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Real Estate Short Sale Questions and Answers |
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Question: why do banks take a long time to see if they accept your short sale offer?
I made an offer on a house that is a short sale on last Thursday. It was priced for 175000 and we offered 170000. I still am waiting to see if they accepted my offer. I am willing to give the full price if that will speed the process up. My realtor said it is a good offer and it is being reviewed. I do not want to keep bugging my realtor and asking if she has heard anything from the bank. I want to know why is it that the bank takes long to see if they accept your offer. Is their a procedure with short sale homes? This would be my first home and I really like it. Tire of paying rent. Property is in Illinois if that makes any difference.
I just called the record of deeds and they said it is actully in forclosure. Soes that make a difference?Answer: They are slow with everything like that, except, of course, ...
They are slow with everything like that, except, of course, a foreclosure. I was told I'd have loan modification paperwork within 7-10 days - and that was 3 weeks ago.Answer: I'm not sure. I'd guess that taking a loss on a ...
I'm not sure. I'd guess that taking a loss on a property requires a pretty senior person to approve the deal, and that person simply is unavailable to approve your transactionAnswer: Maybe it has to be reviewed by several people. Maybe the ...
Maybe it has to be reviewed by several people. Maybe the person who can give the ultimately ok is on vacation or out of the office. Maybe the real estate department is backlogged with a ton of work.
It?s normally a slow process when working with a bank.Answer: The banks have to go up there chain of command often to get ...
The banks have to go up there chain of command often to get an answer on these issues when they are letting assets go for less then what they lent on them. I know the banks have a bureaucracy much like government large and cumbersome.
Imagine you business model if you are a banker you often spend much more effort in the area of making new loans and gathering new good cash flowing business rather then making time to clean up the mess that was made 2 to 5 years ago.
In addition some banks are less equipt to deal with negative assets on there balance sheet then others. This coupled with the fact we are seeing record foreclosures may make it a numbers game too. Some banks today just cannot keep up with the bad mortgages in there portfolio.
Just be patient and be firm on price there is no rhyme nor reason to there decision making. Often and some times if they have to get rid of something because of annual reporting you may see property discounted over 50% after its finally sold.
The banks want to return to normal to do more business and get profitable but they also have people within the organization that may have made the bad loans and the politics are such make an impact on how the bad loans are managed. You will see this a lot in smaller banks.
Good luck and happy hunting this low market is a great time to get a good deal. its a buyers market be firm and don't let a banker out negotiate you its his bad loan not your make your self a grand deal. Its great to make low ball offer to big bad bankers. Remember its never to late to renegotiate, up until you close you have that ability. I like such contingencies as inspection before closing and ect.Answer: Short sales typically mean the bank is selling for less than ...
Short sales typically mean the bank is selling for less than is owed by the current owner. They may be waiting to see if a better offer comes in.Answer: A Short Sale is not a quick process. Basically the bank is ...
A Short Sale is not a quick process. Basically the bank is accepting less money for the house than is owed on it. If the proper procedure was followed the bank agreed to accept $175,000 for the house as a negotiation between the lender and the current owner.
You made an offer below their price. They have a process to follow and people will need to sign off on the deal.
Remember, that a bank is in this to make money, not lose money. Some of the things they look at in a short sale situation is if it will be cheaper to do the short sale or foreclose. If they think they can foreclose then turn around and sell the house and make more then your offer they will just foreclose.
They will also look to see if there are other offers on the property. Remember, it costs the bank nothing at this point to take their time in making the decision. The current owner is still on the hook for payments.
My question to you is if you felt that the house was worth $175,000, as you stated you would have paid that, why did you try to lowball the offer? If it was just to see if they would budge then you have to wait to see if they will budge. If you wanted the house quick you should have made the full price offer.Answer: The real reason is that our banking system is not really ...
The real reason is that our banking system is not really prepared for all that is going on. As for whether or not they accept your offer, probably depends on the mood of the person who reviews it.Answer: Now you know why you do NOT buy a bank owned property. They ...
