Cami Pinsak

Hi Andrew,
I so hope that it wasn't a fellow realtor that told you that. I just don't feel that it is really ethical to indicate that it is ok to renig on a contract that you signed up for. Having said that, let me step down off my high horse and acknowledge that I don't know your specific situation or circumstances.
The short sale itself, won't allow you to live any longer in your home before it sells at auction. Unless...you did get a viable offer in plenty of time to stop a sale. I highly recommend that you contact your bank and see if you can modify your mortgage to a point that you can continue paying something on your home.
Best of luck to you! - Wed Apr 23 2008, 19:23

One of the most frustrating points about buying a short sale property is that neither you nor your agent have any real control over the listing agent. The first thing that you should do after making an offer on a short sale is to have your agent contact a title company to see if a Notice of Default has been filed. If it has, then you are on a countdown. It could be 90 days, it could be 6 months with all the foreclosures that banks have. However, at least you and your agent know that there is a ticking time bomb.
We have had this happen when we represented buyers on short sales. No contact whatsoever from the listing agent. We kept thinking, "doesn't he want to sell this thing?". Finally, we resorted to just stopping in to his office every once in a while if we didn't hear from him. Of course, I recommend your agent does it with a smile and perhaps a small token of appreciation like a coffee or other little treat(that whole - you get more with honey than vinegar thing)!
My office and I have recently come up with a whole process for short sales on the buyer's side as well as the sellers side. One of the first things we do is send out a letter of intent to submit an offer on a short sale for this property. Then we ask pertinent questions re: the seller's short sale process. i.e. has a NOD been filed? How many months delinquent on the property are they? Do they have assets which would prohibit a short sale from being completed, etc. This allows us, as buyer's agents, to determine whether or not this is a viable prospect, regardless of whether we would offer full price or not. Additionally, by knowing if they are delinquent, and we know how much, we can somewhat figure if it is cheaper for the bank to foreclose on the property rather than accept an offer.
Basically, we cringe at short sales but are really trying to figure ou tnew ways to pierce the armor!!!!!!!!!! - Wed Apr 23 2008, 19:12

I'm not sure if you NEED to, but you SHOULD! Put yourselves in their shoes...if you've received a notice of default you haven't paid the mortgage and may be on the way to foreclosure. The decent thing to do is to give them time to find a new rental. If you decide to sell your house in a short sale, it will be easier to sell it without worrying about tenants rights, etc. - Wed Apr 23 2008, 18:59

Hi Jeremy,
It is the listing agent's duty to present ALL offers to their seller. If they don't, they are doing their seller a gross misservice. Any offer less than 10% is not a low ball offer in this declining market.
And while there is not excuse for an agent making disparaging comments to your realtor(father), this could still work.
While there may not be "recourse", per se. Go ahead and make another offer at the same price. Included with your offer, include a local CMA indicating avg. price per square foot. Additionally, include some price bids for reasonable updating - i.e. don't get crazy with granite and travertine. Lastly, ask in writing to have a written counter or rejection from the seller. This way, you can know, positively, that the seller actually was presented the offer. Did your dad have an opportunity to present the offer in person? Sometimes a face to face dialogue between agents can help give some insight as to certain aspects of the offer.
Good Luck! - Wed Apr 23 2008, 18:49

Hi Audrey,
If you have a lot of equity in your home, you may want to reconsider it as a rental. I know that you said you didn't, but perhaps your realtor can show you some rental comps. I know in our area, rentals are VERY strong and can generate a good amount of passive income. There are lots of reputable property management agencies who can take the day to day burden of rental management off of your shoulders and handle many of the details that you may not want to "deal" with.
Otherwise, I would definitely go ahead and place it on the market at a good/low price. Even if you are priced well now, if you aren't in the bottom 10% of properties in comparable size/condition, you will end up chasing the market. If you don't want to have two mortgages, even though you "can", go ahead and make the offer contingent upon selling your home. It may not be as attractive, but you will be protected. If you definitely want the house, list your house and make your offer non-contingent!
Good Luck! - Wed Apr 23 2008, 18:37