topic Re: "our" house is going up for auction in Mortgage Loans

"our" house is going up for auction

Booner72 — Fri, 01 Jul 2011 20:36:48 GMT

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.

Re: "our" house is going up for auction

p- — Fri, 01 Jul 2011 23:32:33 GMT

@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.

Re: "our" house is going up for auction

Booner72 — Sat, 02 Jul 2011 00:26:03 GMT

-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?

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. ????

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.

Re: "our" house is going up for auction

p- — Sat, 02 Jul 2011 18:10:51 GMT

@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!

Re: "our" house is going up for auction

Anonymous — Sun, 03 Jul 2011 01:46:08 GMT

Booner72, what state do u live in? If you live in Illinois I may be able to assist u.

Re: "our" house is going up for auction

Booner72 — Sun, 03 Jul 2011 01:53:40 GMT

Not illinois = thanks

Re: "our" house is going up for auction

Anonymous — Sun, 03 Jul 2011 02:07:49 GMT

I work in the industry. I strongly suggest calling the atty representing the bank and asking for status of the sale and if they are aware of a possible short sale. Also, I have seen cases where the sale was held and later vacated to allow the short sale.

Re: "our" house is going up for auction

Booner72 — Sun, 03 Jul 2011 02:24:09 GMT

Ok. How do I find out who that is? Is that the infamous "Negotiator?" I totally trust this realtor's experience in doing short sales. BUT he is working for the seller and showed us the house, so ended up being our realtor, too. Bad communication bc he is busy as heCC. I'm lucky to get a reply from his pseudo-secretary wife. The person who gives me the most info is my LO (Who I was referred to by said realtor). When I emailed him in a panic about this yesterday he emailed back "We're on top of it."

Re: "our" house is going up for auction

Anonymous — Sun, 03 Jul 2011 02:32:14 GMT

County records should be public record. In my state we record a lid pendens it should give u the atty info and case number.

Re: "our" house is going up for auction

Booner72 — Fri, 08 Jul 2011 00:40:23 GMT

We heard today that the appraisal came back and "they approved it 100%" but now "an investor" has to sign off and "submit a letter".

What does all of that mean?

And also, will they loan me an extrak 8K to pay the truck off? My husband says he has heard that people can get this for their first mortgage, not as a HELOC.

Thanks,

Re: "our" house is going up for auction

Booner72 — Thu, 21 Jul 2011 02:13:52 GMT

We finally heard back from the "investor" today. We offered 105K on a house advertised at 110K. The offer came back at 145K. I was seriously pissed off at my realtor for even advertising at 110. We NEVER would have even gone to see the place if we thought it was 145. The whole reason I got into this mess suddenly was because it was such an amazing deal. (BTW, it sold for 286K in 2007).

Tomorrow we are countering back with 115. I said I would be willing to pay 122,900 if we could just get this settled and move on with things. The realtor said no way to that, because they (realtor and his wife as a team) don't want me to overpay, that it was sitting for almost a year without a bite until it went down to 110.

I guess the issue is the bank is saying it's a "stick built" house, and my side is saying "So what! It's a chalet style which lowers the useable square footage, and here are the comparables."

I thought for one, that you couldn't counter-offer short sales, that what the bank came back with was either do it or don't.

So here we go. Getting the score results today was one of my proudest moments, but then my joy was dashed when I got the news about the price!

My LO (who I totally trust) advises me to just hang on one more week, that going out house shopping now will only confuse us and make me even more crazy.

I'd love to hear other stories about short-sale counterofferings. Is that getting more common now? Or is this a done deal and I need to move on. PLUS, it is still scheduled for auction 8/17.

Re: "our" house is going up for auction

Booner72 — Thu, 21 Jul 2011 18:26:28 GMT

I just passed automated underwriting with flying colors. I can't even believe this is happening. This is such a dream come true. Thanks everybody!! If it wasn't for this forum I wouldn't be here today. I feel like a whole new person now that I don't have the world's worst credit! A lot of shame is gone.

Re: "our" house is going up for auction

Booner72 — Fri, 22 Jul 2011 01:46:16 GMT

Wow - this was such an amazing day. Signed all loan documents, ordered FHA #, tax transcripts, the whole deal. LO says she won't even have to verify rent! (Good because I don't want landlord to know we are moving, he'd freak out and try to get it rented right away and we'd be s.o.l if this falls apart).

LO made me promise to wait until Tuesday to see what the final offer will be. (I'm so furious at the realtor that I am thinking of walking away just out of spite!!) If we can come to an agreement on price by early next week, we will order a rush appraisal. Decided that DH and I will do our own inspection by going into the house and checking electrical/heating/plumbing etc but pay to have the septic inspected and drained. She says we will do a "table funding" so that the morning of closing is the same day as funding. It's all about beating the auction date.

