topic Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!! in Mortgage Loans

AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Tue, 26 Aug 2008 22:43:46 GMT

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.

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Tue, 26 Aug 2008 23:12:09 GMT

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.

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Lel — Tue, 26 Aug 2008 23:41:23 GMT

@Anonymous 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.

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Tue, 26 Aug 2008 23:43:25 GMT

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.

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Wed, 27 Aug 2008 00:00:11 GMT

Isn't this the same as the above post?

No this is my first post on the subject.

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Wed, 27 Aug 2008 12:35:21 GMT

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

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Lel — Wed, 27 Aug 2008 16:15:47 GMT

@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"?

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

DallasLoanGuy — Wed, 27 Aug 2008 16:57:56 GMT

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

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Wed, 27 Aug 2008 17:12:03 GMT

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!

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Lel — Wed, 27 Aug 2008 17:31:23 GMT

@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.

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Wed, 27 Aug 2008 17:43:23 GMT

This is not encouraging...I've heard over and over that short sales can be a royal pain. So it just figures that the house leading our list of possibilities is, of course, a short sale. Of course all this is moot since we have to sell our house first and apparently it isn't going anywhere...no showings in 2 weeks now...grrrr

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Wed, 27 Aug 2008 18:04:37 GMT

Short sale = good for the seller (last chance)
short sale = good for the bank
short sale = horror for the buyer
So, to which group do you belong?

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Lel — Wed, 27 Aug 2008 19:25:06 GMT

@Anonymous wrote:
Short sale = good for the seller (last chance)
short sale = good for the bank
short sale = horror for the buyer
So, to which group do you belong?

That's an interesting way to look at things. I consider short sales to be bad for everyone.

Bad for the sellers - they lose money. Sometimes a lot. And it shows up as foreclosures on their credit reports and severely limits their ability to buy homes in the near future.

Bad for the banks - they lose money. If this happens too much, they default on their obligations and fail, a la Bear Stearns.

Bad for investors - they lose money.

Bad for retirees - the fixed income recipients whose annuities and 401(k)s were invested in REITs have a drop in income.

Bad for buyers - they don't know whether their offers will be accepted....BUT if they have patience, they can come away with a good deal on a new home.

So if anything, the buyers have a greater likelihood of having a good outcome from a short sale. It comes with a lot of frustration, though.

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Lel — Wed, 27 Aug 2008 23:02:30 GMT

I guess my previous post is not quite accurate, as Bear Stearns didn't fall because they made and sold mortgages, but rather because they invested in mortgage-backed securities and other real estate market derivatives that put them at risk. IndyMac would have been a better example.

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Wed, 10 Sep 2008 18:49:12 GMT

Well the bank accepted our offer and we close in two weeks. A long wait but worth it I guess.

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Thu, 11 Sep 2008 00:26:39 GMT

I never understand why people say that a bank is better of foreclosing rather than taking a short sale. After they foreclose, they own the property. Since banks are not here to purchase and own property, they will need to sell it. From my experience, the longer you wait, the more the price continues to decline.

To me, rejecting all short sale offers and letting the property go to foreclosure is a bad, and possibly horrible, business decision.

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Thu, 11 Sep 2008 00:32:40 GMT

Congrats!

kraig wrote:
Well the bank accepted our offer and we close in two weeks. A long wait but worth it I guess.

Re: AAAAAAAAAAAAHHHHHHHH Short Sale Madness!!!!!!

Anonymous — Thu, 11 Sep 2008 03:50:25 GMT

Short sales are bad when there are multiple banks becuase in a short sale, the 1st lender get a full share until they are paid off then the other lenders get their piece of the pie (usually nothing). In a foreclosure auction, all parties are paid according to how much they owned of the debt. SO, if multiple lenders have to agree to the deal, the 2nd and 3rd lender are usually better off with an auction than a short sale. That doesn't mean that they will say no, but they have to weigh whehter they want to just write it off, or fight for a few pennies on the dollar.