Nikki Hall, Home Buyer in Canal Winchester, OH

ADVICE NEEDED Home in Canal Winchester, OH, The home was on a SHORT SALE. It is 110 years old (4 bdrm, 1.5 bath)

Asked by Nikki Hall, Canal Winchester, OH Thu Nov 4, 2010

Some info:
The house was for sale (on a short sale) for $129,900
It was purchased 1 year ago for $160,000
The house was appraised at $140,000.
Here is the deal:
Our offer to the seller $125,000 them paying closing costs
Her Counter offer: Accepted but she will only pay 1% of closing costs
Our Counter offer: $122,000 We pay closing costs she pays 1% closing costs
Her offer: Accepted $122,000 we pay cc she pays 1% cc
THEN....We had to wait for the bank to accept it.
THEN...After a week the bank denied our offer and the woman that was selling it turned the title over to the bank.
NOW...The house is now being foreclosed on.
The signs are taken down and the house is no loner on line.
What should we do?? We really really really want this house, should we wait till it goes back up for sale then offer the same amount as we did before...We cant go any higher.
We need advice, and would REALLY appreciate any advice! Thank you so much!
P.S. We are not in any hurry to move in.

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Answers

9
There is nothing you can do until the house comes back out of foreclosure. And if the process is just starting, be prepared to wait....like 18 months. And that's assuming it's not affected by the stuff going on where banks are halting foreclosures in their tracks. Be advised that if/when it comes back on the market it could be listed for more or less than the initial short-sale amount. If the bank has to put money into it and thinks it worth more they will list it for more. FYI, your initial negotiations will have no effect on future negotiations. Honestly, Nikki, I suggest that you get a Realtor if you're trying to buy a foreclosed home or a short-sale. You are doing yourself a disservice if you go at it alone or use the listing Realtor. The seller in both cases will pay YOUR buyer's agent so you're throwing money away if you don't get your own representation. Not to mention how tricky short-sales and foreclosures are, as you can see.

Good luck.

Jim
1 vote Thank Flag Link Mon Nov 15, 2010
Nikki a deed in lieu of forclosure takes just a few weeks. The owner may have another 30 days or more in the home after that depending on what they worked out but 30 days seems to be the norm. After that the lender should have the property on the market at any time. Here is a reality check depending on the lender the list price SHOULD be higher than what they turned down but may not be. Make sure you have your duck in a row and ready to go.
I had a short sale listed where the lender would not agree to go for less than 72,000.00 net. After they had the deed in their name they listed it 34,000.00! so be ready.
1 vote Thank Flag Link Sun Nov 14, 2010
Nikki what you should have done is to find out how much the lender wanted to let the property go as a short sale and bought it. Hindsight is 20/20!
Normally, the owner, if they turn the deed over to their lender, something know as a "deed in lieu of forclosure" does not go through the forclosure process.
If forclosure has just started it may take 18 months or more for the property to come up on sheriff sale if your county is running like the ones in S.W. Ohio. After the lender excersises their judgement rights and reclaims the property by bidding up to the judgement amount at sheriff sale it may take a few more months before they put the home on the market.
I am glad you found a home you like and are willing to be patient because that, patience, is what is called for now.
You may also want to look at other properties because the one you like will not be in the same condition when it comes on the market as you last saw it.
1 vote Thank Flag Link Sun Nov 14, 2010
Hi Nikki, it's been awhile since you posted and I wanted to follow up with you. Did you end up in this home eventually?

740-777-8803
Betsy Sharp, Realtor w/ Coldwell Banker King Thompson
0 votes Thank Flag Link Sat Jul 28, 2012
Thank you so much to everyone for all of your great and healpful advice!!
Nikki
0 votes Thank Flag Link Mon Nov 15, 2010
FYI, giving the title (deed) to the bank doesn't guarantee that they will do a "deed in lieu of foreclosure." The bank doesn't have to agree to just take the deed back....it's a little more complicated than that.

"Nikki what you should have done is to find out how much the lender wanted to let the property go as a short sale and bought it."

Unfortunately, banks will not always tell you this and sometimes they don't even know. It may have never made it that far in the process. Also, the asking price on a short-sale may be close to what the agent thinks the bank wants or it may be way off. Many times the bank comes back and asks for a lot more money because the house is priced too low, in their opinion.
0 votes Thank Flag Link Mon Nov 15, 2010
James,
Thank you for your help.
It is a "deed in lieu of foreclosure", that is what the Realtor told us.
What do you mean it does not go through the foreclosure process? What kind of process would it go through?
We will have a lot more money in 18 months, so if It does take that long it would be okay, unless we find something we like more before that.
You are right, we should have. Although we only had a certain amount to spend and we wanted to try to negotiate with them. Doing what you said would have saved us time and worries though.
Thank you, Please respond at your earliest convenience.
-Nikki
0 votes Thank Flag Link Sun Nov 14, 2010
Cindy,
Thank you for your response. I don't know very much about buying homes, and barely know what your asking me. My husband and I decided to wait until It goes back on the market then put in the same offer as before.
Although If you have any advice on how much we should offer or any info that would help, we would greatly appreciate it.
Thank you so much!!
The address website is attached.
-Nikki
0 votes Thank Flag Link Sat Nov 13, 2010
You said that the home is being foreclosed on, do you know the date of the sheriffs auction and are you aware of the timeline of confirmation of sale ect? If you don't know this, I can look it up and explain it to you. Do you know if there was only one lien holder when the bank was negotiating the short sale or more than one. Basically, without more info or just the property address, I cannot give you my best guess on what I feel the home should sell for in today's current market condition. So, without any additional info, I would say to keep your eye open for this property, but continue to search for a property that might make you forget about that home.
0 votes Thank Flag Link Wed Nov 10, 2010
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