Job situation

[nmp]

Originally Posted by stevep111

You have to be careful with short sales because some of them may try to stick a clause in the contract that if the value returns to the home you would then be responsible for picking up the difference. They take a long time to complete because the banks take as many offers as they can get and take as much time as they want to get the most out of a sale before they let go.

I am under contract to buy a BoA short sale (signed 1/29/2010) and have done a lot of reading on the subject. I have never read of the bank trying to get the buyer to pay more later, the seller yes, but never the buyer. I would laugh and walk if they told me that.

As far as multiple offers that depends. My understanding from my Realtor is that the "proper" way to do a short sale is to submit a single best offer to the bank and I am told that is what the selling Realtor did in my case. The bank can then accept, deny or counter that offer.

My belief is the reason that short sales take so long is because they are completely buried in work and they can not quickly hire and train enough people capable of making these important decisions so each person has a huge workload (I'm glad I don't have that stress!!).

That's my opinion anyway, maybe a Realtor will chime in.

[Galagaone]

Originally Posted by nmp

I am under contract to buy a BoA short sale (signed 1/29/2010) and have done a lot of reading on the subject. I have never read of the bank trying to get the buyer to pay more later, the seller yes, but never the buyer. I would laugh and walk if they told me that.

As far as multiple offers that depends. My understanding from my Realtor is that the "proper" way to do a short sale is to submit a single best offer to the bank and I am told that is what the selling Realtor did in my case. The bank can then accept, deny or counter that offer.

My belief is the reason that short sales take so long is because they are completely buried in work and they can not quickly hire and train enough people capable of making these important decisions so each person has a huge workload (I'm glad I don't have that stress!!).

That's my opinion anyway, maybe a Realtor will chime in.

I've never heard of that either. There is NO way they can make you responsible for the debts of others. There is a guy (and I doubt he's thee only one) in Palm Beach county who purchased a short sale. But the paperwork transferring ownership, through short sale foreclosure, to him is lost in the pile of foreclosure filings. So, now he's out 85 grand or so and has no home.

Not sure if this is possible in St. Lucie county as we've had less foreclosures than them. But as a percentage we are right up there, if not ahead of them.

[Shoreone]

Originally Posted by Galagaone

I've never heard of that either. There is NO way they can make you responsible for the debts of others. There is a guy (and I doubt he's thee only one) in Palm Beach county who purchased a short sale. But the paperwork transferring ownership, through short sale foreclosure, to him is lost in the pile of foreclosure filings. So, now he's out 85 grand or so and has no home.

Not sure if this is possible in St. Lucie county as we've had less foreclosures than them. But as a percentage we are right up there, if not ahead of them.

People can not just take 85,000 and keep it without giving him his home. Maybe he is not IN his home yet but if they just kept his 85,000 they would be hit with such a big lawsuit.

[Galagaone]

Originally Posted by Jlabruno

People can not just take 85,000 and keep it without giving him his home. Maybe he is not IN his home yet but if they just kept his 85,000 they would be hit with such a big lawsuit.

Yea. It's just not been processed. It will be, but who knows when. He's caught in a log jam.

[stevep111]

The lender can do anything they want up until the day you close. It has happened before that they have changed the price of the house several times before closing. Believe me they want the most money they can get out of a house whether the buyer or seller pays. They have two things in their favor. 1 they have already collected money on the Mortgage with interest for a period of time and 2 they have the option of waiting until the house goes into foreclosure.

Short sales are only for those people who can wait and afford the process. I think the only way I would do one is if I were going to pay cash for the house because money talks.

The lender is under no obligation to honor any commitment until the documents are signed on the final price so you risk getting a great deal, spending money on a home inspection, appraisal and all of the other money you have to lay out up front and then the lender changing their mind and your out hundreds of dollars.

[FlaLadyB]

A short sale BUYER is not going to be liable to pick up someone elses bills. It's the SELLER who is going to have it all.

A SHORT SALE can have a contract 2 different ways - one is that they take multiple offers. The other is that they DO NOT take multiple offers. OR...you can take the addendum that is available and MARK OUT the part that says the Seller can keep the house on the market and continue to take offers. It's rather simple and each listing is already marked if it is taking multiple offer or not.. or JUST ASK.

FORECLOSURES DO TAKE MULTIPLE OFFERS. The bank wants whoever they can get the most money from - preferably CASH- and many times offers go past the asking price and they know it.

Yes the banks play with the money and I have 2 of them are doing it to my buyers now saying they won't pay the HOA arrears and the secondary lender wants more money. GAMES! So it depends on what the bottom line is to take it or not. They have even changed negotiators twice on us and started over again on a CASH SALE! Now that are doing ANOTHER BPO (appraisal)! I hate games! We should have closed a month ago! Another says they want $128,000 for a house and I have NO IDEA where they came up with that amount since the comps dont even come close!


OH and BY THE WAY- that NEW LAW that says they have to give you an answer in 10 days- forget it!! THE BANKS DONT HAVE TO COMPLY AND THEY WONT do dont expect anything to change! How could it when they can't give you an answer for MONTHS now? I don't think they are about to hire 100 more people to do it any faster!

[FlaLadyB]

Originally Posted by Galagaone

Yea. It's just not been processed. It will be, but who knows when. He's caught in a log jam.

I doubt he has "purchased" the home- he is probably "in contract" but he certainly has not closed. He's waiting ....just like everybody else. If he didn't plan on the wait and had to move...well, that's what happens to a lot of people. That's also why no matter how many times we tell people buying short sales - IT CAN TAKE UP TO 6 MONTHS - they don't listen to that part and a month or 2 goes by and they say want to move in, but the process is still ongoing and there still is not answer from the bank on price or anything. Some drop out. Others have to move someplace else in the meantime. I have one crying with 3 kids.

Nope...not fun, on anyones part, including mine. Many times I feel helpless when this happens but there is NOTHING I can do and the banks could care less. The last one said... well, I'll get to it when I get to it. If they walk... they walk. Love the attitude.

[stevep111]

Yes your right I got that fact in reverse. Thank you for correcting me. My ego hurts. LOL