Does anyone on here have any advice or experience with short sales? I have heard mixed opinions on them. One realtor told me that they can take months and the bank usually wants market value, so you won't get a great deal. I have been keeping my eye on the market, but I am not in a rush. I already own a home that I plan to rent out if I purchase a new home, so I have the time to wait it out. I just wanted to know if it is worth considering or not because it seems like most of the houses that I find that I am interested in are short sales. Any advice is appreciated.

Don't do it.

I recently closed on a house in November, after putting in the original contract nine months beforehand. When I submitted my offer, the house had already been approved for short-sale.

The end result: it cost me much more than originally planned, the approving banks were a summabiatch to work with, and the "deal" that I thought I was getting, wasn't as much of a great deal in the final analysis. Granted, I still got the house that I wanted, in the area that I wanted, for a decent price (but not the *great* price that was originally advertised), but the process was extremely frustrating and brought me to tears on more than one occassion.

Does anyone on here have any advice or experience with short sales? I have heard mixed opinions on them. One realtor told me that they can take months and the bank usually wants market value, so you won't get a great deal. I have been keeping my eye on the market, but I am not in a rush. I already own a home that I plan to rent out if I purchase a new home, so I have the time to wait it out. I just wanted to know if it is worth considering or not because it seems like most of the houses that I find that I am interested in are short sales. Any advice is appreciated.

Cash talks.

It doesn't take months with cash.

The bank doesn't want to deal with buyers that require financing that would require them to make sure the house meets certain standards.

Example: you can't sell a moldy house to an FHA or VA buyer. But you can buy it for cash for little more than the land value.

That's why investors always beat out the nice guy.

:popcorn:

Don't do it.

I recently closed on a house in November, after putting in the original contract nine months beforehand. When I submitted my offer, the house had already been approved for short-sale.

The end result: it cost me much more than originally planned, the approving banks were a summabiatch to work with, and the "deal" that I thought I was getting, wasn't as much of a great deal in the final analysis. Granted, I still got the house that I wanted, in the area that I wanted, for a decent price (but not the *great* price that was originally advertised), but the process was extremely frustrating and brought me to tears on more than one occassion.
It makes absolutely no sense you had to go thru what you went thru. I have a co-worker who's daughter placed the winning bid on a forclosure auction house back in October. She figured she'd be in the house by the end of December. Here we are the end of January and she is several promises of a closing date later and still has no clue when it will actually be hers.

Of course there's also the problem that real estate agents will sometimes make sure the offer that gives them the best commission is the one the bank sees, and never even present other offers.

:popcorn:

It makes absolutely no sense you had to go thru what you went thru. I have a co-worker who's daughter placed the winning bid on a forclosure auction house back in October. She figured she'd be in the house by the end of December. Here we are the end of January and she is several promises of a closing date later and still has no clue when it will actually be hers.

We have a house on our street that's been auctioned off twice now, in the last 6 months...never got more than $175k either time. It was a $600K house originally....the buyers keep falling through.

We have a house on our street that's been auctioned off twice now, in the last 6 months...never got more than $175k either time. It was a $600K house originally....the buyers keep falling through.
From what I am hearing from co-worker from week-to-week, I'm willing to bet it's moreso the buyers getting tired of the endless and futile hoop jumps and they just plain walk away.

The house I'm talking about is in Calvert.

I already own a home that I plan to rent out if I purchase a new home, so I have the time to wait it out.

Keep in mind FHA recently changed their guidelines regarding rental property income. Before, all you needed was a signed lease. Now, you need 12 months of rental income in order for it to count. Meaning, if you plan to rent your current home while purchasing another, you must qualify for both mortgages.

Short sale-dom is a NIGHTMARE.

We had a deal in HAND a year ago and were willing to take back the balance, a personal note of about $50k, and they, WELLS FARGO dicked around and dicked around and dicked around for over 120 days until the buyers finally threw up their hands and walked.

I've talked to several people who specialize in short sales and they say the same thing; it's the wild, wild west. Policy and procedures and how to handle this have been left to the winds and there is one and only one reason for this;

TARP.

