Home Buying in 14623>Question Details

Slamer45510, Home Buyer in 14623

I put in a short sale offer. The bank is talking about moving to foreclosure as the 2nd bank won't take the 1st banks offer. What happens to me?

Asked by Slamer45510, 14623 Tue Oct 26, 2010

What happens 2 my offer 4 the Short Sale? I understand it takes a long time, but can my offer be changed or reduced or increased or forgotten about if the short sale goes to foreclosure because the second bank won't accept the first banks offer?

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Are you in full contract with the seller or did you merely put in an offer. Most of the time today, the bank won't even consider an offer unless you go to full contract (and deposit your down payment). Then it goes for bank approval. From your posting, it doesn't seem like you got bank approval yet. If the bank turns down your offer, you can increase it, have it resubmitted and then see what happens. But, if the bank rejects your offer, you should get your down payment back. With two banks involved, it could really take a long time until they decide to play nice with each other. In any event, short sales are a pain in most instances. But, unfortunately, they are part of our new reality. Good luck!

Ralph Windschuh
Associate Broker
Certified Buyer Representative (CBR)
Senior Real Estate Specialist (SRES)
Century 21 Princeton Properties
Top 2% of Century 21 Agents Nationwide
0 votes Thank Flag Link Wed Oct 27, 2010
As my fellow agents inferred, a short sale offer is a long and arduous process with no guarantees. If the 1st Bank and 2nd are not in agreement you can almost count on nothing being resolved. If you are absolutely in love with the home you can wait till it gets re-listed as a Bank owned property but there is no guaranty that the pricing is going to be as attractive. The Bank will want to recover is investment plus carrying cost and real estate fee. If you are not in love and just want a good deal, you may want to keep looking for the next good deal or maybe your dream house. As in many ventures the road to gain, many times is long and painful.
0 votes Thank Flag Link Tue Oct 26, 2010
Your agent and or attorney can best advise as it relates to your situation--if the property does foreclose, the lender will become the owner, therefore, you can either wait for the property to be sold at auction, relisted on the market etc.; unfortunately short sales are never a guaranteed sale, much depends on the lender(s) and each is different. In NY the majority of foreclosures go through the court system, therefore they can take anywhere from six to eighteen months, depending on the court's schedule, facts about the case, etc., therefore hope for the best regarding the second lender in the transaction.
0 votes Thank Flag Link Tue Oct 26, 2010
In New York State the Forclosure process typically takes as long as a year and in in recent cases much longer because of the amount forclusres the banks are dealing with and the additional government regulation. You can attempt to stay in contact with the bank that will be forclosing in order to purchas ethe property as sson as the process is finished. Or, and maybe more prudently, move on and search for another property. Generally speaking our local here in Rochester is beginning to see and increase in inventory and an overall slowing of the market producing an envirnment in which a saavy home buyer can really find some great deals.

Unless the Short Sale deal you were involved in is simply so fantastic that it would be hard to beat I may suggest getting back out into the market and start hunting down the next great deal. In my 19 years as a full time agent I'm not a big fan of chasing down Short Sales because of circumstances you are experiences and others like it. It's often much more expeditious to either find a home that has already been forclosed upon, or more simply a great home that has been well maintained that has a very motivated seller. They're out there!

Harlan Furbush
Associate Broker
RE/MAX Relaty Group
0 votes Thank Flag Link Tue Oct 26, 2010
Once the home gets foreclosed upon, there is a new owner and your offer is no longer valid as it was addressed to the previous owner. You could always bid on the home at the foreclosure auction if you are in a financial position to do so. Eventually, if the first bank buys the house at auction, it will become available for sale again. George Dounce, Hunt ERA.
0 votes Thank Flag Link Tue Oct 26, 2010
It really depends on the bank. We have had an instance when a buyer of ours had a contract on a property that went from being a short sale to a foreclosure. We were lucky in that the Bank processed the foreclosure quickly and brought it back on the market so that our buyer was able to still purchase it. This is not always the case. The best thing would be if you can find out from the bank or asset management company if there is a specific agent they will be listing the property with and try to be one of the first notified when it comes back on the market.

Unfortunately it sounds like considerable time is going to be added to this transaction if you try to stick with this property as there are specific procedures that the bank needs to take for foreclosures, depending on where in the process they already are.
0 votes Thank Flag Link Tue Oct 26, 2010
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