Property listed as a short sale on the market for 500+ days. HOW is this possible? (Cape Coral: foreclosed, mortgage)

[Big House]

Originally Posted by Cobalt502

Quite honestly Hik I think I have had all I can take of the insanity?

I have never in my life witnessed such obstinance by one person...seriously!

In many ways he is correct, but they have coined a phrase. Ignorance is bliss. And, in this case it is abundant, so everything is great for him. Not so those he deals with.

[equalrightsforeveryone]

Ah yes personal attacks always the last resort of the inept.

[Big House]

Originally Posted by equalrightsforeveryone

Ah yes personal attacks always the last resort of the inept.

Cheers! I'll toast to that!

[hiknapster]

Originally Posted by equalrightsforeveryone

Just remember that no one looks out for your interest if you don't do it yourself.

So what happened on your last purchase? Clearly you didn't know or understand the local code or you wouldn't have bought. You blamed that on your agent. I guess you didn't do your due diligence regarding your cargo trailer. Are you now taking responsibility for your error or are you still personally attacking the local politicians, plastering their names all over Facebook with pictures of communist leaders?

Excuse me if I take my advice from someone more professional and on the beam.

[CTC]

Originally Posted by equalrightsforeveryone

I agree but if you don't want the hassle stay away from the short sale.
Biggest problem I have is, that your money is tied up in the deal, while often time you find better properties.

My motto is that I will give my money to the first person that accepts my deal.
And when I buy I make offers on more then one home after all the sellers can get multiple offers and make multiple offers and who ever agrees to my terms first get the money, the other offers I cancel.

I just made an offer on a short sale. I was told not to put any money down until the bank approved the price. I don't have any money tied up. But the property has been taken off the market. This says to me that the bank is not trying to get multiple offers as to raise the price-the property is actually being listed for slightly above the 2010 appraised value. Still worth it to us because of the nice pool and very good setting.

We found a property we really liked, and which was well taken care of unlike many foreclosures I looked at.

Like my agent said, all short sales are different, but she has had good luck getting them through. I think it is important to find a patient agent who has experience with short sales. One agent told me point blank that he won't deal with short sales, so I found another agent. Just as it might take months to get the property, it will take months for the agent to get their money.

The owners in our situation are motivated because their court date is in July-and they have been working with their bank for a while on this (first attempt on their side fell through after the buyer backed out).

Will know in a couple of months I reckon. We are in no hurry, but are feeling optimistic.

[equalrightsforeveryone]

Originally Posted by CTC

I just made an offer on a short sale. I was told not to put any money down until the bank approved the price. I don't have any money tied up. But the property has been taken off the market. This says to me that the bank is not trying to get multiple offers as to raise the price-the property is actually being listed for slightly above the 2010 appraised value. Still worth it to us because of the nice pool and very good setting.

We found a property we really liked, and which was well taken care of unlike many foreclosures I looked at.

Like my agent said, all short sales are different, but she has had good luck getting them through. I think it is important to find a patient agent who has experience with short sales. One agent told me point blank that he won't deal with short sales, so I found another agent. Just as it might take months to get the property, it will take months for the agent to get their money.

The owners in our situation are motivated because their court date is in July-and they have been working with their bank for a while on this (first attempt on their side fell through after the buyer backed out).

Will know in a couple of months I reckon. We are in no hurry, but are feeling optimistic.

What your post makes absolutely no sense at all.
If you intend to honor the offer then your money is tied up.

[Halifax2011]

Originally Posted by equalrightsforeveryone

What your post makes absolutely no sense at all.
If you intend to honor the offer then your money is tied up.

The buyer's money isn't tied up until after the bank accepts the offer.

At that point, it's basically a done deal (unless the buyer backs out because of an inspection or something similar) ... and assuming that the buyer actually wants to buy the property, this is a good thing.

Meanwhile, up until the point that the bank accepts the offer, the buyer is free to shop around for other properties, knowing that they have no money tied up in the short sale and that they can effectively cancel the offer should they find another property.