Now you know why you do NOT buy a bank owned property. They take forever to make a decision. Make your offer good for 48 hours. If no answer by them, move on to another house.Answer: Banks always take their time on such short sale offers. ...
Banks always take their time on such short sale offers. Right now, they are investigating to see if they think they might come out better by allowing the house to go to foreclosure. With lenders, it's always bottom dollar which counts. As well, they may be waiting to see if any other offers are tendered which are better than yours is.
I've seen short sale offers drag on for a month.Answer: The reason it takes so long is that the mortgage company ...
The reason it takes so long is that the mortgage company actually has to get approval from the investors that initially lent the money for the loan. Most of the time the investors are in different parts of the country and it takes a while for them to get in touch with them and get approval. Ofcourse not to mention the fact that the deal can't be assigned to a work out negotiator until a contract is submitted and then they have to tell the seller what items theya re missing in order to process the short sale request... The entire approval will take about a month for you to hear back.Question: my lender is not accepting my offer in short sale?
what I shuold do to do short sale of my home where as bank is not accepting offer. what I the last resort.Answer: IF the bank isn't accepting the short sale then the bank ...
IF the bank isn't accepting the short sale then the bank must think the house will bring more if they foreclose and sell it themselves. You need a better offer, or you will be foreclosed on ... or ask if you can relinquish the "deed in lieu of foreclosure" and they agree not to come after you.
Good luck.Answer: Try to raise your offer.
Unfortunately, you bank ...
Try to raise your offer.
Unfortunately, you bank doesn't have to accept your offer.
The bank is only watching out for it's best interests.
Good luck.Answer: Are you short selling the house yourself or another person ...
Are you short selling the house yourself or another person trying to buy your house doing a short sell? Because if you are trying to do your own short sell the lien holder is not going to accept it. What was is your short sell package that you sent the bank?Question: My husband and I put an offer in on a Short Sale property, but the seller took out all types of things after?
The seller's agent promised and negotiated that all appliances, light fixtures and bathroom fixtures would stay in the property because the seller was threatening to take all types of stuff it if we didnt pay on the side or something my agent said she wl not do cause it is unethical since it's on MLS. My agent wrote up the offer & put everything comes w/ the unit & checked off everything listed. So the stove, all appliances etc and everything that we saw when we viewed the unit twice & the same stuff is listed on MLS. We put the offer in Saturday to the bank, but the agent called my agent today & said that against her agreement with the woman & the offer she has taken a ton of things that was listed in the offer. We have not put down em yet & we assume we can ask for a credit for evrything that she took...unbelievable?! My agent says we are not bound to a contract yet & they will go after her. She took appliances, light fixtures, all types of stuff on the MLS and offer?!
I am asking about an Offer and not a Contract. We are waiting to see if the bank will take the offer. So I know we are not bound because there is no contract, but just and offer that is under review, but since the offer was submitted the woman took this stuff...so the bank does not even know and she did it after the offer was sent in despite the things we discussed and put on the offer.Answer: honey if you are having this kind of problems and it is just ...
honey if you are having this kind of problems and it is just the beging I would walk away and look for other properties. get pre approve for the amount that ya'll ca nafford and llok for homes in that price range there are tons on the market so the choice is yours for the taking and don't settle on less which you are doing here.Answer: Easy-peasy. The seller has changed the terms of the sale, so ...
Easy-peasy. The seller has changed the terms of the sale, so simply adjust your offer. Take it or leave it.Answer: Stop the offer now. The offer is fraud to the bank until ...
Stop the offer now. The offer is fraud to the bank until all the things that they took are removed from the offer. This is between the bank & the seller & she will be in trouble with them but you don't want in that. You need to completely re-write the offer without all the stuff she took- & offer less.Answer: If the seller did not go by the terms of the contract, then ...