Absent TARP, banks would have long ago set up procedures and figured out how to deal with this. With TARP they had ZERO reason to do so.

:buddies:

From my research, short sales are really a joke. Seems the process, like Larry said, is not standardized, and your odds of hitting a pinata in an otherwise empty Astrodome are better than finding a bank that does more than wait months, then spin the "Great Wheel O'Realty" which has 50 spaces for waiting, 3 for stupid hoops, and one for actually moving ahead in the process. You would be better served waiting for the property to go foreclosure.

One I had my eye on, it was listed as a short sale for over a year, nothing happened. It hit foreclosure at 40K or so less than than the short sale price, and an offer was accepted within three days, closing was going to happen within two weeks from acceptance.

Thanks for all the feedback! I think I'll stay away from the shortsales. It doesn't make sense though. You would think the bank would lose a lot more money foreclosing on the house rather than selling it.

Badgirl- I'm glad you were able to finally get your house! Nine months is a crazy long time, but I hope it was worth it. You would think they would be giving the houses away after expecting people to wait around that long...

Thanks for all the feedback! I think I'll stay away from the shortsales. It doesn't make sense though. You would think the bank would lose a lot more money foreclosing on the house rather than selling it.

Badgirl- I'm glad you were able to finally get your house! Nine months is a crazy long time, but I hope it was worth it. You would think they would be giving the houses away after expecting people to wait around that long...

If the loan was insured against foreclosure with PMI, or an FHA or VA loan guarantee, the bank loses nothing by foreclosing. The insurance payout triggers.

As for many of the conventional loans, the original bank that made the loan no longer owns the loan; it was bundled up, securitized, and sold to someone's pension plan.

:popcorn:

If the loan was insured against foreclosure with PMI, or an FHA or VA loan guarantee, the bank loses nothing by foreclosing. The insurance payout triggers.

As for many of the conventional loans, the original bank that made the loan no longer owns the loan; it was bundled up, securitized, and sold to someone's pension plan.

:popcorn:

Interesting. My understanding of the VA is they don't, and have never, insured entire mortgages.

They would insure what would be considered a downpayment amount so at the MOST 20% of your mortgage would be "VA Insured" so if you are talking foreclosures where the house goes for <40% of owed value than they are losing MORE than if they shortsold it for 70% of the owed value.

Interesting. My understanding of the VA is they don't, and have never, insured entire mortgages.

They would insure what would be considered a downpayment amount so at the MOST 20% of your mortgage would be "VA Insured" so if you are talking foreclosures where the house goes for <40% of owed value than they are losing MORE than if they shortsold it for 70% of the owed value.

You're correct, but the amount of house you can buy via VA has rose substantially during the bubble years.

"The maximum VA loan guarantee varies by county. As of 1 January 2011, the maximum VA loan amount with no down payment is usually $417,000, although this amount may rise to as much as $1,094,625 in certain specified "high-cost counties".[1] VA also allows the seller to pay all of the veteran's closing costs as long as the costs do not exceed 6% of the sales price of the home."

"Your basic entitlement is $36,000. For loans in excess of $144,000 to purchase or construct a home, additional entitlement up to an amount equal to 25 percent of the VA county loan limit for a single family home may be available."

VA loan - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/VA_loan)

So it looks like the answer on VA is the banks have 25% to play with.

Pre-Loan Frequently Asked Questions - Home Loan Links (http://www.benefits.va.gov/homeloans/faqpreln.asp)

:popcorn:

Interesting. My understanding of the VA is they don't, and have never, insured entire mortgages.

They would insure what would be considered a downpayment amount so at the MOST 20% of your mortgage would be "VA Insured" so if you are talking foreclosures where the house goes for <40% of owed value than they are losing MORE than if they shortsold it for 70% of the owed value.

"An FHA loan is a loan insured against default by the FHA. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay. Because of this guarantee, lenders are willing to make large mortgage loans."

FHA Loans - Pros and Cons of FHA Loans (http://banking.about.com/od/mortgages/a/FHALoans.htm)

We have a house on our street that's been auctioned off twice now, in the last 6 months...never got more than $175k either time. It was a $600K house originally....the buyers keep falling through.

