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Donna, Other/Just Looking in 89448

I have been working with a realtor on a short sale since Oct 2007,we were told the seller and 1st bank had

Asked by Donna, 89448 Sat Jan 26, 2008

taken our off, we were waiting on the 2nd bank to agree, meantime we were told to signed all paper,got the loan, & Insurance instructed to do, hired a home inspection twice for plumbing,heating & electical, title company $5,000 which I am told we will get back, now the house had a better offer and no longer a short sale as they offerred closer to the original selling price.
Do we have any recourse for our expenses & time?

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Donna - your question is really one for a lawyer or attorney. Did you have a firm written commitment or signed agreement? My guess is that you probably did not. In many states, verbal agreements for the sale of real property are non-binding and would unlikely hold up in court. Because banks are losing money in a short sale arrangement, they will do everything within their power to mitigate risk and reduce their losses, just like most businesses would. I presume that your expenses at this point are basically limited to the cost of inspections. In the big scheme of things, it is a minimal investment to have made in the hope of getting a really great buy on a home. Best wishes for a better outcome with your next offer - Ted
Web Reference: http://MyGeorgiaHomes.com
1 vote Thank Flag Link Sat Jan 26, 2008
Vicki Masell…, Real Estate Pro in Duluth, GA
MVP'08
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As the others advise, check with a lawyer. It's unlikely (in my non-informed opinion) that you have any resource for the time you spent pursuing the short sale. I'm surprised that you were able to get a loan and insurance on the property before the contract was approved by all parties (meaning the lender(s)).

If you're still interested in the house, keep in mind that the higher offer may fall through.

Good luck.
1 vote Thank Flag Link Mon Jan 28, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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This is a question for an attorney, but if the second had not accepted the offer, I would guess no. If you don't want the home at the new price, you may have to move on.
1 vote Thank Flag Link Mon Jan 28, 2008
Hi,

I do short sales as well , what we basically do is if we know it is really a good deal and we know that the bank is going to agree , we take the risk and pay for all the inspections and stuff that has to be done in the property , but that doesn’t warranty that the bank is going to pay you, remember the bank is taking a lost in the property when you do a short sale and if at the end of the day the short sale doesn’t go well and they cannot close on the property the bank will not pay for those expenses.

That is my particular experience. Especially with second mortgages.

Good luck

aya
Web Reference: http://www.HugeEquity.com
1 vote Thank Flag Link Sun Jan 27, 2008
Potential correction- while it's a moot point, for general information getting clarification from an expert in short sales is critical for the next go-around. I just read something that indicates that if the first lienholder forecloses, it can negate the second (not requiring approval). Whether this is state by state is unknown to me, but as we all learn the process, better to have facts for your area specifically. What a sad situation to become familiar with, but it is what it is!
Web Reference: http://optionsrealty.com
1 vote Thank Flag Link Sun Jan 27, 2008
This is a question for an attorney, but my gut tells me no, not really, and that is one of the dangers of going after Short Sales. My experience In California has been that they are subject to bank approval, which now that there is a non-short sale buyer, no bank in their right mind would approve going short.

Do you love the home less at the new higher market price? Or did you only love it at the deal you were trying to get it for? If you do, why not try at the new market price? The seller may choose you for your perseverance and the fact that the inspections etc... are already done.
Web Reference: http://www.OCBeachBlog.com
1 vote Thank Flag Link Sat Jan 26, 2008
I'm sure that your Realtor is likely asking the same question- what a hassle for all of you. An attorney can confirm that there wasn't "offer and acceptance", which is unlikely if the second lienholder had not accepted the offer. Short sales are new territory, and in the pursuit of this type of transaction, an attorney is invaluable, as they are familiar with the contract contents. At least you all have a bit of experience now- perhaps your Realtor will find you a home without the hassles. In real estate, things seem to happen for a reason- good luck!
Web Reference: http://optionsrealty.com
1 vote Thank Flag Link Sat Jan 26, 2008
FORECLOSURE REALITY CHECK.... Seasoned investors who buy foreclosures know the REO manager at the bank and get "off market" deals. They never have to bid or find a place to learn what's available.

FOR ALL OTHERS: The only "sellers market" in america is the foreclosure market. Don't expect any deals from a foreclosure as the bidding process brings 20-30 people to bid on almost every deal. A deal that was already priced at market. For government foreclosed homes, by law, they have to be priced "at market".

The REO manager has a short list of "cash/close in 2 day buyers", they always get the first right to bid. Then they have to wait for the "public auction" Which drives up those prices. After a 30-60 day period. Then the REO picks the best bid. Sometimes, only sometimes does a REO manager take a property directly to a buyer he knows peronsally. Why should he, he has a bunch of people bidding and driving up the prices.

My REO manager friend likes to joke about all the "first timers" who continue to drive up the bid when they don't hear anything from the bank. Every time I see the "how come I haven't heard from the bank about accepting my foreclosure bid after 30+ days" on trulia, I have to let out a chuckle because he's so right. For those newbies, this is real. They know that when you don't hear from them that a large percentage of people drop a second or third offer higher than the previous one. **WARNING, YOU ARE BEING TAKEN ADVANTAGE OF HERE**

You want a deal on a property right, everyone wants that.... So the moral of this story is:
1. the 60 days you have to wait to hear from a REO, you could have made 2 or 3 better deals with a property that has been on the market for a long period of time. Any realtor can help you drop a crazy offer.
2. You are attempting to make a deal in a house covered in a cloud of bad energy, don't be surprised when it rubs off. Personally I stay away from these for this reason entirely.
3. One way to get a deal is dropping a hand written note on ANY house in a neighborhood you want to buy that says "my girlfriend and I want to buy a house in this neighborhood and yours looks cute from the outside. Do you know anyone that is looking to sell?" I always get responses, better prices and positive energy into the home.
0 votes Thank Flag Link Sat Jan 26, 2008
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