, list price is not a good indicator of value. Hopefully your agent reviewed recent comps with you, and you based your offer on that information. That's what the bank will do too when considering your offer.
The answer to your closing cost question may depend on where you are located, and if lawyers are involved in writing the final contract such as in some eastern states. Where I am, the agent would include closing costs in the original offer and lawyers are not involved.
I am in the north east, so I guess the lawyers are in charge of that
I know they notoriously have a reputation for taking a long time, but my agent keeps saying he thinks this one will go very quickly.
On the offer sheet we have the dates listed, and he thinks closing will occur in mid-May. Is he being overly opptimistic or is this a possible timeline?
Thanks
There is no rhyme or reason when it comes to short sales. He's just being optimistic.
If you have any timeline you need to be in a place forget abou tthe short sales. If your the type of person who falls in love with a place forget about short sales.
So many people now are not even serious about doing a short sale they just wanna buy a few more months of free rent.
Why get more people involved not just a bank but also the homeowner sometimes multiple banks.
There are more than enough foreclosures out there which go much smoother, why not buy one of those? I heard back within 4 hours that my offer was accepted, short sale my realtor was really optimistic too. After 6 months of hearing nothing I'd heard enough
I hear mostly frustration from people trying to close on short sales.
The banks will move depending on their current inventory, how many they have in the till and what has been replenshed to them by the govt. thats just my opinion. They have a lot of inventory and if they write it all off at the same time, they get closed down for insolvency. So they take their time.
I also agree with the other poster about list price. Those can be total b.s. definetly do your own independent checking and low ball the price.
Ive tried checking into shortsales and foreclosures in my area, but they are not going for any cheaper than market price,
so I have stopped bothering...most have had general poor design/poor layout or other issues that make them unattractive in the first place.
The number of banks that held any significant number of single family residential mortgages is vanishingly small. Most such lenders were wiped out years ago. The decisions about short sales are not truly being made by individual bankers but at the interface between the servicers and GSEs.
The simple reason why lenders CANNOT be "closed down for insolvency" is becuase the vast majority of loans are NOT assets on their balance sheets. The lenders long ago sold these loans in the secondary market. Any impact to the strength of the lenders happened in their holding of MBS not actual loans. Big difference.
When it comes to pricing I do agree that shortsales and even foreclosures are mostly going for amounts very close to the market price of non- distressed housing. On the one hand this is not very surprising, as sellers should not care about who owns a house when they make an offer, but it also shows that lenders / asset managers are not as uniformly stupid as they sometimes seem. By either deliberate action, or simple slowness due to huge backlogs they have largely managed to throttle supply and effectively increase demand. Time on market is declining, and the remainder of inventory often is the kind of stock that ALWAYS sits for a buyer willing to do major repairs, or to have a powder room that used to be coat closet (with all the charm of the single light bulb and the coat hooks still over the too small toilet) or a master bedroom that still has the built-in buffet of it's former life as a dining room...
A strategy of low balling may be appropriate for homes that have significant flaws in their layout or glaring signs that maintenance has been deferred to the point where major expenditures will now be required, but anyone who as a matter of course attempts to make unrealistically low offers on properties with no major shortcomings just because they are foreclosures or shortsales is unlikely to be successful in the current market.
Quote:
Originally Posted by greggd1
I hear mostly frustration from people trying to close on short sales.
The banks will move depending on their current inventory, how many they have in the till and what has been replenshed to them by the govt. thats just my opinion. They have a lot of inventory and if they write it all off at the same time, they get closed down for insolvency. So they take their time.
I also agree with the other poster about list price. Those can be total b.s. definetly do your own independent checking and low ball the price.
Ive tried checking into shortsales and foreclosures in my area, but they are not going for any cheaper than market price,
so I have stopped bothering...most have had general poor design/poor layout or other issues that make them unattractive in the first place.
I know they notoriously have a reputation for taking a long time, but my agent keeps saying he thinks this one will go very quickly.
On the offer sheet we have the dates listed, and he thinks closing will occur in mid-May. Is he being overly opptimistic or is this a possible timeline?
Thanks
Welcome to "about as close to being pregnant as possible!" This is where you will receive advice at a rapid pace, solicited or not. Also, everyone that ever had a horror story will be compelled to share their experience. Just as when it comes to childbirth.....depend upon the professionals you engage, ask questions when you don't understand, and no two experiences are alike. Your irratic behavior will be forgiven when it's explained in a whisper, "short sale contract." Time off from work is granted as needed, after all, everyone understands. Expect presents around the the big event and you'll have the, "OMG, I'm going to be responsible for something" aha moment. It's all normal, even down to everyone forgetting all about it the day after closing.
Enjoy!
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Fundamentally incorrect.