That is a HUGE depreciation.

That is odd. Don't suppose you could give us the address of that house. We can probably figure out whats going on.

Short sales are a PITA for everyone on the buying side IMO, be prepared to wait.

I waited 7 months from the time I signed a contract until I moved in. The bank took 3 months to approve the short sale and then the seller filed bankruptcy. I am sure he was being advised on his side to do this - because it was within days of the bank's approval that it happened. And once he did - the bankruptcy court had the time line and we had to wait for them to do their thing before we could.

The RE Agency said they couldn't (wouldn't) let me rent the house while waiting on it (it was empty and clean). I had to go to a lot of expense of moving twice, living in a smaller place, (and storing most of my furniture/belongings) taking one kid to and from school every day to stay in his district (because I had to rent a temp. place & it was JUST over the district line) for SEVEN months!

It was an ungawdly huge amount of stress, and I, like badgirl, was in tears on more than one occasion over the whole thing.

In the end, I got the house, and I did also qualify for the first time homebuyer's credit. But it was a huge PITA and I wouldn't do it again if it meant I had to go through all the crap again.

Of course there's also the problem that real estate agents will sometimes make sure the offer that gives them the best commission is the one the bank sees, and never even present other offers.

:popcorn:
That is when the realtor gets reported to the Real Estate Commission and possibly loses their license.

That is when the realtor gets reported to the Real Estate Commission and possibly loses their license.

Give me a break.

That's a load of crap, to put it nicely.

Have you ever viewed the disciplinary action page for real estate agents on the state's website?

Have you read some of the stories about Maryland real estate agents that have went to jail for fraud? They're not even on the page; they just simply and quietly revoke their license.

Go view it and get back with me.

:whistle:

Give me a break.

That's a load of crap, to put it nicely.

Have you ever viewed the disciplinary action page for real estate agents on the state's website?

Have you read some of the stories about Maryland real estate agents that have went to jail for fraud? They're not even on the page; they just simply and quietly revoke their license.

Go view it and get back with me.

:whistle:

You were abused by real estate agents as a child, weren't you? That at least makes your animus towards them and their profession understandable.

:buddies:

You were abused by real estate agents as a child, weren't you? That at least makes your animus towards them and their profession understandable.

:buddies:

No Larry,

This nation was abused by real estate agents.

Are you saying what I wrote above is not true?

Disciplinary Actions - Maryland Real Estate Commission (http://www.dllr.state.md.us/license/mrec/mrecdisc.shtml)

:popcorn:

Are you saying what I wrote above is not true?

:popcorn:

No. I am saying it seems you were abused by real estate agents as a child and that would explain your animus towards them and their industry.

I mean, you know a lot of detail that the average Joe and Jane wouldn't. Unless they had a real hard on for them. So, I am speculating they done you wrong somewhere along the line.

No. I am saying it seems you were abused by real estate agents as a child and that would explain your animus towards them and their industry.

I mean, you know a lot of detail that the average Joe and Jane wouldn't. Unless they had a real hard on for them. So, I am speculating they done you wrong somewhere along the line.

Maybe I thoroughly studied the housing industry and its inner workings before I made the biggest investment of my life instead of trusting someone that has to take one college class to sell it to me.

There's a low bar to entry and it's very loosely regulated.

:killingme

No. I am saying it seems you were abused by real estate agents as a child and that would explain your animus towards them and their industry.

I mean, you know a lot of detail that the average Joe and Jane wouldn't. Unless they had a real hard on for them. So, I am speculating they done you wrong somewhere along the line.

Being that you're so convinced I was abused by real estate agents as a child: what exactly are you implying that they did to me?

Are they pervs?

Did they molest me?

Steal my lunch money?

Sell my parents a house while hiding toxic environmental details?

:killingme

You were abused by real estate agents as a child, weren't you? That at least makes your animus towards them and their profession understandable.

:buddies:

I think A_Boy was abused by lots of different people as a child; there does not appear to be anybody left out of his hate demographic.

