Home Buying in Irvine>Question Details

Julia, Home Buyer in Irvine, CA

I guess when you wait a long time for a short sale approval from the banks you never know?

Asked by Julia, Irvine, CA Tue Jan 29, 2013

I have an accepted offer by the owner of a shortsale , but now after 5 months the bank has come up with a higher appraisal. I lost my opportunity on there homes
and I feel that its so unfair, is there any thing I can do now?

Help the community by answering this question:

Answers

13
Short sales is always a box full of surprises. While no two transaction are exactly alike, they all can take up to nine months and is a probability that the buyer can not ended up buying the property as a result of problems arriving at the last minute.

Best of Luck,

Maria Cipollone

Century 21 Tenace

http://www.Flahomespecialist.com
6 votes Thank Flag Link Wed Jan 30, 2013
What is unfair about it ? You made an offer which was accepted by the Seller - BUT - it was CONTINGENT on the Bank approving the amount of the loss they would accept. Short Sales are NOT "Fire Sales". Properties need to sell for Fair Market Value whether it's a short sale or a Standard Sale or a Bank Owned property - depending upon condition, etc.

Many people think, or have been told by someone, that short sales can be bought for UNDER market value. NOT TRUE.

And, now in OC with prices rising everyday, multiple offers on every property, appraisals are coming in higher because the comparable properties are selling at higher prices.

This will sound harsh - not meant to be but it's reality - Pay what the bank is asking or find another property you can afford.
2 votes Thank Flag Link Tue Jan 29, 2013
What is unfair abut it? what it was you ? the market went up during the last 4 months ..should buyers be punished for that because Banks are taking their sweet time to do anything. The price we agreed on 4 months ago was the market value!!!
Flag Wed Jan 30, 2013
You can counter offer and support your argument for a lower price by providing comps and if available an inspection report or contractors bids for anything that may be wrong with the property. If you have the property under contract, you are some what in the driver seat as having the option to purchase the property so I would see how low the bank is willing to go before walking on the deal. We are short sale specialists and do this often with favorable results. Good luck!

Will Miura
Assurance Properties
949-266-7895
wmiura@wminvestco.com
0 votes Thank Flag Link Mon May 13, 2013
Oh Julia,

I hate to hear this. I always urge my clients not to get too hung up on a short sale listing. There are just too many what if's.

I take my hat off to you for waiting so long.

The main problem with a short sale is the BANK, they hold the power. The seller can accept an offer but they have no control over the offer actually being approved by the bank.

Sadly, there is nothing you can do in this case ,but pay the higher price the bank came back with or move on t to another property.

I really wish you the best on this!!!

Kawain Payne, Realtor
0 votes Thank Flag Link Fri Mar 15, 2013
It is not short sale. It is long sale. I do not advise my clients to go through Short sale unless it is at the end of bank approval. There are plenty of properties that you can buy it immediately. Why to wait 6 months and you come out empty handed. Banks may appraise it more than you afford! You can not buy it. Short sale is good for cash investment that they are taking a chance. They buy 18 properties or 20 at the time. I am recommending to buy something now, before the price goes higher. Call me at 949-400-4677.
0 votes Thank Flag Link Wed Mar 6, 2013
Hello Julia;
I understand your situation. It happens and it can be solved. Do Not Give Up. I am not sure why do you say " I lost my opportunity"? Did they accept another offer? If not, ask your agent to do more research in comps. See if the bank appraisal price makes sense. If It does and you can still afford it, go for it. I am sure this house is something you like, otherwise you would not wait five months for it. The home prices are going up and lenders are trying to get as much as they can. I am sure with consulting with your agent who worked with you for a long time, you can own this home. If nothing, you are now a very experienced buyer=).
Best of Luck
Shadi Kian
Mortgage and Real Estate Broker
0 votes Thank Flag Link Thu Jan 31, 2013
You can always counter the bank and see what happens. Or if you do not want to waste time, you can accept it. Let's face it, it is a very low inventory market and it's hard to find anything so if you lose this opportunity, you are back to square one. If the house is worth the offer price from the bank, go for it and do not waste any time...
0 votes Thank Flag Link Wed Jan 30, 2013
Don't allow your deal to be over just yet, it may still be able to be saved.

the banks' "appraisal" value; First off that's questionable. Did the bank send out a REAL appraiser & did they do a full blown appraisal report OR did they just send out a BPO agent who was in & out of the house in about 5min ?

