Home Buying in California>Question Details

Aj, Home Buyer in California

Hi Everyone, We just recently submit an offer, about three weeks ago. It s a short sale deal, we offered

Asked by Aj, California Sat Apr 19, 2008

slightly under the listing price, but reasonable and with a faire amount of down payment. And there were two lenders were involved in this deal. We were told by the listing agent that the foreclosure date has been set for the 29th of April. We can’t contact the lenders directly, and so far we have no updated info what so ever from the listing agent. We were getting really concerned, what happens the property goes to foreclose before we even hear anything from the lenders. Any suggestions? :-(

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I agree with Pacita, do not contact the lender directly. Althought it is quite frustrating to be in the situation you are in you have to realize that only about 10% of short sales are going through. You have a better chance with a bank owned property, but there is more competition there as well.

Good Luck,
Web Reference: http://www.tristanhomes.com
0 votes Thank Flag Link Wed Jun 4, 2008
Why can't you contact the lender directly? if the agent is ignorning you then call the lender---that's if you can FIND OUT who the lender and the contact is. Go to my web site for some questions/answers on this frustrating foreclosure issue.
0 votes Thank Flag Link Sun May 18, 2008
I've been in this seat both as a seller's and buyer's agent. The bottom line is, it takes approximately 45 days to get a response from the lender's negotiator. And no, you can't contact the lender directly because your name is not on the authorized list of people who can inquire/follow up on the status of this loan.

The listing agent is probably just as frustrated as you are. What you can do is to ask your agent to call your title company and get them to research the property and see what the status is --- has a trustee sale been scheduled? Or has it been sold?

And no... you can't and shouldn't open escrow until after your offer is accepted by the lender who makes the final decision.

My most recent experience with this was extremely frustrating. We wrote a cash offer on a short sale. 45 days later, still no answer.

I called my title company who sent me a copy of the notice for a Trustee Sale. For gosh sakes, the listing agent didn't know! I was the one who told him. (Be resourceful, don't wait for the agent to do the research).

By the time we heard back from the listing agent, the trustee sale was one week away! He hustled to get it postponed. In the meantime, I instructed my buyer that if he still wants the house, to go to the Courthouse and bid. When he got there, he was told that the trustee sale was postponed for 30 days. Again, the listing agent didn't know!

A negotiator was finally assigned. Another 3 weeks go by. Finally, my buyer became extremely frustrated and agitated. After 70 days of waiting for a response, he decided to walk and go in a different direction.

Short sale is not for everyone. If you take your eye off the ball (other listings), you may miss some other good --- or better --- deals.


So....moral of the story....keep looking. Don't put all your eggs in one basket. Don't count your chicks before they're hatched. Blah blah blah.
0 votes Thank Flag Link Sat May 17, 2008
Lenders are often hard to get a response from regarding a short sale. The listing agent should keep trying to contact the lenders, but sometimes the more times that the agent calls the lender, the longer the lender will take to get back to the agent! Short sales are very hard to get together. If the property goes into foreclosure you still have a chance at a short sale, and you may be able to buy the home after it has been foreclosed upon.
0 votes Thank Flag Link Sun May 4, 2008
Hey Tara,
This property was originally scheduled for trustee sale on the 29th of April, and last time we checked, the sale date has been postponed due to mutual agreement. The Trustee sale price is actually a lot lower than what we have offered. The listing agent tried to contact the lender, but no response. There are two lenders involved, which makes this transaction a lot hard. I believe....Would you say we may have a good chance to get this house since they postponed the trustee sale date? Also, let’s say we open an escrow before the Trustee sale date, and more or less the escrow won’t close before the Trustee sale date, are they going to extend the date again or they will take the property off their trustee sale list?
Thanks in advance for your help! We are so anxious to know what is going to happen next, we have been patiently waiting for almost a month and half...
0 votes Thank Flag Link Sun May 4, 2008
Hello AJ,

Effectively, you have no power in the situation. The short sale process is lengthy and rarely successful. Only 5-10% of short sale listings actually close. Most are either taken off the market by the owner or face trustee sale and foreclosure. I would check to see if the property is being offered via trustee sale. This is where the banks try to offload pre-foreclosure properties. Typically the opening bid is set at the amount of the first trust deed loan balance. I have partnered with a company that can help conventional buyers in researching and procuring properties via trustee sales. Let me know if you would like more information.

As an agent, I make sure that my clients have a realistic mind set in regards to short sales. It is my position that you are better off limiting your search to bank-owned properties, standard re-sale properties or working with a company that can assist in a trustee sale purchase. It's a great time to be a buyer, with excellent opportunity to get a great value, but one needs to be patient and tenacious in this market.

Wishing you the best of luck in your search!
Tara
0 votes Thank Flag Link Mon Apr 21, 2008
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