Pssst:

Hey eff-tards...

Ask the Real Estate Commission what they did about this guy?

Ask them when they took his license to operate as a real estate broker?

Former Charles County Attorney Pleads Guilty to Defrauding Clients, Lenders - Southern Maryland News, Charles County, Calvert County and St. Mary's County News (http://www.thebaynet.com/news/index.cfm/fa/viewstory/story_ID/20387)

:killingme

Give me a break.

That's a load of crap, to put it nicely.

Have you ever viewed the disciplinary action page for real estate agents on the state's website?

Have you read some of the stories about Maryland real estate agents that have went to jail for fraud? They're not even on the page; they just simply and quietly revoke their license.

Go view it and get back with me.

:whistle:

don't have to -- experienced it, reported it, agent lost license for 15 years

don't have to -- experienced it, reported it, agent lost license for 15 years

What was the offense?

:popcorn:

Come back Larry!

You're not attacking me because real estate agents are plastered all over your wife's website here, and because they're a big source of her income, are you?

:whistle:

Maybe I thoroughly studied the housing industry and its inner workings before I made the biggest investment of my life instead of trusting someone that has to take one college class to sell it to me.

There's a low bar to entry and it's very loosely regulated.

:killingme

Not arguing with your point. Far from it. Just an observation.

:buddies:

Of course there's also the problem that real estate agents will sometimes make sure the offer that gives them the best commission is the one the bank sees, and never even present other offers.

:popcorn:

You are so WRONG!!! That is totally against the law and agents DO go to jail for it. Along with getting HUGE HUGE fines and loosing their license.

That is when the realtor gets reported to the Real Estate Commission and possibly loses their license.

Give me a break.

That's a load of crap, to put it nicely.

Have you ever viewed the disciplinary action page for real estate agents on the state's website?

Have you read some of the stories about Maryland real estate agents that have went to jail for fraud? They're not even on the page; they just simply and quietly revoke their license.

Go view it and get back with me.

:whistle:

Did you bother to notice that the site is NOT UP TO DATE???????

Maybe I thoroughly studied the housing industry and its inner workings before I made the biggest investment of my life instead of trusting someone that has to take one college class to sell it to me.

There's a low bar to entry and it's very loosely regulated.

:killingme

Have you ever taken the boards to become a licensed real estate agent? I think not. They are NOT easy and it is regulated by more then one entity.

Pssst:

Hey eff-tards...

Ask the Real Estate Commission what they did about this guy?

Ask them when they took his license to operate as a real estate broker?

Former Charles County Attorney Pleads Guilty to Defrauding Clients, Lenders - Southern Maryland News, Charles County, Calvert County and St. Mary's County News (http://www.thebaynet.com/news/index.cfm/fa/viewstory/story_ID/20387)

:killingme

Now you really look like the true ass you are. This guy was a LAWYER. NOT A R.E. BROKER. He is not required to hold a realtor license to practice law and do closings on real estate properties for his clients!!! :dork::loser::loser:

You might just win the biggest dumbass of the day award.

Who is this guy?

FRANK P JENKINS EXIT PRO HOMES REALTY 107 CENTENNIAL STREET #300
P.O. BOX 2027 LA PLATA MD 20646 2011-11-09 BROKER 626012

https://www.dllr.state.md.us/cgi-bin/ElectronicLicensing/OP_Search/OP_search.cgi?calling_app=RE::RE_personal_name

Is this not the person in the article?

:popcorn:



You are so WRONG!!! That is totally against the law and agents DO go to jail for it. Along with getting HUGE HUGE fines and loosing their license.





Did you bother to notice that the site is NOT UP TO DATE???????



Have you ever taken the boards to become a licensed real estate agent? I think not. They are NOT easy and it is regulated by more then one entity.



Now you really look like the true ass you are. This guy was a LAWYER. NOT A R.E. BROKER. He is not required to hold a realtor license to practice law and do closings on real estate properties for his clients!!! :dork::loser::loser:

Exhibit B:

From the comments section:

"So, WaPo... is/was Jenkins living in the house? Just wondering.

