Home Buying in 34212>Question Details

Sevef, Home Buyer in 34212

can i buy a short sale direct from the bank? the owner of the home has a power of attorney that will not submit our offer without a $2500 fee to him!

Asked by Sevef, 34212 Wed Feb 8, 2012

Current owner ows $1 million. Short sale offer is $500k but selling and listing agent say that should work. Owners moved out of state and have hired an attorney to do all their dirty work,. he is a crook scumbag that wants to charge us $2500 to submit the offer when we know damn well the sellers pay that or he can get paid direct from the bank. How can we eliminate this person from the equation and purchase the home direct from bank on a short sale. thanks

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5
There are many a slip between the cup and the lip, more so in a short sale!!

A short sale approval will require FULL cooperation of the seller, they have to prove to the bank that they can't repay, and it is an involved process.

If at any point the ball is dropped, even months into it, the deal will die.

The short sale buyer must have patient endurance, and the seller must be willing for the financial investigation by the bank, and some fees are going to have to be paid, but they don't have to be paid up front.

A year or so from now it may be available directly from the bank when they finalize the foreclosure. Otherwise, your option is to work with the seller at this time.

Your agent should be able to guide you. There are many experienced people working short sales now, unlike a few years ago.
Good luck!

Jim Sweat
941-306-7384
team@jimsweat.com
Web Reference: http://www.ExplainShort
1 vote Thank Flag Link Wed Feb 8, 2012
Daniel is correct. Your first hurdle is to get the seller to "try" your offer to get approved by the bank. Until the seller signs your offer, you cannot buy it until/if it goes to sell at the courthouse foreclosure auction. Then if the lender decides he may accept less than the final judgement amount to ALL CASH buyers at auction. Or, I'm seeing lenders now keeping their properties or even enticing owners to do a Deed In Lieu and pay them $3k cash rather than do a Short Sale.

So, if you truly want that house, you are at the mercy of the Seller and his attorney. I wouldn't suggest paying any money "upfront" but you may have to agree to the $2500 fee at closing. I've seen short sales requiring $10k so count yourself lucky!

Lastly don't think you'll get a bargain price. If the house is worth $600k, you will not likely be able to buy it for $500k. $550k... maybe.

The list price is "ficticious" until/if both the Seller and the price have been vetted.

Good luck!
Alma
Alma Rose Kee PA
Future Home Realty
813.244.9898
http://www.SoldOnTampa.com
1 vote Thank Flag Link Wed Feb 8, 2012
nope, because the bank does not own the house!

The bank owns the mortgage, and the short sale is where the bank will allow the home to be sold for less than is owed.
1 vote Thank Flag Link Wed Feb 8, 2012
I think you will find that the bank woyd have a serious issue with the seller making money on the sale, since its prohibited. Unless you were to buy the applinaces for $2500 and submit an offer $2500 lower to the bank.

You need the seller to sign a purchase contract as the nbank doesnt own the house.

Report him to the bar and the bank, then find another house.

Good Luck


Kevin
0 votes Thank Flag Link Wed Feb 8, 2012
Oh, also they are doing some "loan modifications" nowadays so it's possible the owner will simply decide to keep it now.

So try your bargain priced offer but you MUST continue looking up until the day you get a counteroffer or final approval. It may be in a week or could take 6 months from now...

You'll also need to plan for mold remediation if the house is empty during the humid summer months. Also I see sellers putting in a tenant with destructive pets "after" they get a contract so plan on the condition being significantly different from today by the time you eventually get approval to sell.

Oh and there is also a Deed for Lease program where owner can remain in the property as a "tenant" and pay rent.

Good luck!
Alma
http://www.SoldOnTampa.com
0 votes Thank Flag Link Wed Feb 8, 2012
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