You have a lot of time invested in this deal so don't give up yet. You might consider ordering your own Private appraisal RIGHT NOW to contest the value the bank has apparently come up with.

I had to do this recently with Union Bank, they came back at one number stating "This is what we found the value to be", I told them "you're crazy, this is what it should be" & I gave them proof from a formal appraisal that I had the buyer pay for. Now I have them in agreement with me & everyone is happy & moving forward.

Shoot me an email directly if you'd like to talk about this further, I don't look back on this same Trulia thread for answers posted after mine.

Emily S. Knell
EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Realty ONE Group
Short Sale Specialist - 99.8% success rate
0 votes Thank Flag Link Wed Jan 30, 2013
Thom, excellant point. (TU)
Julia,
Your frustration and disappointment comes across loud and clear.
As real estate professionals, we hear words just like yours every week.
Even my own buyers express exactly the same words.
-
As the weeks passed, they forgot.
Even though they read and signed the Short Sale Disclosure (you did also) that detailed the process, which was accompanied by my familiar words. "Welcome to the Wild, Wild West of Real Estate, where there is an illusion of rules, but anything can and does happen. This is a Short Sale."
-
Short sales are not for everyone. 70% of short sale offers FAIL. Usually because the buyer actually does not believe what they have been told and what they have read. The truth is..."It's all true!"
-
The chronic and poor inventory of homes currently for sale have pushed many unwilling buyers into the short sale arena. I must assume this is also your situation. All the 'good' homes are short sales. So you make a grab at the ring.
-
Because there is no 'good faith partner' on the other side of the negotiations involving a short sale, it is imperative that you have the proper physiological and purchase strategy or you will take a beating. As the least significant element in the process, you will be the most neglected. There is no level of yelling, screaming, pestering, calling, messaging or stalking that will change this reality. If you have what it takes to compete in the short sale environment, you should continue. If you are impatient, expect logical reactions, need a lot of hand-holding, have a time limit or are 'in love' with the house, this is NOT the market you should consider.
-
So, you want to try again. Let the data direct your actions. Ignore the list price. Make a commitment to your real estate consultant, and together:
1. clarify your objectives,
2. define your strategy,
3. do the market analysis.
4. write a clean offer.
5. KEEP LOOKING

Wishing the the very best of success
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Wed Jan 30, 2013
The only thin that was unfair is you were not educated how short sales really work. Mant times a listing agent under prices a home to attarct offers. Everyone knows the bank will order an appraisal and will only approve the short sale within a certain percentage of what market values are. Shor stales shouldnot take 5 months any longer. Our good sales are getting answers in 30 days with teh average 60 days. When it takes longer than 3 months there is a problem, either no one is checking daikly on the short sale, the short sale package is not complete or the bank is waiting for something they need that no one is getting.
0 votes Thank Flag Link Wed Jan 30, 2013
Your agent can contest the appraisal if it's incorrect.
If not, you're going to have to accept the fact that this was not meant to be and move on.
0 votes Thank Flag Link Wed Jan 30, 2013
Your agent obviously didn't educate you on short sales. I explain to my buyers up front how short sales work. You have an acceptance by the seller, but all short sales are contingent upon lender approval - it's the bank who's losing the money. I explain that it is often after even 4-6 months that the bank comes back with a counter offer at a higher price so be prepared. How did you miss out on other homes? You obviously knew about them, so you could have written an offer on them if you wanted and then back out of this deal because you can't open escrow until you have lender approval. I also explain to my buyers that there are no guarantees with short sales and they can be risky. While you are waiting for the lender to approve the short sale, the bank is also moving full steam ahead with the foreclosure process. Some buyers spend money on home inspection, etc only to find out the bank foreclosed on the property before they got the lender approval. It's a risk buyers are taking to find a wholesale deal on property. I have many buyers who don't think the risk is worth it. However, if you have patience and are in no hurry to buy, you can also get a good deal. As Thom says, inventory is down and prices are going up, so an initial appraisal or broker BPO done 4-6 months ago could be quite different today.
0 votes Thank Flag Link Tue Jan 29, 2013
Sorry Julia, I never let my clients sit on the fance and wait for nothing. Please don't give up keep looking ...you will find a good property...
0 votes Thank Flag Link Tue Jan 29, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer