Short Sales are a Joke! (for sale, foreclose, HOA)

[Synergy1]

Where I live in Eastern Fl the homes are going for under the cost of the land once was by itself. Homes in the section were being built for $1.2m + while the land was going for $685k. Nowadays the home and lands are $600-$850 and still not being sold.....THe place went bankrupt and the new buyer paid $11m for the entire new clubhouse, PGA type golf course, many many empty lots and basically the right to sell and make a profit.

A short sale is just that short of what the home is supposedly worth. My brother and I buy and sell homes just to flip for profit and we have been doing it for a about 10 years now. Sometimes we have bought 2 homes in 6 months while other years we bought 11 in a 2 years so it varies and in DC we bought two 4 year old duplexes next to each other for 140k each. Installed new downspout drain pipe and $400 in paint in each then sold them each for $225k to a Doctor. Those homes come by once in a lifetime.

I guess if someone want to buy and hold, the time to buy is now...

[jsimon521]

Originally Posted by Synergy1

A short sale is just that short of what the home is supposedly worth. My brother and I buy and sell homes just to flip for profit and we have been doing it for a about 10 years now. Sometimes we have bought 2 homes in 6 months while other years we bought 11 in a 2 years so it varies and in DC we bought two 4 year old duplexes next to each other for 140k each.

Hello! I have a short bid on a home right now. What did you find, having bought SO many, that your average wait time was to hear back from the bank as to whether they are acccepting or countering your offer? (I offered full asking price and the agent is not accepting other offers). Also, how often did the banks ask you for MORE than listing?

Thanks! Jenn

[nhkev]

Originally Posted by jsimon521

Hello! I have a short bid on a home right now. What did you find, having bought SO many, that your average wait time was to hear back from the bank as to whether they are acccepting or countering your offer? (I offered full asking price and the agent is not accepting other offers). Also, how often did the banks ask you for MORE than listing?

Thanks! Jenn

I have gotten answers as soon as one week and I had one that took 100 days for an answer-- it all depends on the past history of the realtor and lender If the realtor listed a property for 75k and someone gave offer for 60k and the bank came back with a counter of 74k but the buyer didn't complete transaction the realtor already has a pathway to the lender and a number they'll accept. if you are the first offer the realtor has no idea what the lender will accept or how long- ask the realtor if they have had any dealings with the lender on this property their answer should give you a good idea

[Synergy1]

First of all the asking price is a lure and not what the home is or should be going for in your market place. I sat in on a short sale that went for 200k on the water and was a tear down. The ground was worth $175k and I bid $150k. Funny because the home never again was fixed up or sold again except foreclosed on around 4 months ago. All home sales the bidder needs to do a thorough job on the area, neighborhood and the home prices before the home price boom then fall. We do and we are doing fine. We may bid on 4-5 in a month but never be able to do close sometimes every 6 weeks.

We have a few realtors and banks looking out for us. Some agents here are doing foreclosures only and others are combining their efforts. Short sales are tough and we like to see higher end homes and not the regular ones and that is not because we can or cannot afford the home it is just because we find more call backs to provide the banks with another bid the higher home often requires.

We just closed on a short sale we bid up to $225k..Normal sales takes us 3-4 weeks but this one took 9.5 weeks. This sale came after several months and the home was built in 2004 for $325k. In a normal RE climate that home area should have risen to at least $400k in the last 4 years. Instead it was shorted $100k from its cost to build.

We also won a bid on a home 16 months ago + the neighbor's home was kind a beat up to the event of 8k so we offered to paint and do fixing up on their home for free. The home was fixed painted so we could bring in a higher bid and we did on the home we owned. Win-Win situation.

We are just a couple of old semi-retired guys having fun.

[jsimon521]

I can't take this crap. I vented on another thread too. The listing price should be what the bank is willing to accept. Half of these darn banks aren't even from the area and god knows what they're using as comparables in deciding WHAT the house is worth!

The short sale I put a bid on was listed for $83,000. That is the MAX I am approved for, but I still put in a full price offer. The house is tax assessed at $93,000. It previously sold in 1996 for $86,000 (12 years ago for $3,000 than list now!). So I don't know what to make of it. There are similar homes asking $90-$100k in the same zip code. I don't know what the bank is going to do. Are they going to risk the sale for $10,000 of which they won't even get all of it since other lenders are going to get a cut? This is bull! LIST PRICE SHOULD BE THE PRICE YOU'RE WILLING TO ACCEPT! Why isn't this like false advertisement? How in the hell is it legal to advertise something for a certain price and then say the price is more when someone tries to buy it? I have LITERALLY been pulling my hair out. My nerves are shot from all the horror stories I'm reading and I keep twisting my hair in frustration.


How am I able to guess if my full list offer will be accepted?

PS: GOOD THREAD!

[nhkev]

Originally Posted by jsimon521

I can't take this crap. I vented on another thread too. The listing price should be what the bank is willing to accept. Half of these darn banks aren't even from the area and god knows what they're using as comparables in deciding WHAT the house is worth!

The short sale I put a bid on was listed for $83,000. That is the MAX I am approved for, but I still put in a full price offer. The house is tax assessed at $93,000. It previously sold in 1996 for $86,000 (12 years ago for $3,000 than list now!). So I don't know what to make of it. There are similar homes asking $90-$100k in the same zip code. I don't know what the bank is going to do. Are they going to risk the sale for $10,000 of which they won't even get all of it since other lenders are going to get a cut? This is bull! LIST PRICE SHOULD BE THE PRICE YOU'RE WILLING TO ACCEPT! Why isn't this like false advertisement? How in the hell is it legal to advertise something for a certain price and then say the price is more when someone tries to buy it? I have LITERALLY been pulling my hair out. My nerves are shot from all the horror stories I'm reading and I keep twisting my hair in frustration.


How am I able to guess if my full list offer will be accepted?

PS: GOOD THREAD!

I understand your frustration but you must remember the bank is not the seller- the seller will accept the asking price, the realtor will accept the asking price, but the bank needs to agree to accept less than what they are owed.. if a realtor goes to a bank , the bank will not say what they will accept , they say "bring us an offer" only deal with ones that say "bank approved this price" or at least the realtor has already brought some offers to the bank and may have a streamlined process.. there are some previous threads on short sales I outlined a couple things that I have done to successfully close some

[jvelte]

Originally Posted by nhkev

I understand your frustration but you must remember the bank is not the seller- the seller will accept the asking price, the realtor will accept the asking price, but the bank needs to agree to accept less than what they are owed.. if a realtor goes to a bank , the bank will not say what they will accept , they say "bring us an offer" only deal with ones that say "bank approved this price" or at least the realtor has already brought some offers to the bank and may have a streamlined process.. there are some previous threads on short sales I outlined a couple things that I have done to successfully close some

Like I said earlier in the thread, if the bank is the one making the final decision, then THEY should be the ones to set the price, NOT the home owner! Most short sales are a bait & switch false advertising technique that should be made illegal.

[PineIslander]

So you want the bank as your Realtor? Like I said before, if you have a good Realtor then you should have no problem. you need to get past asking price, and make an offer of market value. It may be more than they are asking but so what?

[jvelte]

Originally Posted by PineIslander

So you want the bank as your Realtor? Like I said before, if you have a good Realtor then you should have no problem. you need to get past asking price, and make an offer of market value. It may be more than they are asking but so what?

Who ever said anything about wanting the bank as a realtor?? What does a realtor have to do with any of this post??? I'm talking about pricing the home. The owner vs the bank. If the bank makes the decision of what they will accept, then they should be the ones setting the price, rather than an owner (who has nothing to lose) baiting a low price to get people in even though the bank may not accept that price. Offering 'market value' as you state isn't exactly getting the best deal now is it? Sure, it gives agents more commission.

[nhkev]

If you want the bank to set the price then do this... Go to the major banks web sites .. such as wells fargo , countrywide, bank of america. run a search for REO properties which simply means the banks own the property . Not only do they list a price but they already know exactly what they will accept. You may even be able to get listings from them of new properties coming a couple days befor they hit the mls