This is a waterfront house that has been on and off the market since Aug., 2005. The most recent list price was $330,000, and the house came off the market again in early May of this year. Is the company that had the house listed for sale up until May, and NOT involved in this property transfer, a victim of Jenkins' shenanigans, also?

According to the multiple list and MD tax record, less than two months after the house came off the market in May, the deed transfer from the seller to Frank Jenkins was recorded at the courthouse - sale price $300,000. And after being on and off the market for four years and finally selling for $300,000, he's going to FLIP it and sell it for $500,000? Really? How much money was he planning to put into this property to make it worth half a million dollars? And whose money was he going to spend?

There could be a question as to when the property was really transferred (settlement date.) The recordation date at the courthouse is not necessarily the settlement date. Has anyone looked for the HUD1 - the standard federal settlement sheet - and checked the settlement date? Who handled the settlement? The lawyer Frank Jenkins?

WaPo reporter... Did you know that Jenkins is also a real estate broker of record, (although probably not for long after MD DLLR and the MD Real Estate Commission gets through with him)? Jenkins has some really good, decent people working under his broker's license. The disgrace he has brought upon those who worked with him is a d@mned shame.

Dig deeper, WaPo, dig deeper."

Trusted Md. Lawyer Accused of Plundering Client's Estate - washingtonpost.com (http://www.washingtonpost.com/wp-dyn/content/article/2009/09/16/AR2009091603249.html)

:killingme

Exhibit C.

20620 GOLDEN THOMPSON RD (http://sdatcert3.resiusa.org/rp_rewrite/details.aspx?AccountNumber=07029640&County=19&SearchType=STREET)

C'mon back Suz!

:smack:

"An FHA loan is a loan insured against default by the FHA. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay. Because of this guarantee, lenders are willing to make large mortgage loans."

FHA Loans - Pros and Cons of FHA Loans (http://banking.about.com/od/mortgages/a/FHALoans.htm)

FHA is not VA now is it??

FHA is not VA now is it??

Not at all, they're still separate entities.

But equally broke functionally and financially.

:popcorn:

It makes absolutely no sense you had to go thru what you went thru. I have a co-worker who's daughter placed the winning bid on a forclosure auction house back in October. She figured she'd be in the house by the end of December. Here we are the end of January and she is several promises of a closing date later and still has no clue when it will actually be hers.

IF you buy a forclosure make sure that there is a clear title.. Two days before closing they were advised that there was not a clear title... So they didn't settle until 2 months later so it's kind of hit or miss.. The price they paid for the house was a steal literally but at the same time it was a pain in the a*&. I'm not sure how the title works in a short sale

IF you buy a forclosure make sure that there is a clear title.. Two days before closing they were advised that there was not a clear title... So they didn't settle until 2 months later so it's kind of hit or miss.. The price they paid for the house was a steal literally but at the same time it was a pain in the a*&. I'm not sure how the title works in a short sale

Actually, you should buy title insurance. Not the title insurance you are required to buy for the lender, but your own policy. There's a difference.

:popcorn:

I sold my house as a short sale in 2009. The buyer (who, ironically, is a friend) only had to wait 3 weeks for approval from my bank. My real estate agent was shocked that 1) they accepted the offer and 2) they approved it so fast. So, maybe it just depends on the bank?

I sold my house as a short sale in 2009. The buyer (who, ironically, is a friend) only had to wait 3 weeks for approval from my bank. My real estate agent was shocked that 1) they accepted the offer and 2) they approved it so fast. So, maybe it just depends on the bank?

Probably depended on the offer amount and the time frame in 2009.

That was a pretty dark year for the banks in this country.

And the taxpayers that bailed them out.

:popcorn:

Probably depended on the offer amount and the time frame in 2009.

That was a pretty dark year for the banks in this country.

And the taxpayers that bailed them out.

:popcorn:

Very true. She paid $70,000 less than what was owed on the house. I guess the bank didn't care since they weren't losing much due to Obama's housing plan. I'm thankful for it because we didn't have to go to foreclosure and our credit isn't wrecked at all.