If the seller did not go by the terms of the contract, then there is no contract. Your agent was prudent enough to specify in the offer that all fixtures/ appliances must stay, so you are not obligated to pursue the contract. If you decide to fight through it, then yes, you can sue for specific performance. In this type of market, I would just say"forget you, seller" and move to another property. This seller is in a dilemna anyway, as they are in a short sale and probably are risking foreclosure.Answer: Ok, your agent didn't do a very good job explaining to ...
Ok, your agent didn't do a very good job explaining to you how things work.
Anything that is hard-wired to the home or permanently attached, is considered part of the home and doesn't even require it to be contracted separately in the MLS or in the real estate contract.
The only exceptions are Stoves and Refrigerators b/c these are free standing and are personal property....however, if it was included in the contract (b/c the MLS is not guaranted to be accurate), then I wouldn't even go so far as to ask for credit, I would ask for REPLACEMENT of the items or no deal.
If you can reach an agreement, do a walk-through the morning of closing to make sure everything is still there.
Stay away from transactions that get this complicated/dramatic...there are too many houses on the market for buyer's to have to fight these battles.Answer: appliances are not real estate - the seller doesn't have ...
appliances are not real estate - the seller doesn't have to leave themAnswer: I would walk away. Unless this is your dream house it ...
I would walk away. Unless this is your dream house it isn't worth the effort.
Things that are attached to the house should be left by the seller--and any appliances listed in the MLS should stay too - their value amount is built into the asking price. The bank has a mortgage amount and that is what they need to recover - they don't really care if the seller took stuff she shouldn't have - and they won't show an adjustment on their price(inopinion).
Obviously the seller is ticked because she lost her house to the bank - she may have done other damage to the house that you haven't found yet...broke the hot water heater, backed up the plumbing, disabled the garage door opener, put acid down the pipes, rewired the electricity, rubbed rat poison in the kitchen cabinets or buried poison in the yard for your pets to dig up and eat....I could go on and on.
The best advice you will ever get is "Walk Away" from this one. Have your agent show you some more properties. This one is in distress!
Good luck.Answer: move on
move onQuestion: Buyer Misled into a Short Sale by a Seller - Thoughts?
My wife and I haggled for several weeks with the seller. Finally our offer was accepted. A few days later my bank contacted me and said the seller was upside down on the mortgage and could not come up with the difference between our offer and the amount he/she still owes (like 20K) on the mortgage. I am now being held hostage by the contract as the seller tries to convince his bank to take my offer and forgive the difference. Is it not illegal or something for him to disclose this after accepting our offer? We have like 800 bucks in non-refundable home inspections and such. I am freakin' smoked!
They have a realtor and I have a realtor. No one disclosed a short sale. Supposedly the seller did not realize they could not get the money until after the offer was accepted.Answer: If your offer and acceptance is in a contract... and it ...
If your offer and acceptance is in a contract... and it should be... then you clearly have a legal claim on the seller. His acceptance requires that he disclose factors which might preclude the sale.
The question now becomes,do you want to pursue it legally? There may be nothing to get.Answer: A lot of buyers are in default and try to sell the property ...
A lot of buyers are in default and try to sell the property before the bank takes it away as foreclosure..so right before that they try to sell it for what they owe as a short sale. The bank will accept that offer HONESTLY 20,000$ is nothing for a short sale, I am 100% sure they will accept it. GOOD LUCK!Answer: didn't you get a real estate agent to work with you? ...
didn't you get a real estate agent to work with you? they would have have suggested including contingencies everywhere on the offer sheet to protect you. That's the buyer's responsibility to be careful and check out all those thingsAnswer: You did not know it was a short sale?
Your agent should ...
You did not know it was a short sale?
Your agent should have made this clear, that the seller really can't sell you the house unless his bank agrees to it.
You can hold your agent liable, but not the seller. As long as they told their agent it was not their job to make sure you knew it was a short sale.Answer: If the seller did not disclose that his lender had to accept ...
