topic Re: Short Sale- A strong offer? What are my chances? in Boston

Short Sale- A strong offer? What are my chances?

mcarreiro — Tue, 07 Apr 2009 00:16:55 GMT

Hello, my name is Mark, my fiance and I have fallen in love with a particular home. It is located in a very nice town in southeastern MA and is in a 6 lot subdivision. I would say that the comps would be 450k+. The home has been on the market for apprx 215 days, it started out at 469,900 but didn't have any showings. Then the price dropped to 444,000, had some showings with one weak offer I think around 325K range. Now the home is listed for 399,000 has had about 18 showings and another 2 offers including mine. We have been working soley with the listing agent who gave us the idea that the competing offer is in the 365K range.

Balance owed on the mortgage is 417,000

Our offer:

379,000

76,000 down

We will pay for the $500 TitleV inspection

Offer good for 45 Days

Now, the "owners" of the home are divorced, not living there. They are still waiting for the bank to agree to the short sale. It has been about 3 weeks since the other offer (365k) was submitted to the bank. I'm not really concerned too much about the other offer because I think ours is stronger. I have recently locked in a rate for 60 days with my bank. What are my chances that the bank will agree to this short sale and within 60 days. I WANT THIS HOUSE!!!!

Best,

Mark

Re: Short Sale- A strong offer? What are my chances?

Alexander — Tue, 07 Apr 2009 04:14:10 GMT

What banks are involved in the short sale? You can usually find out on masslandrecords.com.

Also from what I have herd local banks tend to respond faster then larger non-local banks. Also I know one person who wanted to buy a short sale and waited for 5 months and it finaly closed.

Also if you're going to negotiate a short sale you need someone (e.g. a buyers agent for something) who will just call the bank. Every number they can find until they get to someone who has some short of control. Then just keep calling that person over and over and so on. Even with that its still going to take 3-5 months but at least it will be a succsesful deal.

Re: Short Sale- A strong offer? What are my chances?

mcarreiro — Tue, 07 Apr 2009 13:34:51 GMT

ok, I didn't want to get a buyers agent involved to begin with because I thought it might cause conflict since the isting agent is acting as a dual. The listing agent made us sign a non-compete anyway.

BTW I forgot to mention that the seller has acceted my offer, not sure if that matters much.

Is this a good offer?

Re: Short Sale- A strong offer? What are my chances?

Alexander — Tue, 07 Apr 2009 15:56:48 GMT

It matters a lot that the bank has accepted the offer. For one thing it means that they can't accept another offer that might be on the table. After they have accepted the offer there are only two things that can really go wrong.

1. The bank just decides to foreclose on the property wiping you're offer of the table. If they do that you can still get the house you will just need to wait maybe 2-3 months before the bank forecloses and then buy it at auction or off the MLS as a REO. Also REO's tend to respond a lot faster then short sales.

2. The bank just does not respond for months on end (that can happen) and in the end there start to be issues with the property itself e.g. pipes bursting or mold growing etc. and then you might need to back out of the deal.

FYI: to everyone else out there. Never ever sign a "Dual Agency Form" they say all this stuff about how they are required by law etc. etc. but that is just not true at all. Don't let them screw you over. Don't sign anything but a offer to purchase and a purchase and sale. Or bank addendums if need be.

Re: Short Sale- A strong offer? What are my chances?

mcarreiro — Tue, 07 Apr 2009 22:28:53 GMT

Hi Alexander,

the bank hasn't accepted the offer yet, just the seller has agreed to the 379k. Good to know that about the dual agency form, I wasn't are of that.

Does anyone think the bank will accept my offer?

Message Edited by mcarreiro on 04-07-2009 03:28 PM

Re: Short Sale- A strong offer? What are my chances?

Shoeshine — Thu, 09 Apr 2009 02:57:20 GMT

short sales are a complete waste of time :smileysad:

Re: Short Sale- A strong offer? What are my chances?

TheREGuy — Thu, 09 Apr 2009 16:16:44 GMT

I completly disagree Shoeshine. I think that if you play you're cards correctly, in a short sale situation you can come out with a pretty good deal.

Re: Short Sale- A strong offer? What are my chances?

mcarreiro — Thu, 09 Apr 2009 17:11:18 GMT

What are my chances that the bank will agree to this short sale and within 60 days?

Re: Short Sale- A strong offer? What are my chances?

