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This is just a complete joke. Is this what, the 3rd or 4th extension! Thanks congress for taking more of my hard earned money and giving it to people who dont deserve it. Appreciate it!
No, what's a complete joke is someone posting a comment without understanding the subject.
If you read exactly what i said then you will see this is what I said. Contract has to be signed (executed by both parties)
Quote:
Originally Posted by rjrcm
If the buyer and short seller signed the contract by April 30th, then it is executed for the purpose of the credit. The bank acceptance is a contingency of the executed contract. Your statement is true if the the seller did not accept and sign the contract by April 30th.
If you read exactly what i said then you will see this is what I said. Contract has to be signed (executed by both parties)
Thanks. It wasn't clear to me if you were talking about bank acceptance or seller acceptance/execution. The extension will help buyers of short sales with an executed contract that have not yet received bank acceptance.
In a bank owned property /REO the parties to the contract would be the buyer and the seller who is the bank. In a short sale the parties to the contract are the buyer and the owners of the property. In a short sale the bank has not started foreclosure proceedings against the owner.
It may also be worth noting that in the majority of cases, the sellers will not and most of the time can not sign and accept an offer without the banks approval. That is why the short sale process is so lengthy and buyers find themselves waiting a long time before they find out whether their offer is accepted, because the bank have to sign off on it before the sellers can agree to sell. They only way the sellers can agree to sell for the short price is if the bank agrees to it.
Quote:
Originally Posted by rjrcm
Thanks. It wasn't clear to me if you were talking about bank acceptance or seller acceptance/execution. The extension will help buyers of short sales with an executed contract that have not yet received bank acceptance.
In a bank owned property /REO the parties to the contract would be the buyer and the seller who is the bank. In a short sale the parties to the contract are the buyer and the owners of the property. In a short sale the bank has not started foreclosure proceedings against the owner.
It may also be worth noting that in the majority of cases, the sellers will not and most of the time can not sign and accept an offer without the banks approval. That is why the short sale process is so lengthy and buyers find themselves waiting a long time before they find out whether their offer is accepted, because the bank have to sign off on it before the sellers can agree to sell. They only way the sellers can agree to sell for the short price is if the bank agrees to it.
In my area at least, it is entirely normal for the seller to agree to sell, with bank approval only being a contingency for closing. So they are still executed contracts, only with a contingency, the same as if there was a financing contingency, or a home to sell contingency, or an inspection contingency, except this is a seller's contingency, instead of a buyer's.
In a bank owned property /REO the parties to the contract would be the buyer and the seller who is the bank. In a short sale the parties to the contract are the buyer and the owners of the property.In a short sale the bank has not started foreclosure proceedings against the owner.
It is not uncommon that a bank has started foreclosure proceedings while a home is listed as a short sale.
Quote:
It may also be worth noting that in the majority of cases, the sellers will not and most of the time can not sign and accept an offer without the banks approval. That is why the short sale process is so lengthy and buyers find themselves waiting a long time before they find out whether their offer is accepted, because the bank have to sign off on it before the sellers can agree to sell. They only way the sellers can agree to sell for the short price is if the bank agrees to it.
As Lacerta said, this is not the case around here. The seller can and usually does sign the contract without prior bank approval. As you noted, the bank is not a party to the short sale contract, only a contingency.
Here in Florida this is rarely the case. I certainly havent come across it. Also it doesnt really benefit alot of buyers, particularly first time home buyers who are squeamish about putting in multiple offers. Especially if they are relying on the bank to agree to their price and then there is the chance that they do not. With the length of time we are seeing banks making their decisions on short sales buyers may miss out on other better alternatives, particularly as we are seeing increase in home sales which has been ongoing here in Central Florida for quite a while. I had a client put an offer in on a property in the beginning of february and the bank finally got back to us at the end of May only to say they were countering $30,000 higher than the list price. Even with the extension, this isnt an ideal situation.
Quote:
Originally Posted by rjrcm
It is not uncommon that a bank has started foreclosure proceedings while a home is listed as a short sale.
As Lacerta said, this is not the case around here. The seller can and usually does sign the contract without prior bank approval. As you noted, the bank is not a party to the short sale contract, only a contingency.
Here in Florida this is rarely the case. I certainly havent come across it. Also it doesnt really benefit alot of buyers, particularly first time home buyers who are squeamish about putting in multiple offers. Especially if they are relying on the bank to agree to their price and then there is the chance that they do not. With the length of time we are seeing banks making their decisions on short sales buyers may miss out on other better alternatives, particularly as we are seeing increase in home sales which has been ongoing here in Central Florida for quite a while. I had a client put an offer in on a property in the beginning of february and the bank finally got back to us at the end of May only to say they were countering $30,000 higher than the list price. Even with the extension, this isnt an ideal situation.
I agree, a lot of short sales will probably still miss even the extended Sept. date.
We use a short sale addendum that allows the buyer to cancel prior to bank approval. That opens the door to look at other homes while waiting. Although some listing agents try to lock them in by requiring a partial upfront earnest deposit for 60 days.
I'm going to take this out of the link that was in the OP's post:
Now, just because YOU aren't getting the tax credit, don't rain on someone else's parade. Don't look at how many unemplyed people are not buying a home, look at all the first time home buyers who are finally dipping into the market, and helping reviving the economy.
I don't want or need the tax credit. We bought our homes with cash and had no need for a stimulous check at the time. Just watch the drain on the taxpayers in the near future. Glad some are getting a chance at owning a home, but I suspect they could do just fine without the gov handing them a check. If you need the credit to buy a home, perhaps you are premature in your investing.
Once again, the people who sought after the tax could afford the houses otherwise, they just decided to buy earlier than expected so they could get the tax credit. If buying a house 3 months earlier means $8,000 free then why wait? You saying "I don't want the tax credit" is preposterous, why would you not want free money? In buying a 10 million dollar home $8,000 is a drop in the bucket, but you'd never see the buyer saying "No thank you, I don't want free money". I understand the money isn't 'free' because it came from tax money, but that's for another discussion. I don't think you understand how hard it is for people to get a mortgage now. Underwriters don't take into consideration the 8k credit when they write up a loan so there are no unemployed people purchasing houses with the credit, a credit that people who even receive until months after they've moved in.
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