Foreclosure in Austin>Question Details

Jnelson84, Home Buyer in Georgetown, TX

I am interested in a foreclosed home that will be on home path soon. I talked to the listing agent and she did the BPO for the home.. but...

Asked by Jnelson84, Georgetown, TX Mon Aug 20, 2012

I am interested in a foreclosed home that will be on home path soon. I talked to the listing agent and she did the BPO for the home, but Fannie never came back with a price to list the home. It was listed as coming soon, then was removed. Month or so later, she was asked to give another BPO and that was two weeks ago. The home has been placed back on Homepath, as coming soon.

Has anyone ever seen this happen? She thinks maybe Fannie Mae is wanting more for the home than what she suggested in the BP. House needs major work that they are not planning on repairing.

Thanks.

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6
Clint Frerich’s answer
This sounds like a short/sale situation to me. Unfortunately the Banks are extremely slow in regards to short sales and foreclosures. I just closed one for myself with BOA that sounded similiar.. As I was signing the paperwork the title company told me to stop and leave the title company with no explanation. Later that day the title company told me the bank never had the home listed for sale to begin with? So I continued to wait and the Listing agent had me sign amendments to extend closing, etc etc.. One week later I closed because they made a mistake? Point here is, the banks are very,very unorganized! Another reason, if this is a foreclosure the bank doesnt want too make a mistake on the actual filing of the paperwork and they are simply just dotting I's and crossing T's. Most if not all banks are getting hit with lawsuits left and right for incorrectly filing their foreclosure documents. Honestly there are thousands of reasons the banks do crazy things, that nobody understands. This year they are expected to release more foreclosures than the first quarter of 2011.
Point being: If you are looking to buy a foreclosure you need a Broker who knows what they are doing and not just posting on this site to get leads. You will also need a lot of patience. If you want a good deal in this Austin market, you will have to be really patient.. One last thing from an expierenced Investor/Broker.. If you are not paying with cash, you may have a hard time being approved for a home that is in bad condition. Most, if not all Mortgage Banks require the home to have the flooring at 75% completetion or the underwriter will see the appraisal and reject your Mortgage approval at the last minute. Then you have just wasted your time and money. Same goes with the rest of the home. If your Lender thinks the house is falling apart or is in fair condition, they will not loan you the money, bc the home is their collateral.. Best of Luck

Call if you want some more reasons:)
Clint
512 799 6623
1 vote Thank Flag Link Thu Aug 30, 2012
Dear Jnelson84,
It sounds like you don't have a Buyers Agent to help you with this purchase, since your posting in this forum. I strongly suggest you have your own Buyers Agent to help you with this purchase. The listing Agent works for the seller only. In this case its the bank, which means its their job to get as much money as possible for the bank. Your buyers agent will help you to get the best possible price. One way they will do this is to give you comparables of recently sold similar homes in that neighborhood. This way you can compare the price per square foot to see if it is priced right. Sometimes banks list homes for a reasonable price per square foot and sometimes they are seriously overpriced. Your Buyers Agent will help you to know the difference. This will help you to pay the right price and not the "sticker-price". I wish you luck and would be happy to assist you if you don't already have a Buyers Agent.

Sincerely,
Betina

Betina Foreman, Realtor-C.N.E.
Austin Home Girls Realty
512.771.6318
1 vote Thank Flag Link Tue Aug 21, 2012
J Nelson, Michael made a good point that if you do not have a buyer's agent yet, you should get one to set you up with an automated website to alert you immediately when this property does come on the market. If you're not yet working with a Realtor, please contact me and I'd be happy to discuss working with you regarding this property, or any others that I might know of that might fit your criteria that might be available sooner at a better deal even. I have a great team of lenders as well to get you preapproved before the property is available, as that will be a condition of the offer most likely. The preapproval process is free, as is my experience and expertise in representing you. Again, if you're not yet working with a Realtor, please get in touch with me and I will do all I can to assist you!
Joe Jarusinsky, REALTOR, Keller Williams Realty, Ranked #1 by Buyers and Sellers!! (JD Power and Associates 2012), 512-261-4415
1 vote Thank Flag Link Tue Aug 21, 2012
Welcome to the world of foreclosures owned by government sponsored entities. Do not make the mistake of thinking these entities care about moving the toxic assets from their books...they don't because they receive your tax dollars to sustain an obviously unsustainable business plan.

There is no way to hurry one of them so sit back and enjoy the ride. The home will come on the market when FNMA decides it's time and it doesn't appear they've reached that point just yet.
1 vote Thank Flag Link Tue Aug 21, 2012
Yes, I'm beginning to see that!! I't will just give me more time to save some extra cash for the repairs that I know that need to be done to the house. Roller coaster ride here we go!

Thank you for your advice.
Flag Tue Aug 21, 2012
If they disagree with the BPO valuation they might order a second BPO. And if the 2nd BPO is wildly different than the 1st, they would ask the agents that did the BPO's to justify their work.

If there were title issues it is doubtful they would've requested the 2nd BPO. And if there was a sufficient time between BPO 1 and 2 (30 or more days) they would request a 2nd BPO prior to listing. So it sounds like it will be hitting the market soon.

Is the listing agent aware of your interest in the property? And are you working with a buyers agent? In most MLS systems an agent can set up an auto email for a specific property which will notify them (and their buyer) when a property hits MLS. They can receive an email in as little as a couple of hours of the home hitting MLS.
1 vote Thank Flag Link Mon Aug 20, 2012
Hi Michael,

Thank you for the quick reply.

Yes.. I'm actually working with the listing agent who will let me know as soon as the house hits the MLS. She tells me she has never seen them take this long.. She gave the second BPO about a week or two ago.

Thank you for your insight into the Fannie Mae process.
Flag Mon Aug 20, 2012
You just have to wait.....sometimes they come out quick...sometimes they take a year or two.

Sounds like it is getting close, but you never know. Sometimes there are title issues, or other issues and the listing agent will likely never know this until FM says they're ready.

Since it is a government entity or quasi government, they have to follow their rules about listings and offers, so unfortunately you can't try to snag it before it comes on the market.
0 votes Thank Flag Link Tue Aug 21, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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