TheREGuy — Thu, 09 Apr 2009 17:28:13 GMT

Relativly high, I think they will get back to you in that time. Once you get the property under contract then its another 3 months or so. Just so you know you are looking at a 3-5 month process. But just be patient if you really like the house just wait.

Re: Short Sale- A strong offer? What are my chances?

Shoeshine — Thu, 09 Apr 2009 19:38:14 GMT

TheREGuy wrote:
I completly disagree Shoeshine. I think that if you play you're cards correctly, in a short sale situation you can come out with a pretty good deal.

My personal experience is ...........

I have put earnest money (10%) down on two short sales houses .

Never heard back from the Mortgage holder, (Bank) on either property

Withdrew my offers on both properties after more than two months of waiting

on each property .

Short Sales are simply a scam to allow people, (deadbeats) to stay in houses longer

without paying any money to the Big Bad Bank .

Deadbeats, will go to a free tax payer funded financial couseling agency,

who will advice them to how to play the short sale stalling game.

Case in point again , the two houses i put offers in on,

are both still occupied by the deadbeat owners .

The deadbeat owners have been playing this game for more than a year on one of the houses,

and approaching a year on the other .

Short Sales are simply a stalling tactic used by deadbeat owners and bleeding heart tax payer funded

agencies to stall the Bank.

And the Banks really dont care, because they are hoping to sell the non perfoming mortgage to the taxpayers inder one of Obamas bailout plans .

Eventually the Taxpayers, that's you and me, will own all the houses currently occupied

by deadbeats who wont pay their mortgages .

And of course Barney Frank wont let these "victims" get kicked out .

You do know that 60% of loans rewritten by the FHA to help these wretched souls will go back into default within 2 months right ?

Within 1 year 85% of loans rewritten by the FHA to help people are back into default.

Take it from someone who has tried to buy more than one short sale,

it is simply a scam to stall the foreclosure process.

And the Scam is being perpetuated by both the Homeowner and the Bank

until Uncle Sam and the Taxpayers get stuck with the property .

Caveat Emptor my friend, Caveat Emptor .

Re: Short Sale- A strong offer? What are my chances?

TheREGuy — Thu, 09 Apr 2009 23:44:54 GMT

Well mcarreiro said that the "deadbeat" owners got a divorce and are already gone. So why would the owners care. In fact they probably want to be done with the place too. Why would they try and play a scam. They could just fly the coop and be done.

Re: Short Sale- A strong offer? What are my chances?

Shoeshine — Fri, 10 Apr 2009 20:05:36 GMT

TheREGuy wrote:
Well mcarreiro said that the "deadbeat" owners got a divorce and are already gone. So why would the owners care. In fact they probably want to be done with the place too. Why would they try and play a scam. They could just fly the coop and be done.

Although I missed the part about the House being empty

I stand by my statement that Short Sales are a waste of time.

While a person is sitting around waiting to hear back about their short sale offer,

they very well could have found a good deal on a Bank owned, or Government owned

property such as a HUD or Fannie or Freddie property .

Re: Short Sale- A strong offer? What are my chances?

InfosolutionWiz — Thu, 23 Apr 2009 21:40:30 GMT

Shoeshine ,

SHORT SALE is NOT a SCAM as you have stated, my friend! I really don’t know what kind of short sale situation you find yourself in the first place, because you have to do some due diligence before you submit an offer in a short sale situation.

I am currently working on Short Sale number 7 here in Coral Springs Florida one of the top 10 best cities to live in America. I have NEVER had any problems with a short sale as you describe. YES, in some cases it may take anywhere from 2 to 4 months to here from the bank especially in a situation where there are 2 banks involve. The short sale I am getting ready to close on, I submit the offer on February 24, 2009. Today April 23, 2009 I receive a call from the listing Agent with an acceptance from the bank. I save my clients thousands of dollars on short sale. To secure my client offer in first position, sometimes I attach an addendum to the short sale addendum stating that upon the sellers accepting this offer, they can (or cannot) accept other offers ONLY as back up which may NOT be submitted to the bank.

