Booner72 wrote:The house we are trying to buy via short sale is set for Auction 8/17/11 - I googled the address.
The last I heard earlier this week was that the seller's bank is doing the "offer of value" ...........whatever that means............. and that should take 5-7 days.
Once it is at the "going up for auction" point, isn't that too late? I've emailed "The REALTOR" (he is seller's realtor really) and he hasn't gotten back.
We haven't even really started our financing yet bc we're trying to get the score up some more. We have a LO but nothing has been sent to UW or anything.
I bought a short sale about two years ago and the same thing happened. While waiting for the bank to respond to my offer, it actually went to a courthouse steps foreclosure auction. I showed up to bid, only to find out that it was removed from the auction at the last second. Then, two weeks later the same damn thing happened again. There were only a couple of us there to meet the auctioneer, it was interesting...
My advice: Don't get discouraged, it might not actually get auctioned. If it's bank owned at time of auction and there ar no other liens you might be able to get an even better deal by showing up on the courthouse steps to bid. A good local title company can help you verify that. Most importantly, make sure you understand the funding timelines and obligations should you buy at auction, and make sure you can come up with the money.
Short sales are great deals if you can handle the stress. It was worth it for us; we paid 179k for our house, and six months later our next door neighbor bought at 235k, with the market still way down. If the market ever rebounds to pre-2008 levels we could see our value double.
Hang in there! This was a hell of a ride for me as a first time home buyer but it was worth it.
Booner72 wrote:-P = thanks so much. How do you buy a house at an auction w/o having a cashier's check ready to go? Would I be able to get an FHA loan that way? When you showed up at the courthouse- how were you prepared to pay for the house?
We had a check ready to go... That really only works if you can figure out a way to do that, if you maybe know someone with a lot of money that trusts you... Or can call in a favor from someone you know. I have a unique situation that allowed me to have a check in hand both times.
Also -- You said "no other liens" --- Does that mean a 2nd mortgage? I know there is about 1000.00 dollar lien against the seller because of HOA fees. I was told the bank would be paying that. ????
If you bought it a short sale the bank may cover that as part of thier terms, but in a foreclosure auction you would likely be stuck with it. You might be able to negotiate with the HOA for a partial payoff or payment terms, depending on how they are. I had to pay 3 years of road association dues when I bought mine. Make sure you are talking to a good local title company you trust.
I know the shortsale will be worth it. Otherwise there is no way in heCC I'd be doing this. I do believe I am slightly (largely) insane due to it all. I've developed OCD/Anxiety/Depression/Bipolar Type I and a slew of other problems including and up to a pending divorce and possibly child neglect. (It's a good thing my kids are old enough to feed themselves). It has affected my work performance. I have quit going to the gym. I don't email/text/facebook any of my friends. My whole live has been taken over by this consuming monster of a short sale.
Sounds about right. Hang in there... Chances are they won't let it be auctioned off if they have an offer on the table. I suggest you try getting a hold of someone at the bank through your agent as well. Good luck!
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