topic Re: Short Sale Taking Forever, should I be worried? in San Diego

Short Sale Taking Forever, should I be worried?

Larsonite — Fri, 15 Oct 2010 20:12:38 GMT

276 Days!

405 28th, San Diego, CA 92102 | MLS# 100002264

I'll be honest, my listing agent is very slow to respond and when she does, she doesn't really give me much info. From what I've gathered, the second lender sold "it", not sure what "it" is, and needed to redo the BPO because it had expired. I'm really new to all of this and with the lack of info from the listing agent, I'm kinda lost where we're at and why this is taking longer then most short sales I've seen.

FYI, I don't have a buyers agent because I coudn't find a house, rather listing agent, that wanted to work with my agent at the time. All the responses were negative untill I called the listing agent myself. My offer was excepted imediatly. I have been looking at other properties but nothing has materialized.

...should I be worried?

Any insight is greatly appreciated!

Thank You,

Jeremy

Re: Short Sale Taking Forever, should I be worried?

Nanomug — Fri, 15 Oct 2010 21:06:50 GMT

You should not be any more worried than is warranted in any short sale.

Short sales have a very high rate of failing. Some take over a year to close.

Sellers of short sales may or may not want to sell the home. Sometimes they do and sometimes they want to drag out the process before foreclosure.

The sellers lender(s) may prefer foreclosure over a short sale. The second and other lien holders don't like to agree to a short sale.

Listing agents rarely make good agents for buyers of their listings. If you get to the approved stage and enter escrow you will likely discover that the listing agent will not be much help at all in negotiating repairs or even making sure that the home is left in good condition with all its parts in place.

Waiting for a short sale is tedious, upsetting and takes a lot of fortitude. Because of this it is wise to continue looking for other homes and placing offers on them.

Re: Short Sale Taking Forever, should I be worried?

Dag44 — Sat, 16 Oct 2010 03:49:56 GMT

Larsonite - How's that neighborhood over there? Is that over in the scary part of downtown? It looks like it. I'm curious as to why you decided to buy over there.

Re: Short Sale Taking Forever, should I be worried?

Larsonite — Sun, 17 Oct 2010 21:18:28 GMT

Nanomug,

Thanks for the info. I've heard that Short Sales fail often and I've been looking at other properties. But no luck on a plan B.

The listing Agent actually called me a few months ago to tell me we were going to Escrow. Turned out, my listing Agent was confused. What? I guess the first of two Lenders said yes and she jumped the gun.

Dag44,

There's a few reasons I chose this neighborhood, technically Grant Hill, but really Logan Heights.

First is my price range. My max loan I can get it 150K.

The Second reason is location. I don't own a car and ride a bicycle to work in Point Loma. I've been renting in Golden Hill for the last 5 years and have a lot of friends in the area. I want to stay close but City Heights is too far a ride to work and any further south is just too far from my friends.

Re: Short Sale Taking Forever, should I be worried?

SammiB — Tue, 19 Oct 2010 23:14:37 GMT

Hi Jeremy,

So 276 days is long but not unusual. The agent being slow to respond and giving you little info is also typical, my guess is she is getting limited & vague info herself. Based on my experience, I would ask her to get a copy of the first lienholder's approval of the short sale. This is very important for you to have because it should clearly list a deadline date on it, i.e., the letter will state the short sale must close escrow by a certain date. The first bank doesn't want to get jerked around by the second bank so they will set a deadline. If you can get a letter showing a date, this will greatly help you. If the deadline date has passed, then you have a tremendous amount of information..It doesn't mean it won't go through but it indicates it's going to be more complicated and take longer. GOOD LUCK. Looks like a killer deal!!!!!!

