Home Buying in Oceanport>Question Details

Gail Oliver, Home Buyer in 07302

I should have said I offered the asking price on a short sale with as is terms and we have gone through months of waiting for the bank to approve.

Asked by Gail Oliver, 07302 Wed Jul 14, 2010

They came back asking for above the appraisal price saying it is fair market value. There were liens on this property which I agreed to pay up to a certain amount. My attorney is finding out if these have been taken care of. The place is not livable and has to be completely updated. Also the central air, not working, needs to be replaced as well as all the flooring. I feel the asking price is more then fair market value.

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3
Gail,

OMG, short sales are so unpredictable as it honestly depnds on the bank. I've closed on a short sale in 2 months wherein I was able to obtain $470 out of the $500k owed, with lack of consideration for this missed payments , , , then I've endured short sales where I acquired an offer price that is now grater than the current post foreclosure list price because the bank insisted on a greater price. . . go figure.

Unfortunatley, despite what the "short sale" quick course Agents may tell you, there is no rhyme or reason as to what these banks decide to do and FEW AGENTS have the expertise or power over the bank's deciiosn . . . although many proclaim after taing a short course on short sales they are "experts".

With short sales, none of us are "experts", as the banks are unpredictable . . .. and this feedback comes from Agents I know that have been in the busines of short sales long befiore the current market.

Unfortunatley. livable v. non liveable vs. no central air really doesn't matter to banks as it does to the typical sale wher we can use that as leverage.

Unless a short sale has been "preapproved" Iin my view it is rearly worth the effort. , athough there are exceptions and your local agent with true kowledge of the short sale process will be most able to advise u of same.

Love and Peace,
Francesca Patrizio, ePro, SRES
Coldsell Banker
Francesca@PatrizoRE.com
732.606.2931
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Fri Jul 16, 2010
I am a selling agent on a short sale property and I am going through the same situation. What I am finding out is that the banks are basing thier "value" on an appraisal or BPO done by someone who many time is not even going to the property to look at it. Comps are being pulled from the MLS that are "regular" sales with no damage and they are being used to price the short sale properties that are usually in disrepair and amny times they are completely trashed.
What really gets my goat is that after the home goes to foreclosure slae, it gets put back on the market for less than the contract offers were that I had on it!!! I have a feeling there is something going on behind the scenes at the banks that makes their actions make sense. One investor I was working with told me that the banks keep the prices high on the short sales so the numbers on paper look good for their investors and so the stocks at the bank stay high. See what I mean? It makes no sense on our end, but there is something rotten going on behind closed doors, and unfortunately the home sellers are the ones that lose because they then get a "foreclosure" on their record! The banks don't care if they lose money on a deal in the end because the government gives them a bailout. I have a feeling that someday a book will come out explaining what the banks were doing to the real estate market to cash in the most money for themselves.

I don't know if this helps you or not, but maybe just knowing that "it's a lot bigger than you know" and "we are all wondering why the banks are doing what they're doing" will make you feel not so alone.
0 votes Thank Flag Link Wed Jul 14, 2010
What is your agent suggesting--and did you review recently sold similar properties in the immediate area--if so what did the data suggest as to a fair offer--was the property listed on target for today's market or slightly below, I wonder--keep in mind if you agree to pay above the appraisal price, you may be overpaying--your agent and or attorney are your best source of advice.
0 votes Thank Flag Link Wed Jul 14, 2010
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