U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Foreclosures, Short Sales, and REOs
 [Register]
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)
Reply Start New Thread
 
Old 07-25-2011, 09:26 PM
 
1 posts, read 3,563 times
Reputation: 10

Advertisements

Hello all, brand new to the board here. We recently put an offer in on a short sale in our neighborhood. I will give the specifics and I was just wondering if you all think our offer is in line. House originally listed for 152,000 price reduced to 142,777 three months ago. Home has been on market since february. Backyard has not been cared for in 6 months, numerous downed trees, stumps, weeds etc. Lady who owned it was a smoker so that means new paint, carpet, ducts cleaned etc. We offered 127,000 and realtor said we should be in the ballpark. Seller accepted offer yesterday now just waiting for bank. Can anyone give insight on their feeling on the offer and give insight on the roller coaster ride we are in for?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 07-25-2011, 09:37 PM
 
28,461 posts, read 80,074,907 times
Reputation: 18643
Lenders generally will OK shortsales if the "top line" number is well supported by comps -- they do not like discounting for ANY condition issues and only rarely will discount for even serious issues like run away mold / rotting structure...

If there are comps that make $127k seem fair you might get a good deal. If the comps are all 10% or more higher they will probably balk...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-26-2011, 09:05 AM
 
9,733 posts, read 9,133,872 times
Reputation: 6387
It is not up to the seller in a short sale situation. It is 100% the banks decision of what they are willing to write off to release the title.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-26-2011, 08:43 PM
 
Location: Snellville, GA
468 posts, read 1,313,300 times
Reputation: 163
Well, first of all, be prepared to possibly bide a bit of time! Each situation is different - some can be completed in a couple of weeks, some a couple of months.

Here again, since each situation is different, it's hard to say what the bank will do - you won't find that part out until towards the end of the process - they've got LOTS of papers to shuffle before that part!

Get your agent to pull the current comps, just in case.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-27-2011, 08:01 PM
 
Location: The Milky Way Galaxy
2,256 posts, read 6,611,192 times
Reputation: 1517
Just to give you some insight...I signed a contract for a short sale back at the end of November last year. We're close to the finish line right now to getting that approval it seems. But yeah 8 months later and we're still waiting....the sellers bank is with Bank of America and the mortgage was likely sold off to another bank for holding. It took 4 months just to get BOA to acknowledge they got the sellers short sale package which was submitted to the bank in December. We just signed a contract addendum back a few weeks ago saying we'll close by July 31st pending short sale approval which they said would come a day or two after they received the sign contract addendum. Well here I am 10 business days past that and nothing. Its just a sign of how slow things have been throughout this whole process. Come Aug. 2nd our mortgage loan expires and we have to resubmit some papers again and pay more money to lock the rate and for them to do yet another credit authorization on us. We were prepared to wait about 6 months from when we signed the contract but now we're on 7 months and still at the mercy of the sellers bank BOA.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-27-2011, 11:12 PM
 
Location: Midwest transplant
2,050 posts, read 5,586,156 times
Reputation: 1619
I would think that you would have the grounds to back out of the contract since the dates have expired, and no longer effective. We just put a bid on a house (also a short sale) but we are actually in no hurry to close, and if the bank doesn't approve our offer, we're okay with walking away. We were warned that it could take 6 weeks to 6 months to even get a response from the bank.

Our realtor told us right away that we are under no obligation to continue with the contract if the bank doesn't respond within the written time line. Sure, we'd lose on a great deal~but as a buyer I'm standing on the ground that it's my market.

We've got the comps, I've also taken pictures of the outside of the house. It was advertised by the bank as needing TLC but it's been empty for 1 1/2 years. Well, at this point it needs MAJOR TLC and a mini dumpster because of the condition of the outside. Two trees are dead, the shrubs and weeds are battling each other for garden space, and the yard is an eyesore. I can't believe that the bank isn't being fined by the municipality, the utilities and the HOA for the condition of the exterior.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-28-2011, 03:51 AM
 
16,433 posts, read 21,061,230 times
Reputation: 9598
I have had nothing but disappointment with bidding on short sales. Now I will wait until foreclose is completed and then deal with the mortgage holder.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-30-2011, 07:08 PM
 
1,472 posts, read 2,495,299 times
Reputation: 562
Quote:
Originally Posted by mgt04 View Post
Just to give you some insight...I signed a contract for a short sale back at the end of November last year. We're close to the finish line right now to getting that approval it seems. But yeah 8 months later and we're still waiting....the sellers bank is with Bank of America and the mortgage was likely sold off to another bank for holding. It took 4 months just to get BOA to acknowledge they got the sellers short sale package which was submitted to the bank in December. We just signed a contract addendum back a few weeks ago saying we'll close by July 31st pending short sale approval which they said would come a day or two after they received the sign contract addendum. Well here I am 10 business days past that and nothing. Its just a sign of how slow things have been throughout this whole process. Come Aug. 2nd our mortgage loan expires and we have to resubmit some papers again and pay more money to lock the rate and for them to do yet another credit authorization on us. We were prepared to wait about 6 months from when we signed the contract but now we're on 7 months and still at the mercy of the sellers bank BOA.
Wow so BOA hasn't even approved your original offer yet? So, no appraisal has been done by your lender or what about inspection? You usually don't do those things until/if the lender accepts your offer. So, unless I am confused, you haven't done the appraisal (by YOUR lender) or inspection?

How would you have time to do those things if the closing WAS scheduled to be done by July 31???
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-31-2011, 04:07 AM
 
Location: The Milky Way Galaxy
2,256 posts, read 6,611,192 times
Reputation: 1517
Quote:
Originally Posted by twowolves View Post
Wow so BOA hasn't even approved your original offer yet? So, no appraisal has been done by your lender or what about inspection? You usually don't do those things until/if the lender accepts your offer. So, unless I am confused, you haven't done the appraisal (by YOUR lender) or inspection?

How would you have time to do those things if the closing WAS scheduled to be done by July 31???
No we don't have an approval with the original offer. The appraisal is done beforehand because its needed for the mortgage approval and the sellers bank needs to see that the Buyer (us) is approved.

When you do an inspection with a short sale is up to you. We did ours way back after signing the contract in November because why wait so long on a property that could have a potential problem. A clause in our contract protects us if something major happens between the inspection and when we actually close on the place.

The contract addendum with the sellers bank saying we should close on or before the 31st (lol today) is contingent on the bank approving. Otherwise we continue waiting really.....in the end, all parties involved are at the mercy of the seller's bank (and/or whoever owns the defaulted mortgage) I hope to have a good ending to this story in August before I get married at the end of the month lol
Rate this post positively Reply With Quote Quick reply to this message
 
Old 07-31-2011, 09:43 AM
 
Location: Tempe, Arizona
4,511 posts, read 12,963,418 times
Reputation: 2200
Quote:
Originally Posted by mgt04 View Post
No we don't have an approval with the original offer. The appraisal is done beforehand because its needed for the mortgage approval and the sellers bank needs to see that the Buyer (us) is approved.
...
I agree, it's very unusual to have an appraisal and lock in a loan before you have short sale approval from the seller's bank. It's not required by the seller's bank, all they need to see is that you were pre-qualified for a loan. We have a short sale addendum that says loan processing and inspections don't start until written approval is received. Then you typically have about 30 days to get it done.
Rate this post positively 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
>
Powered by Foreclosure.com
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:

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 > General Forums > Real Estate > Foreclosures, Short Sales, and REOs
Similar Threads

All times are GMT -6. The time now is 11:17 PM.

© 2005-2022, 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