Re: Short Sale Taking Forever, should I be worried?

danheilbrun — Tue, 19 Oct 2010 23:46:00 GMT

It is not typical that it is taking forever, HOWEVER it SHOULD NEVER be typical that the listing agent doesnt tell you anything, or even a little bit. They should know what is going on with the bank as they should be calling every week. They should know everything that is going on with the lender and what they dont know, they should have a good theory on what is going on. My guess is that they are just waiting for a good response when they should be DEMANDING IT! I know this because I have had a short sale since March and I have gone after the bank every week until I get what I want. We are almost done and I have kept the seller and the buyer and even the neighbor of the house abreast on what is going on. This transparency ensures integrity and communication instills trust in the agents you choose to represent your interest.

But then again, the listing agent is not representing your interest at all, is s/he?

Re: Short Sale Taking Forever, should I be worried?

Larsonite — Wed, 20 Oct 2010 21:28:35 GMT

Thanks SammiB & danheilbrun,

I appreciate both of you responding. I do think it's a really good deal. Some have trouble with the area but it is closer to the nice area of Golden Hill then most think and it really isn't as bad as its reputation.

My goal is to turn it into a rental up top and convert the lower into another 2 bed rental. In time I think I can make double the cost of my mortgage.

My listing agent is very hard to get info from but it sounds like you guys are right, she's probably not getting much info either.

I'm trying to wait patiently and look at other options but there seems to be a freeze in my market for houses. I tried to buy almost 2 years ago but all the advice, bad advice, told me to hold out and more houses would be available. I thought differently, based off my research, and this was the only place I ended up with. Since then, nothing has come on the market that is even half this house.

Again thanks for the responses. I'll follow up with some more info, if and when, I get it.

Re: Short Sale Taking Forever, should I be worried?

Larsonite — Fri, 18 Feb 2011 08:45:43 GMT

Just to put this out there but it's been 402 days since my offer was excepted. Last I heard the BPO expired and needed to be done again. I'm at a lose for words. Not sure what to do or if there is anything I can do. Just wait and be patient, I guess.

Re: Short Sale Taking Forever, should I be worried?

Nanomug — Fri, 18 Feb 2011 20:23:13 GMT

and in the meantime look for another home.

Re: Short Sale Taking Forever, should I be worried?

DianeKGordonK — Wed, 23 Feb 2011 21:29:19 GMT

Looking at this property in MLS and count records, I see it was actually on the market for 460 days.

There was a notice of trustee sale in 2009 for Final Judgment Amount of $461,081 on the first loan and $10,715 on the second. The $130,000. List price is very low compared to the amounts the lenders will be losing.

Re: Short Sale Taking Forever, should I be worried?

Larsonite — Wed, 23 Feb 2011 23:44:42 GMT

Thanks for the insight. I'm curious what it means that the listing price is very low? I know the obvious, but what does that mean as for the likelihood I'll get the house. Should I be even more concerned, lol? Do Short Sales last this long and not work out? My listing agent keeps telling me that most short sales won't go this long if they aren't going to happen. I really don't believe much of what she says but I'm curious if she does have a point.

Re: Short Sale Taking Forever, should I be worried?

elbarco — Sun, 27 Feb 2011 15:29:37 GMT

Banks are dumb, but not entirely stupid (well, not all the time). This means that short sales can be had at a discount, but if the price is super low, its probably not gonna go at that price, they will whittle you up to where you might be getting a 5 or 10% discount to market if you still want the deal (then you need to evaluate the condition of the home vs. what 5 or 10% more will get you). A super-duper low short sale price, to me, is a seller screaming for an offer, any offer, to keep their house in the short sale process and away from foreclosure so they can live rent-free for longer. What a deal, keep soliciting short sale offers from unsuspecting rubes, getting real estate agents to work for commission processing your short sale and you get to stay in the house and stockpile your mortgage payments in your bank account so when you finally get out, you have 2 years of cash stuffed away to rent a place for a few years while your credit is repaired. This is not everyone, but they are out there. If the only response you get is thanks for the offer and we'll get back to you is a year or so, then you need to start scratching your head as to what is really going on. The other type of short is one that really doesn't want to sell, and is throwing offers up to the bank to delay in hopes that the market and their financial situation will somehow get better. In some cases the banks are dragging feet too thinking that appraisals will start to get better so they can up the prices on the shorts as well. You should ask your agent to set up a conference call with you, the agent, the seller and the seller's agent and have a list of 5 simple questions you want to know. Ask them and see if your BSM (bull^&* meter) goes off the charts or if you are getting the real story.

