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We went to see a short sale that was listed at $280,000. It is in a neighborhood that is very nice. It is about 3000 sq ft, on a corner lot of a cul-de-sac, with a barn in back. It is .50 acre with animal rights and the home across the street from it is listed at $375,000 (that house is a 10+ but the price is a bit inflated). We went to view the home and it was okay. The basement would need to be finished, the upstairs needs some cosmetic work, but it could be lived in while that was happening.
There was a note on the door saying that the house is going to auction on Nov. 3. My realtor thought that was odd that it was already slated for auction. If I remember correctly the home has only been listed for 1 1/2 months. I could see my husband loving it there but not so sure of myself, I am a little more cautious. It was one we thought would just go to auction and we would keep looking. Well, the selling agent seems determined to get it sold before auction. He relisted the price at $275,000 and indicated that the price was bank approved.
Today the price is listed at $259,000 but it also says that just because that is the list price it may sell for higher and the buyer needs to close quickly. Is there still any hope for this home if we wanted to take a second look at it?
Once the bank approves a price, but they have no buyer, will they usually take lower or is the agent purely trying to drum up more interest and there is no chance the price will go lower?
We just saw this tonight so we will be talking to our agent tomorrow (I guess it technically is tomorrow) but I wanted some second thoughts on it.
Well it sounds like the $275 was bank approved but they didn't get any offers on the property. I am guessing the listing agent is trying to get any offer to present to the lender for the short sale.
As for only 1 1/2 months on the market...people heading into foreclosure don't always list when they should. Clearly these folks were either trying to work something out to keep the house or were in denial about their situation. They got listed later than they should.
If you like the house make an offer. It doesn't sound like it is an approved short sale so the house may still go to auction.
Yes the listing agent is trying to get it sold before auction because that is the only way they will get paid. Once it goes to auction the listing will go to whatever agent holds those bank contracts.
I think short sales are a waste of time...in my opinion they aren't really for sale since they don't close 95% of the time.
My suggestion is wait until it's foreclosed and then try to buy it (direct from bank) once it's listed on MLS. Or look at other houses if you're not sure on that one.
I think short sales are a waste of time...in my opinion they aren't really for sale since they don't close 95% of the time.
My suggestion is wait until it's foreclosed and then try to buy it (direct from bank) once it's listed on MLS. Or look at other houses if you're not sure on that one.
Where are the stats that say short sales do not close 95% of the time. It is possible taht NOW they are not because perhaps buyers are not qualifying.. Mine closed and pretty smoothly (I was the seller short selling).
With information like you are giving on these boards is hurting people. Basically those short selling are selling it for less than they owe because they can no longer make the mortgage payments.. probably due to an adjustment and in some cases just plain hard luck (loss of job, illness etc.). They are doing something to avoid foreclosure to save whatever credit they have left and to know they got out of a bad situation the best way possible.
Short sales take patience, yes, but in the end it could be well worth it to buy one! As long as the buyer offers market value or within 10% of market value then there will be no haggling really.. the bank either accepts or rejects.. if they accept then you have to go through your hoops to get the mortgage commitment and close.
sometimes people have to go into a short sale because they HAVE to sell their home due to a job relocation ,etc... and the market is "saying" that their home is not worth what they paid for it when purchased.
We are in a situation right now where quite possibly we may have to take less than we paid and just move forward. Our home is in a brand new development that the builder is just quickly trying to build out and to do so, is drastically dropping the prices on their homes. I mean by more than 100K on some models, ours included.
This hurts us drastically as we have only been in our home for a little over a year.
So no, a short sale doesn't always mean that a person can't afford their mortgage.
We are responsible people who are going to soon be paying TWO mortgages and we will not default because it is the "easy" way out these days...
It is people like us that are suffering from all of those "bad" loans that were given to those people who believed the banks when they told them they could afford that $500K house!
You need to look at the date of the blog. That is from back in February and a lot has changed since then. It all depends on the bank,the market area and often times the Realtor® working the deal. Back in Feb in my area, approx 20% of the short sales were actually closing. Now, I would say we're up to just about 50%. That is a huge difference. In the market we are in now it's very important to be going by current information.
We have seen an upswing, again, depending on the bank, in loan modifications which are enabling people to stay in their homes...and some are able to sell the home under the modification allowing them to sell at a 'short sale price' and come away from the table with money.
I think short sales are a waste of time...in my opinion they aren't really for sale since they don't close 95% of the time.
My suggestion is wait until it's foreclosed and then try to buy it (direct from bank) once it's listed on MLS. Or look at other houses if you're not sure on that one.
ditto to that. We have been involved in 4 short sales now and I am tired of the waiting game. No one knows anything. We think we are the highest bidder then we find out we aren't and we start all over again. I see house I want and can't stop thinking about it (emotionally attached) and then we never get it. It's so frustrating. But in the city we are looking in the majority of the homes for sale are short sales.
Short sales take patience, yes, but in the end it could be well worth it to buy one! As long as the buyer offers market value or within 10% of market value then there will be no haggling really.. the bank either accepts or rejects.. if they accept then you have to go through your hoops to get the mortgage commitment and close.
The frustration in short sales is being one of many bidders and never knowing if you are the highest. It's the competition that is tough. Seems there are alot of houses for sale, but then you go to bid on it and there is already 8 to 10 offers.
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