If the seller did not disclose that his lender had to accept the terms of the contract, then he signed a contract to sell his house to you for a certain amount. He needs to go to his savings account and withdraw $20,000 so he can close.
It's not the buyer's agent's responsibility to know how much the seller owes on a house. It is between the seller and his Realtor to figure out a net sheet when they got your offer and determine if the seller would make money, need to bring money, or if they'd have to ask the seller's lender.
If they don't close now, then you have a legitimate claim against the seller, and the listing agent if the listing agent knew and did not disclose.
Minimally, they need to give you back your earnest money and all funds spent on this house - appraisal, inspections, etc. Your Realtor may also have a claim to the listing company for a commission.
BTW - What percentage of the price is $20,000? If it's a $500,000 house, the bank will accept it. If it's a $80,000 house then they will not.Answer: You cannot hold your Realtor liable if they didn't know ...
You cannot hold your Realtor liable if they didn't know about the short sale. Some sellers don't disclose this even to their own Realtor! It's not illegal not to disclose the short sale, the owner still owns the house and they need bank approval for the short sale.
Does your contract have time is of the essence clauses you can exercise?
If the sale falls through because the bank won't approve the short sale, take the seller to small claims for the money you are out due to their tactics.Answer: Unless the fact this was a short sale that needed to be ...
Unless the fact this was a short sale that needed to be approved by the bank was posted in the MLS, your Realtor has no real way of knowing. If the sellers Realtor knew, they should have disclosed this to your agent.
The Realtor board I belong to just made a change to allow flagging a property as a short sale that needs lender approval just to prevent this.
This may vary by state, and you should check with a your attorney, but I believe if bank approval is required, even though you have an agreement between the buyer and seller, you do not have an executed contract.
The listing agent did not do their job, but making a claim for your inspection costs would be pretty hard to do.
Again, talk to your attorney about this since it is now a contract issue.Question: during short sale or foreclose can I still live in the house?
I having a hard time so I cant affort the payment of my house, I undecide what to do, either foreclose or short sale, but I wonder if during any of this process can I stay living in the houseAnswer: Foreclosure can be a long process for the bank. There's ...
Foreclosure can be a long process for the bank. There's paperwork to write up and file, appraisals and title work to do. Also, after filing the Lis Pendens(public notice of intent to foreclose) with the county, the property will have to be sold at a Sheriff's Sale. You will be served a Notice to Vacate when the bank is ready for you to move out. Thus far, inexperience, people are given 30 day notice to vacate.Answer: Yes you can.
If you decide to do a short-sale (I work ...
Yes you can.
If you decide to do a short-sale (I work on them all of the time), then you can stay until the date you and the party who is purchasing agree to. Most investors or buyers are not going to close the deal until you are out.
Some investors will let you stay in the house after the short-sale as either tenant or buyer. Of course, you will have to pay. Most investors don't like this arrangement unless you have proof that you can afford to live in it.
If you go to foreclosure, you will be able to stay until the time your local state law allows. Often this is some time after the sale takes place. Foreclosures are very bad on your credit will stay on your credit history for 10 years), and it can cause a lot of problems with other consumer credit you have. Expect to pay more for anything you buy on credit from here on out.
The short-sale allows for some reasonable way out that can work for the investor, the bank and you.
Whatever you do.. if you want to work this out with the bank.. do not abandon the home. It is at that time, they are unable to work with you.Answer: Kudos to the Padbuyer. He gave you some great information on ...
Kudos to the Padbuyer. He gave you some great information on staying in your home and short sales. I'm not sure the reason you cannot afford your payment anymore but if it is due to a hardship that you will be getting out of or due to an adjustable rate mortgage you should consider a workout plan with your lender. Visit www.homeownersavoidforeclosure.com to found our more information on keeping your home otherwise find a local investor or realtor that specializes in short sales. Most of all keep your head up, their are many alternatives to foreclosure!
Sean P |
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Bank Foreclosure
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