[equalrightsforeveryone]

Originally Posted by Halifax2011

The buyer's money isn't tied up until after the bank accepts the offer.

At that point, it's basically a done deal (unless the buyer backs out because of an inspection or something similar) ... and assuming that the buyer actually wants to buy the property, this is a good thing.

Meanwhile, up until the point that the bank accepts the offer, the buyer is free to shop around for other properties, knowing that they have no money tied up in the short sale and that they can effectively cancel the offer should they find another property.

Never mind.

[monikac21]

short sales are a buyer's, seller's and realtor's nightmare. In a short sale situation the seller owes more on the property than the current market value. This is an unfortunate situation since some sellers can not make the mortgage payments anymore but they can not sell the property either without bringing money to close. Of course the seller can not do that either. Now the banks might allow the seller to short sale - that means theoretically the bank might probably take the loss and the seller can "walk" from the property. However it sounds better than it is. Some banks hit their sellers with a note for the difference - some won't. But regardless, the banks really don't want the loss and for sure they don't want to show the loss in their books. As long as the property is still in a short sale situation, they don't show the loss, the minute it is closed the bank has to show the loss they made.

Banks are stretching and stretching and stretching (sometimes I think they want the buyer to walk, so they can/have to start the short sale all over again and gain additional time.)

And yes it can take several month until the seller's bank either accepts or counters a short sale offer, counters or declines it. And all the time the buyer is hoping that they finally get the short sale approval. Sometimes the seller's lender will foreclose on the property in the meantime, totally ignoring the short sale offer on the table. In that case the buyer is out. Sometimes it even happens that the seller's bank gives the short sale approval with a closing date and goes ahead and forecloses on the property between the short sale approval and closing date - in this situation the buyer is out as well.

The crazy thing is that sometimes we have a short sale cash offer on the table, the bank lets everyone go through all steps and paperwork and documents to support the short sale, then declines the short sale offer and forecloses on the property and they get way less money with the foreclosure sale than they would have gotten if they would have accepted the original short sale offer. Makes no sense at all - unless the property had PMI insurance and PMI paid the difference in the bank foreclosure but would not have paid in the short sale situation - however that does not make sense either.

My current situation:

Short Sale 1: Had cash offer on a house at a golf course in Cape Coral, which I had as a short sale. Offer price was $ 320,000 cash. Bank declined offer and sold property in bank foreclosure for $ 160,000 about 1 year later.

Short Sale 2: Had cash offer on a short sale house in NE Cape Coral, bank approved the offer for $ 60,000 and set closing date, between approval and closing date bank foreclosed on property, then appologized and rescinded the foreclosure, asked us to resubmit everything again, we get another short sale approval, same thing happens again, property was sold in foreclosure, bank appologized and rescinded foreclosure, now we are at the third go around, working on this property since 05/2010.

short sale 3: Have offer on there since 10/10 will close it tomorrow. (Hopefully)

Some banks are easier to deal with than others but every short sale requires a lot of patients from everybody involved. What makes a short sale so difficult is that nobody really knows (for month) if the seller's bank will accept the offer or not and all the time everyone is just hanging in the air - not knowing what is going to happen.

[monikac21]

Originally Posted by Halifax2011

The buyer's money isn't tied up until after the bank accepts the offer.

At that point, it's basically a done deal (unless the buyer backs out because of an inspection or something similar) ... and assuming that the buyer actually wants to buy the property, this is a good thing.

Meanwhile, up until the point that the bank accepts the offer, the buyer is free to shop around for other properties, knowing that they have no money tied up in the short sale and that they can effectively cancel the offer should they find another property.

This is just a kind of right. legally the seller and the buyer have a binding contract the minute the seller accepts the buyers offer. This contract is contingent on the seller's lender's approval. In the contract there is a time frame until the seller's lender has to approve the offer. Up to this date the buyer can not (theoretically) back out - the only contingency is the seller's lender approval and the home inspection. Also the buyer does not always have money tied up, however sometimes the buyer does.