Home Buying in Monrovia>Question Details

Hetal, Home Buyer in Monrovia, CA

I recently put an offer for 400,000 on a short sale that was listed at 450,000. My agent got back with me

Asked by Hetal, Monrovia, CA Tue Nov 4, 2008

after a few weeks and said the bank appraised the house for 460,000 and the bank had 4 backup offers that are very close to the asking price. My agent told me if we offered 450,000 he was confident we would get the house. The listing agent is a good friend of my agent and i feel that something is going on between the two agents and they want me to end up paying the full 450,000 price. Also the seller is the listing agents best friend.. Should i put an offer for 450000 or should i back out of the deal?

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Liz Steele’s answer
Every thing that has been stated thus far has merit. But every case is different.
As stated by the other answers this seems to be a difficult decision.
If you’re really want the property then stick it out other wise just move on.
I have also not represented that you follow this advice; this is just a suggestion in a public forum for review and not a professional consulted opinion in the matter

Liz Steele
Financial Specialist
Hawthorne Capital Corp.
Phone: (212) 231-0062 Ext. 5183
Cell: (347) 819-5682
Email: reduce300k@yahoo.com
0 votes Thank Flag Link Wed Oct 14, 2009
The realtors are not your problem. Short sales cannot happen for a number of reasons. The lender, bank whatever does not own the loan. The servicing agent must however accommodate the seller and appear as if they are working to a solution. There not! And the proverbial bank is a Wall Street Trust that does not own the loan at all. This game of loss mitigation is a joke. Second, the collateral for the property is lost.
Third the provisions of the investment Trust force the bank to replace the loan - in this market good luck.
And last, the lender will NOT repurchase a loan with recourse until its recourse in run out (after three years). Then there is no benefit to short sale whereby they can walk and leave the asset to the trustee.

Don't believe me? Check out how many homes went to foreclosure sale and now months later the REO still have the outstanding taxes due . . . I don’t think the realtors (example) are the problem. The NAR should get involved in the matter soon. They are now being duped like the rest of us into lender servicer unlawfulness - non sense. It’s hard to believe but true. You'll likely need to play “Colombo” and likely force the sale in a court of law and call there bluff.

If the Servicer has not identified such failure to provide an assessment and attestation for its liability and limiting its capacity to provide a Trustor a work out work out or remedies, these items are a material failure to fulfill its obligations under the related servicing agreement in the Servicer's Compliance Statement provided under Item 1123 of Regulation AB.

0 votes Thank Flag Link Sun Dec 28, 2008
All the other comments are correct. I would advise you get an independant appraisal of the property to determine the fair market value and present that along with your offer. This will prove your case with the lender with some support backing you. If I can assist you let me know as this is what I can provide also....
Web Reference: http://www.centuryside.com
0 votes Thank Flag Link Wed Nov 5, 2008
Are you going to be simply devastated if you don't buy this property???? If not, hold firm counter somewhere in between, but not their asking price. If the other offers were closer to asking price than yours, they would probably counter the closer to asking price offer first or the one with the least contingencies.
0 votes Thank Flag Link Tue Nov 4, 2008
You really should have or had a buyer broker that could advise you what the property is really worth in todays market, you can not and should not take on the world by your self. They may be correct or may be playing you. With a short sale the bank does not have to take anything less if they so choose, in most cases they will take 80% of what the seller owes. In a short sale there are not supposed to be back up offers as all offers are supposed to be submitted as they come in to the bank. No offer even if signed by the seller is valid until accepted by the bank. The bank want sthe highest net price for the home and encourages all offers to be submitted as they come in. You first need to see what the value of the house IS in todays market and figure out is that what you want to pay, if so go for it and if not back out. So you know that in most cases you can negotiate with a buyer broker so that it does not costs you jmanything out of pocket as the buyer agent gets paid at closing from the listing broker the fee offered in MLs. This way you have someone looking out for you. This is what you need.... good luck with your purchase.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Nov 4, 2008
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