AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

kraig · ‎08-26-2008

We found a house we love.

So we are completely approved, have a mid score of 720, put a really solid offer in and have been waiting for 8 weeks for Wells Fargo to approve our offer. The really stupid thing is, they are losing money with this waiting around. No wonder these pillars of incompetance are going under. My advice to anyone is to avoid short sale homes like the plague.

Anonymous · ‎08-26-2008

Isn't this the same as the above post?

That said, again, there may be numerous reasons why the bank is taking forever or needs certain amount to agree. Your realtor should have asked the owners prior to submitting an offer if they already had a preliminary bank approval and at what price. Without that, you will wait forever and mroe than likely end up with nothing. It's not the bank's fault the people defaulted adn there may be thousands of dollars in back taxes, liens, HOA's 2nd or 3rd mortgages, etc that prevent the bank from doing an under the market short sale. They are not going to sell a house for 200K if by the time they pay fees, taxes, realtors, etc there is no money left. They are better off to let it go to foreclosure. This is even more so if it involves multiple lenders.

Lel · ‎08-26-2008

@kraig wrote:
We found a house we love.
So we are completely approved, have a mid score of 720, put a really solid offer in and have been waiting for 8 weeks for Wells Fargo to approve our offer. The really stupid thing is, they are losing money with this waiting around. No wonder these pillars of incompetance are going under. My advice to anyone is to avoid short sale homes like the plague.

As short sales go, 8 weeks waiting for a response is not a long time. Everyone who tries to make an offer in a short sale situation should expect a long wait, and in the end, be prepared to have the offer inexplicably rejected. That's the way it always has been, and with more and more buyers upside down and in distress, it's only going to get worse.

I'm not trying to justify the way the banks operate, but that's just the way it is.

Anonymous · ‎08-26-2008

We are waiting to hear if our offer was accepted by the bank, however the seller's agent had already been in negotiations with the bank and a couple days before we put an offer in he had gotten the newest appraisal from the bank stating what amount they wanted. He let us know what the bank wanted and we put it an offer for that. I really think they should stop calling them "short sales" because there is nothing short with them!!

I think one thing that might help us is we are going with Wells Fargo and the defaulted loan, actually two loans a 1st and a 2nd, are both with Wells Fargo. While the bank will be losing almost $200k on the deal at least they will recoup some monies by having us strapped into a 30 year fixed loan!

Good luck with your house, a girlfriend of mine had put an offer in on a short sale about a year ago and never did hear back from the bank, they ended up going with a regular sale they liked a lot more.

kraig · ‎08-26-2008

Isn't this the same as the above post?

No this is my first post on the subject.

Anonymous · ‎08-27-2008

I signed my contract in March 2008....as of today I'm still waiting.

Just yesterday I learned that the back "Aurora" wanted a counteroffer the asking/selling price.

By now my contract has expired because I had a lock in rate. The sellers lenders want me to sign an addendum to reestablish the contract...but I'm real hesistant now... to me this way to long for this to go on and I still have no guarantee that the loan will get approved... especially after reading the above posts.

Extremely stressful and frustrating.

Mona

Lel · ‎08-27-2008

@Anonymous wrote:
I signed my contract in March 2008....as of today I'm still waiting.
Just yesterday I learned that the back "Aurora" wanted a counteroffer the asking/selling price.
By now my contract has expired because I had a lock in rate. The sellers lenders want me to sign an addendum to reestablish the contract...but I'm real hesistant now... to me this way to long for this to go on and I still have no guarantee that the loan will get approved... especially after reading the above posts.
Extremely stressful and frustrating.
Mona

What's an "Aurora"?

DallasLoanGuy · ‎08-27-2008

Aurora is an old lender. Sounds like they own the second lien

Retired Lender

GettingBetter66 · ‎08-27-2008

My agent warned us away from these situations, telling us that it could take forever (months) and most likely would fall through in the end anyway. There are some really nice deals out there, but sometimes the worry, stress and heartache are just not worth it. Sorry to hear you are in this situation!

Lel · ‎08-27-2008

@DallasLoanGuy wrote:
Aurora is an old lender. Sounds like they own the second lien

Geez, I would say that short sales involving two lienholders should be avoided like the plague. Since the second lien is usually subordinate to the first, that means that in a short sale the second lienholder could really lose a lot of money, correct?

It takes long enough for a short sale with a single lender to go through. I can't imagine what the above situation would take.