I found an affordable short sale house and had my buyer agent contact the

Asked by Lollipop, Vienna, VA Thu Jul 17, 2008

seller
agent to schedule a walk-through. The seller agent told my agent that the house would be taken off the market and placed back on market on July 20th.
I just found out the house is going up for auction on the courthouse steps on July18th. the lien is for 210k, and the lowest price it was listed for was 169k before going on tempoff. The listing started at 200k, then went to 189k, then to169k in a matter of several months with no sale.
I'm wondering if the house doesn't sell, and gets listed as an REO on July 20th, what would be he approx. new listing price? Would the price go up now that the bank owns it? I am approved and ready, just wanted a walk-through that never happened (supposedly the owner had problems showing due to a tenant in the property?)

Thanks for any insight.

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9
Vicky Chrisn…, , 20176
Thu Jul 17, 2008
(1) I am not certain how anyone can know when the property will be re-listed. Perhaps she meant AFTER July 20th. The bank will base their price on the Brokers Price Opinion and the appraisal they recieve. Since you have a buyers agent, you should ask him/her what the price might be. Without knowing the specifics of the property, no one here can tell you what the price will be -it won't be based on the data you gave.
(2) Buyers, in general, aren't crazy about short sales, and since they are harder than REOs, that is reasonable. Add to that "difficulty" showing.... my point is, if they've had no offers, I don't think it is necessarily a reaction to the price (although it might be-again I don't know what property you're referring to).
(3) If the tenants were a problem before, they may be a problem after the foreclosure, as well. Who knows when the bank will get them evicted. On the other hand, maybe the tenant will just go once ownership has turned over.
(4) What else is available to you? If you haven't seen this property, it might not be at all what you are expecting, and there are lots of deals out there.
(5) There is reference to a blog post that might help you. It talks about REOs, but the same valuation principles affect a banks' reaction to offers on a short sale - and then it is complicated by the short sale evaluation.
Best wishes. Feel free to contact me with any other questions.
http://www.VickyChrisner.com
1 vote
Cindy, Home Buyer, Cuyahoga Falls, OH
Tue Jul 29, 2008
i've seen them list for below the sheriff sale price only once.
there is one now that was 140,000 at the sheriff sale and the bank just listed it for $240,000n so it is very unpredictable
0 votes
FrankyRealty, , Arlington, VA
Mon Jul 28, 2008
It can take 2-4 months to hit the MLS.

Sometimes they list it for $10k-20k over their takeover amount, but then after 30 days they will try to get the amount they paid at the courthouse steps.

But they will be looking at the comps in the area and will price it well below that. Well usually that is.

Frank
0 votes
Tina Merritt, Agent, Blacksburg, VA
Fri Jul 25, 2008
There are so many variables that go into a foreclosure that there really is no way of knowing what it will be listed for. There could be additional liens on the property, the owners could have filed bankruptcy, there could be property defects which could prevent a sale....and on and on. Then, there is also the issue of who issued the mortgage insurance for the property (if any). It could be 2 months or 2 years. Keep an eye on it; however, don't wait holding your breath....it could be a long time.
Web Reference:  http://www.tinamerritt.com
0 votes
Lollipop, Home Buyer, Vienna, VA
Thu Jul 17, 2008
I see what you mean, that's my biggest fear is the tenants or owner messing up the place just before leaving and messing up what would've been a normal place. I guess I just wait and see when someone contacts my agent. We both didn't know about the auction until I found the newspaper posting online.

Thanks for all the input on this!
0 votes
Cindy, Home Buyer, Cuyahoga Falls, OH
Thu Jul 17, 2008
also the bank may not put the property up for sale right away. and i would be shocked if it is two days.
around here i have seen it take from 2 months to a year for them to put it on the market after the sheriff sale.
0 votes
Cindy, Home Buyer, Cuyahoga Falls, OH
Thu Jul 17, 2008
you would never get thru calling the bank on your own.

the court ordered the house to be sold at auction, so there is no way you could buy it and stop the auction.
you would have to go to the auction and buy it thru the court.
personally, i would be afraid to do that if you haven't seen the inside.
you may not even want it after you get inside.

i think you better cool your heels or you might get burned badly.
alot of people tear up the properties, still the pipes, put cement in the toilets, you name it. anything to get back at the banks.
0 votes
Cindy, Home Buyer, Cuyahoga Falls, OH
Thu Jul 17, 2008
too bad you didn't get in. you could of bought it at the sheriff's sale.

look up the sheriff's sale.
it will tell you the property appraisal and the minimum bid to buy it.
it will also give you the name of the bank that foreclosed on it. they will be the owner if no one makes a bid on the house.
somebody could buy the house at the sheriff's sale. like the tenants or anybody.
too bad you couldn't get in to see it.
then you could buy it at the sheriff's sale.

the bank will raise the price trying to recoop some of their losses and expenses of the foreclosure.
0 votes
Lollipop, Home Buyer, Vienna, VA
Thu Jul 17, 2008
Thanks for the article link. In late June, after I finished getting approved and was ready, the seller agent said July 20th. My agent relayed that to me and explained that maybe that's when the tenant would be moving out and the house would be available for showing. I just find it weird that soon after, the notice went out in the paper about the trustee sale.
I'm a first timer here, and I have lots of questions.

On another note, a realtor friend advised me to call the bank directly, or ask my agent to call the bank and see if we can still make an offer before the auction. Is this crazy?
0 votes
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