no one knows what the bank will or will not accept. What they reject today they may accept tomorrow.....how is the bank any different than any other seller you have to take what the market will bring
Realtors Beware -- Short Sale Pricing
- Thread starter Smiling JOe
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no one knows what the bank will or will not accept. What they reject today they may accept tomorrow.....how is the bank any different than any other seller you have to take what the market will bring
It seems some banks have started moving the short sale process along a lot faster!
We have recently had some success with Country Wide and Wells Fargo! They are finally beginning to understand the short sale will bring more money then the foreclosure.
We have recently had some success with Country Wide and Wells Fargo! They are finally beginning to understand the short sale will bring more money then the foreclosure.
for?bear?ance (f?r-b?r
ns)
n.
1.) The act of suspending payment on a loan, sometimes resulting in a higher interest rate, that also allows for the accrued interest to be added (capitalized) to the principle balance.
2.) What millions of Americans did to their student loans to afford bloated mortgages they also couldn't afford.
n.
1.) The act of suspending payment on a loan, sometimes resulting in a higher interest rate, that also allows for the accrued interest to be added (capitalized) to the principle balance.
2.) What millions of Americans did to their student loans to afford bloated mortgages they also couldn't afford.
Short sales go through when the bank is satisfied with the final price, sometimes that means the seller has to show up at the signing with a check. Obviously they would be willing to do this to save their credit rating.
I believe in the state of Florida banks can sue former owners for deficiency judgments - cases where the bank looses a lot of money at the auction.
You can't advertise that you have something for sale for a certain price when you know you can't or won't sell for that price. In this case the only variable is the bank. Either you know the bank is in agreement or you don't.
817.44 Intentional false advertising prohibited.--
(1) WHAT CONSTITUTES INTENTIONAL false advertising.--It is unlawful to offer for sale or to issue invitations for offers for the sale of any property, real or personal, tangible or intangible, or any services, professional or otherwise, by placing or causing to be placed before the general public, by any means whatever, an advertisement describing such property or services as part of a plan or scheme with the intent not to sell such property or services so advertised, or with the intent not to sell such property or services at the price at which it was represented in the advertisement to be available for purchase by any member of the general public. (2) PRESUMPTION OF VIOLATION.--The failure to sell any article or a class of articles advertised, or the refusal to sell at the price at which it was advertised to be available for purchase, shall create a rebuttable presumption of an intent to violate this section.
Even if the lender won't disclose the amount they will accept? How can you know that which you cannot know? It is a tough call, unless, like in the case where the home last sold for $5million + and is now listed at $10,001? Some things are obvious, but others not so much.
Easy - either the listing reads "bank has pre-approved this short sale price" or "this short sale price has not been pre-approved by the lender".
As always, a little honesty saves you a ton in legal fees and wrangling. ;-)
As always, a little honesty saves you a ton in legal fees and wrangling. ;-)
Scooter, according to the FAR attorney, disclosure that lender hasn't approved the list price, is a separate issue and doesn't make it legal to advertise a property at a price which he or she knows the seller will not accept. So, it isn't as easy as a disclosure.
Not exactly. If a seller writes a check for the difference at the closing table, it isn't a short-sale. It is only a short sale if there is a deficiency (the seller cannot pay the difference). Sometimes, that means that the lender will "gift" the balance to the seller, and other times, the lender will hold the seller accountable for the difference. The latter is less common, but I'm working one of those right now.
gayboi, it gets a little tricky defining the different types of sales. Foreclosure is a legal process, which comes after default of payments. It can take about a year to get into foreclosure from the date you default on payments. The lender has filed foreclosure proceedings to take the property for default of payment, but hasn't yet taken the property. The seller is still the owner until after the bank takes the property back.
The next stage is REO (Real Estate Owned -- by the bank). This is when the lender has taken back the property and becomes the owner of record.
It can be difficult to understand the nuances, so thanks for asking. I'm sure many people are interested in learning more.
gayboi said:
Not exactly. If a seller writes a check for the difference at the closing table, it isn't a short-sale. It is only a short sale if there is a deficiency (the seller cannot pay the difference). Sometimes, that means that the lender will "gift" the balance to the seller, and other times, the lender will hold the seller accountable for the difference. The latter is less common, but I'm working one of those right now.
gayboi, it gets a little tricky defining the different types of sales. Foreclosure is a legal process, which comes after default of payments. It can take about a year to get into foreclosure from the date you default on payments. The lender has filed foreclosure proceedings to take the property for default of payment, but hasn't yet taken the property. The seller is still the owner until after the bank takes the property back.
The next stage is REO (Real Estate Owned -- by the bank). This is when the lender has taken back the property and becomes the owner of record.
It can be difficult to understand the nuances, so thanks for asking. I'm sure many people are interested in learning more.
My guess is that, as with many things related to this economy, the rules are in a state of flux. Lender policies will most likely change to reflect (potentially) growing REO divisions combined with a bleak outlook at least in the near term. What worked in the past may have little if any bearing on the present and foreseeable future. Much of this will have to be made up as we go along.