Re: Short Sale Taking Forever, should I be worried?

Larsonite — Wed, 02 Mar 2011 05:18:07 GMT

elbarco,

Thanks for the info. I'm not really sure what category I fall in and if I can get a conference call with who you suggested. The listing agent gives me the run around but I've been in regular contact with her since my offer was excepted. I also offered 10K over the listing price because I wanted them to know I was serious and not going to run. I also thought it was a deal even at the price I offered and what's 10K over 30 years if I can get a house and take advantage of the bad market.

I'll give my listing agent a call to see what she can set up. From what I know it's in the second lender's hands and they just did an updated BPO. The also asked to get an updated Pre-Approval. It's been a two weeks since I got them the info.

I'm not sure how they would get more money out of me but I'd be willing to go another 10K on my loan if that got me in the house asap.

FYI, I have been looking and looking at all other houses but I haven't had any luck. My market has really dried up. I haven't given up but I just haven't found anything else that works for me.

Re: Short Sale Taking Forever, should I be worried?

Larsonite — Tue, 22 Mar 2011 03:46:33 GMT

How did this happen?

I've been waiting on this short sale for over a year and it's now relisted and remodeled. No phone call or email by the listing agent. Do I have any ability to change or challenge this?

I'm kinda in shock but I guess I should have expected this from a short sale.

http://www.redfin.com/CA/San-Diego/405-407-28th-St-92102/home/5856834

Re: Short Sale Taking Forever, should I be worried?

Nanomug — Tue, 22 Mar 2011 09:41:04 GMT

That's really weird especially that there hasn't been a sale. Is it in the same price range you were looking at? I'd contact my agent and the short sale listing agent (since you have been in contract) to see what happened.

There isn't enough info to know if you could challenge anything. The sellers were selling pending bank approval. Investigate and post back. This is interesting.

Re: Short Sale Taking Forever, should I be worried?

Larsonite — Tue, 22 Mar 2011 15:35:47 GMT

It was origanally listed at 130K, I offered 140K. It's now 225

I tried my Listing Agent but no response yet. I know it's weird because who would remodle in the middle of a short sale. And how did it fall out of being a short sale. I think there is something really fishy about all of this.

I'll keep updating the more I find.

Re: Short Sale Taking Forever, should I be worried?

Larsonite — Tue, 22 Mar 2011 23:22:30 GMT

I just found out that the House was sold at the court house steps 33 days ago. I still haven't received a response from the Listing Agent but I did receive a text that she will call.

I know this house is probably out of my reach, or at least it open for competition again. I'll keep this updated as I get more info.

Re: Short Sale Taking Forever, should I be worried?

fk123 — Fri, 25 Mar 2011 19:20:12 GMT

Price dropped to 195! Maybe you can try offering your price again?

Good luck!

Re: Short Sale Taking Forever, should I be worried?

Larsonite — Sat, 26 Mar 2011 06:24:01 GMT

I called up the people who bought it and told them my story. I told them what a ghetto it was and obviously because of how much I could spend, I was looking in the ghetto. The next day it went down from 225 to 195. AMAZING!

I'm gonna offer 150 but that's my max. I doubt I get it but what a great Short Sale Story!

I'm on to two other houses so I'm not that worried but I did see the potential and so did they. I bet they make at least 80K off new carpet and paint in less then a few months.

Man do I want to get that ball rolling!

Re: Short Sale Taking Forever, should I be worried?

Nanomug — Sat, 26 Mar 2011 06:55:46 GMT

What did the flipper pay for the house? It's very odd that the sale info hasn't shown up on redfin.