Most Short Sales are price at or below current market price. However, I still get them anywhere from 10 to 15 thousand below what the bank is asking. In the end you end up with a property, in most cases, that need no fixing or major rehab that has anywhere from 20 to 100 thousand dollars worth of equity. You have to know how to get your offer accepted, don’t ask for too much (lock stock and barrel). Remember, in a short sale the seller and the bank is getting NOTHING. The bank is selling at a loss. In some cases you go low and ask for nothing after you visit and done your research on the condition of the property. If you have the time, patients and a smart Agent short sale is the best way, you will save a lot!

TO Mcarreiro, NEVER sign a dual agent form. Get yourself a good Buyers Agent for FREE. Dual Agent Is Illegal here in Florida I don’t know what the status is in your state. I hope your short sale was a success!

Re: Short Sale- A strong offer? What are my chances?

bujji — Sun, 26 Apr 2009 05:16:49 GMT

Hi,

I made an offer on a short sale property, for which I chose to sign the dual agency with the sellers agent (I was hoping this woul dbe an inventive for the sellers agent to help me make a winning bid)

He made me put the offer slightly lower than the asking and only 15% down. Although I was willing to put 20-25% down.

Now, I havent heard from the agent in a month or so, despite multiple calls and emails to update me on status. Am I getting paranoid, or was this a gimmick to get an offer in for nefarious reasons?

Can I contact the bank directly to check on status?

Re: Short Sale- A strong offer? What are my chances?

REexpert — Mon, 27 Apr 2009 18:17:55 GMT

Just wanted to address the mis-respresentation regarding dual agency in Massachusetts. The dual agency form simply obligates the real estate agent to be neutral with regard to a specific transaction and explains this to the seller and/or buyer. It is just a notice, not a contract. Get an experienced Realtor to explain such things to you.

Re: Short Sale- A strong offer? What are my chances?

Shoeshine — Tue, 28 Apr 2009 02:49:13 GMT

InfosolutionWiz wrote:
Shoeshine ,

SHORT SALE is NOT a SCAM as you have stated, my friend! I really don’t know what kind of short sale situation you find yourself in the first place, because you have to do some due diligence before you submit an offer in a short sale situation.

I am currently working on Short Sale number 7 here in Coral Springs Florida

Not sure about Coral Springs Florida, but my multiple experiences in Massachusetts

is that Short Sales are a complete waste of time, and often a stalling tactic by the current owner

to simply stay in the property longer and stall the bank from foreclosing.

Re: Short Sale- A strong offer? What are my chances?

mcarreiro — Sun, 10 May 2009 23:53:19 GMT

ok here is the latest,

I recently signed a purchase and sales agreement for 379,000, about 2 days later the bank ordered an appraisal. The appraisal was done on the following Monday. The appraiser valued the home at 381,000. The realtor said he was 1.5 hrs late and he owed her one. I honestly was not expecting the appraisal to be so close to my offer, which is Great! Now we are waiting to here from the bank again, it's been over a week and I haven't heard a peep. I'm getting really anxious about this, how are my chances looking?

Message Edited by mcarreiro on 05-10-2009 04:52 PM

Message Edited by mcarreiro on 05-10-2009 04:53 PM

Re: Short Sale- A strong offer? What are my chances?

Alexander — Mon, 11 May 2009 00:41:37 GMT

Much, Much better...

FYI: As far as I know if they bank does something like decide just to foreclose then you could sue them for breach of contract...so they won't...

Re: Short Sale- A strong offer? What are my chances?

mcarreiro — Thu, 14 May 2009 23:43:17 GMT

they accepted our offer, short sale appoved!!!!!!!!!!!!!!!!!!!!!!!!!.

now we have to close on or beforeJune 10th, my rate lock expires June 4th. I have to put the utils in my name and I'm going to have a home insp on upcoming tuesday for peace of mind. Hopefully wednesday my banks appraiser will go out.

Re: Short Sale- A strong offer? What are my chances?

DisillusionedHB — Wed, 27 May 2009 15:08:27 GMT

My offer was accepted on Oct. 21st 2008 on a short-sale. I have waited 7 months. The house is abandoned as it was a rental property of the seller's and it was vacant a month after offer acceptance. The attorney (Not sure if in-house with bank or hired?) is on their 3rd paralegal. The realty sign is still up in the yard so that scares me for some reason. The price offered and accepted is the exact same price that the seller paid 3 years prior, and the value on the home is easily within range of the price. In fact, the average home value in the area is 50k more than this home's assessed value, so it has potential.

Is there anything I can do to expedite this process?

Sincerely, Distraught Home Buyer.