House I am interested in is going to sheriff sale in less than 2 weeks and I have multiple questions [long]

Asked by Scott, Tulsa, OK Sun Jul 20, 2008

The home is 10 years old and in a very nice neighborhood around Tulsa, OK...I will be living in the home and not
puchasing it as an investment. The home is not currently on the market/listed but the owner was able to show me the home about a month ago (superficially in good shape but at least needs some repairs like new carpet ). The lender is Countrywide which certainly does not help things. My realtor appears inexperienced in the foreclosure process (as am I) and does not even know what a "short sale" is. We were waiting for information about he payoff and after finally obtaining the info last week we find out on Friday it will be auctioned soon. Owner does not help out the situation as he appears pretty disengaged. I am unclear as to all the details right now, but the house may have
been on the marekt for a while last year at above market value (? 240K) and could not sell. Owner said there was an
offer for 205K placed a few months ago which would have been a short sale....

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Susie Genet, Agent, Tulsa, OK
Sun Jul 20, 2008
I will let someone else answer your questions regarding the auction process, as I really don't feel that I can adequately address that. The short sale portion of it I can help with! It is possible, (not very, but possible) that the bank would consider a short sale at this point. You would need to very quickly submit an offer on the property but in order to do this, you will need the homeowner's cooperation. Since the homeowner still techinically owns the property, they would have to sign off on the offer as well as give the realtor authorization to discuss his mortgage account with Countrywide. Since you already have your realtor involved on the selling side, one way to resolve this would be to have the homeowner work with an experienced short sale agent on the listing side. Again, requiring the homeowner's involvement and cooperation.

Feel free to e-mail me directly if I can answer any questions about short sale for you
1 vote
David M. Hag…, , Tulsa, OK
Fri Oct 29, 2010
You definetly need to deal with someone with knowledge on foreclosures and short sales. It can be done, but need the cooperation of the seller. Why would he be willing? A foreclosure last 7 years on his credit, while a short sale last only 2 years. Unless he is cratering into bankruptcy he should listen to a solution to his problem. If he received an offer and his property is not listed by a REALTOR® he is just wasting his time. Still if it is listed and the REALTOR® isn't experienced in short sales, he has a problem. We go to school on these things. Call a REALTOR® and get this deal done!
0 votes
Steve and Ma…, Agent, Tulsa, OK
Sun Jul 20, 2008
Dear Scott,

We will be happy to go over all details with you. First things first, we need the address to start. Once we have the address, we can answer all fo the questions you have. Just call us at 918-747-5000 and we'll walk you through.

Best regards,

Marcy Wilson, Broker
ZION Real Estate
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Mary Margaret…, , Fairfax County, VA
Sun Jul 20, 2008
Hi Scott,

I read through all of your questions and my impression is that you need a more experienced agent who can aggressively track down your options for buying this house. It doesn't sound like the house is currently on the market, though.

You say you did not sign a Buyer's agency agreement, so in reality, you are not obligated to purchase through this agent. I hope she appreciates your loyalty. What you might consider is asking the agent to refer you to someone else in her agency who has more experience with the type of transaction you are trying to do. She would refer you for a referral fee which is a percentage of the buyer agent's commission paid by the agent, not you. This is generally a win-win situation since the experienced agent gets business she/he did not have and the referring agent still "takes care" of you by getting someone else to represent you.

To answer your questions about listing history, your agent should be able to look in the MLS and find it out, even though the house is not currently listed. She an also get you public record info such as assessments and taxes. While she is there, she can get you comparable sales in the neighborhood. Last year's information is probably too old, but it will give you local sales trends.

You may have a pre-approval from a bank, but from reading your questions, it sounds like you might need to get that detail done sooner rather than later. A pre-approval letter from a lender (ask your agent for a referral to a knowledgeable local lender) will assure the seller that you are qualified to borrow and the lender is willing to lend you the amount needed to purchase a house at that price. You do no have to have a specific house in mind. That is one of the first steps I take when working with a buyer. Imagine your disappointment if you found the right house but you didn't qualify for a loan at that price.

If the house is to be auctioned, is it an auction on the courthouse steps or a real estate auction? There are a couple of real estate auction houses in Tulsa (I looked them up on the internet) who could give you particulars about real estate auctions. With a courthouse steps auction, sometimes the only one who shows up is the auctioneer. Since someone ordered the auction, there is usually a minimum price that will be accepted.

Finally, as you have experienced, a short sale requires a lot of patience and persistance. A foreclosure is actually easier because the bank has repossessed the house and will be selling the house with a clear and marketable title. All the liens are cleared. The bank will want a certain minimum price to cut it's losses and will want to sell the house to get it off it's books. By the way, you can get a home inspection for information purposes to find out if repairs are needed and if it is still a reasonable purchase for you. Ask your agent (probably the new one) for her thoughts on this.

Best wishes.
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Scott, Home Buyer, Tulsa, OK
Sun Jul 20, 2008
I am still trying to learn all the details but the assessed value from the county is about 240K. Based on other homes selling in the past year in the area plus the repairs I am aware it needs...I would estimate the market value closer to the 205K-215K range (similar to previous known offer). However, the payoff is 227K which is more than I would be willing to pay. The appraised value from the auction ad is only 200K (not sure what this number means). I am not necessarily looking to get some "great" deal on it, but like the house more than what else is also already emotionally spent by the house search process...

At this point I think my options are limited now with this house which would include 1) give up and move on; 2) try to halt the the process with a short sale and rush to try to find a new agent in my area who specializes in foreclusres who may have some contacts at Countrywide (doubtful); 3) try to bid for it on auction; 4) allow the bank to buy it back at auction and take my chances that I could get it as an REO later

1) Auction: Can I get financing? In OK need just 10% cashier's check within 1st 24 hours if you are the winning bidder (I can cover this) but the remainding 90% apparently within the next 2-4 weeks (would need a loan). Would the bank just be willing to buy it back for the payoff of 227K and not necessarily market value/their BPO? (this is what I have read happens in other states (especially those that dpn't allow deficiency judgements against the borrower)...then the auction would just be a waste of my time as I wont pay that much...). Would I be responsible for other leans/mortgages on the house (there appear to be possibly several pricey leans including 10K hospital bill) or should they be wiped out through the auction process? I am aware the auction is the risky way to obtain this house as I dont know what else may be wrong with it and if the owner may not try to sabotage it...

2)Short sale: Would it even be possible at this point to stop the auction with a proposed short sale offer this late in the game and the lender being Countrywide? (I dont think the owner has made any payments in quite a while (my realtor told me 4 years but that seems impossible to me) so I don't know if they would want to work with him in a short sale anyway.) I would have to get a new realtor with experience in short sales and so would have to pretty much fire my previous realtor. Is this even possible (I did not sign a buyer's agreement and found the home in question by myself and then let her get involved with it)?

3) Post-auction: How likely would it really be to really be able to possibly get this post-auction before it is officially listed as an REO and have other potential bidders?

...Sorry for the long post...any comments/answers/suggestions would be appreciated...thanks
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