Home Buying in 92545>Question Details

faydavis, Home Buyer in Hemet, CA

Are we still safe in this game of short sale property buying?

Asked by faydavis, Hemet, CA Mon Aug 19, 2013

We made an offer on a short sale property back in February. The seller accepted our offer and then after like three month, one of the lenders of the seller ( They have two lenders and one of them accepted our offer.) counter offered for more and we accepted the counter offer. And then things seem to have stopped there. Almost three months has passed and nothing new has come. Our agent has not really contacted us much and just told us to wait patiently. Since we have been waiting for so long, we may just as well keep waiting as told. Even though our agent said chances of us getting the property is high, it's said there's no guarantee for any short sale. So, we can't feel released.

We'd like to hear advice from some other professionals. Do we still stand a good chance of getting the property? Would the lender come back and ask for a higher price?

Thank you.

Frustrating buyer

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Answers

10
Remember...."In the beginning..." when your agent advised you against purchasing a short sale. Remember the words that discribed the frustration, the abuse, the neglect, the complete lack of desire to keep a buyer informed and the wait and wait and wait and never any assurance.
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Well, it was TRUE.
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Here is the stats. Only 75% of first offers on a short sale close. Why? Becuase they were made by buyers like you who 'Didn't believe" and developed happy feet.
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The good news is, when you bolt, the second buyer, who is hoping you do something silly, will swoop in and grab the house and have invested 1/5 the time you have invested.
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Hey, if you do develop a case of 'happy feet' and need to start looking again..that's OK. You have served an important prupose already. You must do what's best for yourself and those important to you.
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In a short sale, there are NO gaurantees, not even a good chance. There is always the unspoken, "What were you thinking after everything you were told!"
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Be aware, in these highly complex short sale transactions, YOU are the only one who is offering any $$$$. Be prepared to suppliement your offer in other ways, to get this deal done. The abuse is not over yet. your agent can adise what can happen based on the lenders involved, the service company, the investment group, the PMI company, the attorney, association and current owner's tax liability situation. Other than that. looks like smooth sailing ahead.
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There is no way to offer any assurance. I had a short sale that posseses an ember of hope for over five years..and crashed and burned even though the buyer openly stated they were willing and able to contribute more! These short sales and the parties involved, DEFY logic. The house remains vacant and is a physical resemblence of an overgrown cave in the Amazon. FIVE YEARS.
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Badgering the listing agent, the negotiator or asserting your great distress will not alter the outcome one iota. You will need to wait. Occaisionally, check the pulse of the othere players (agents) to make sure they are still in the real estate business, and when something happens you will be the 13th to know.

Best of success,
Annette Lawrencee, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
Serious people call.
Serious people require reliable, accurate data

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1 vote Thank Flag Link Tue Aug 20, 2013
I bought from a short sale last year. It's possible, you just need to have patience and be ready to negotiate. In our case, we had 2 lenders and the second lender countered offer (the first lender accepted but left too little money on the table for the second lender). We ended up working with the selling agent/buying agent to split the cost to make the deal work.

In retrospect, I am happy with the purchase using short sale (we got a great price), but I would advise against short sale with 2 or more lenders, unless you are not in a hurry and really love the house! Hope this helps!
0 votes Thank Flag Link Thu Sep 26, 2013
Well if you have a bad agent who just beep boops around, then I can see your deal is actually going nowhere fast... any agent that tells you to just wait it out is just that, out.
Just some advise is to keep bugging, "the squeaky wheel always gets the grease".
0 votes Thank Flag Link Fri Sep 13, 2013
OPPS! Correction: 75% of initial short sale offers FAIL to close. Only 25% of initial short sale offers actually culminate in a sale to the original buyer.
0 votes Thank Flag Link Wed Aug 21, 2013
The fact is most short sales never close. That is because the borrowers need to qualify and the lenders have tough guidelines. Sellers often times try to push the issue by not making payments. But if you can pull of a shortsale you should get a bargain if not it is just not worth it.
0 votes Thank Flag Link Tue Aug 20, 2013
Dear Frustrated buyer,

Short Sales can be very frustrating! Ask your agent to get a weekly update for you from the listing agent. The listing agent should be checking with the negotiator on a weekly basis and be able to give you some idea of where your transaction stands.
We are able to follow up with each listing agent that we have submitted offers on, for our buyers. We have closed several short sales for our client buyers.
It is a possibility, that the lender could ask for a new BPO and the price increase, as the market prices are increasing. The longer it takes to obtain the Short Sale Approval Letter, the more likely the price will go up, until you get the Short Sale Approval Letter agreeing to the terms and price.
Hope this helps is some small way.


Don and Vicki Dysert
Authority Real Estate
Hemet, CA, 92543
License Numbers # 01727829 and 01727827
0 votes Thank Flag Link Mon Aug 19, 2013
Normally after you get a approval from the first bank you have hurry and get the 2nd, cause its almost always time sensetive. And the 2nd is faster most of the time. There are a few factors that can hold up a short sale, but without making a big list for you i suggest calling up the escrow co. and asking if they a approval letter from the first loan and if there is a close by date. I hope this helps a little.
0 votes Thank Flag Link Mon Aug 19, 2013
I will also guess that you wrote your offer directly with the listing agent,correct?


Jory Blake
951.742.3751
0 votes Thank Flag Link Mon Aug 19, 2013
Thank you Jory. And you were right. Does working with the listing agent make any difference?
Flag Mon Aug 19, 2013
Until you have the written terms of lien-holders approval of short sale terms, my advice is to keep looking.Some of my fellow Realtors may disagree, but I am comfortable saying that until both lenders agree, you do not have a deal....especially when your dealing with a 2nd loan.


Jory Blake
Expert Real Estate Services
951.742.3751
Web Reference: http://www.JoryBlake.com
0 votes Thank Flag Link Mon Aug 19, 2013
Hi Frustrating Buyer,

Have your Realtor ask the Listing Agent for a status update. The Listing Agent can contact the Short Sale Negotiator (at the lender) for the status update. You should have some type of answer by now - especially if it's been 3 months since you accepted the second lender's counter offer. If they won't give you an answer, threaten to cancel contract.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon Aug 19, 2013
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