Contemplating looking at other houses on Saturday in case this falls apart, but apparently there is "low inventory" out there. A big auction (not just our house) is coming up in August and then, word on the street is we will have lots of choices.

We love this house so much. It would be nice to get in before school starts. Having property w/ mountain views - holy moses. Thinking we will be in our new house in less than a month is beyond my wildest dreams.

Everything has fallen right into place, finding the house was easy, the loan process is going far more smoothly than I could ever have hoped. I sure hated the waiting but it's looking like it was all worth it.

Re: "our" house is going up for auction

Anonymous — Fri, 22 Jul 2011 13:31:15 GMT

Please please please get a real inspection. PLEASE. I wish I had done a more thorough inspection, I would have definitely had more price negotiating room. Long story, but I really think it's a good idea to get plumbing and electrical fully checked out beyond a basic inspection.

Re: "our" house is going up for auction

Booner72 — Fri, 22 Jul 2011 17:26:45 GMT

Mauve - I know, it's a big decision. We are going to go top to bottom, under the house, have the water on, check everything. If there are any red flags, then we call in the "specialist" to see what they think. We've also looked outside the house top to bottom three different times. There is nothing going on outside. It's in really great condition. It was really maintained.

In addition to MYFICO Forum addiction, I've also been HGTV addicted lately. I see time and time again the inspector sees something, but then just recommends a "specialist" for whatever it is. My husband is a great handyman and can fix anything. He works in construction so he knows when something looks right or wrong.

I would rather spend the money on the septic and a specilialist (Plumber/electrician etc) if we need. The realtor will also be there (unfortunately) when we do our inspection, and he will know stuff, too.

Re: "our" house is going up for auction

sugarmagnolia23 — Fri, 22 Jul 2011 23:48:16 GMT

Congratulations!!!!!!!!!!!!!!!!!!

Re: "our" house is going up for auction

Booner72 — Sat, 23 Jul 2011 03:13:41 GMT

Good Friday Evening Readers -- I'm hoping if anyone has experience they will either reply or send me a PM. I don't understand why people are "shy" to post their stories. I guess fear of public humiliation? If so, I win the humilation contest. Anyway - I need help here.

Okay here's the deal. My LO and realtors are tight. I've been bugging LO to get things going and on Wednesday she actually had me come in her office, ran my scores, I qualified, etc. But we still don't know the final asking price so she says we can't do anything else until we know.

Thursday morning she scans me 47 pages of loan documents all completed w/ "our" houses address, a purchase price of 120, ordered FHA #, tax transcripts, verified employment, put me through automated underwriting and everything. She told me she "has a feeling" that the bank will come back at 120.

I didn't think anything of it until tonight. I've been reading around on how sneaky these people are. I'm thinking the realtors ALREADY KNOW that the bank will counteroffer at 120. I'm thinking they told LO to go ahead and get everything going so we can beat the auction date. LO has been saying this whole time she can't order FHA # w/o an approved offer, can't do this/can't do that. But now all of a sudden she's doing it all? She had me bring in everything. The whole file is ready to go to UW except the Appraisal. To top it all off, she tells me that the LO's manager told her they would pay the extra money to get a "rush appraisal." She even makes me "promise" to wait until Tuesday before I yelled at the realtor for F'ing us over.

What do you guys think? Am I going to be the last one to know? Why wouldn't they just tell me it was 120, take it or leave it? Why would they counter back with 115 if they know the bank's bottom line is 120? Don't you think the LO already knows? Do you think she would have done all of this if she didn't?

I don't know much, but I can smell it when something fishy is going on.

Or maybe I'm totally off. I'll be more than happy to pay 120 for this house. Easily can do it. But I just can't wait any longer!

Re: "our" house is going up for auction

Booner72 — Tue, 26 Jul 2011 17:19:47 GMT

The STUPID BANK countered now 141. Like that helps any. I sent an email to the realtor saying that the max we would/could pay is 125 because of DTI.

(not true but who cares).

Also stipulated that we want to know by the 28th with an accepted offer or we are walking away.

CRUNCH TIME!

Re: "our" house is going up for auction

Booner72 — Wed, 27 Jul 2011 03:37:04 GMT

In case anyone cares, We decided to back out. Hated the realtor for one, they stole the wood trailer for 2, and refuse to pay more than what was the listed price, which was 110. It will be interesting to see what the bank comes back w on Thursday, But I guess I will never know because I already texted the realtor that we are done.

End of thread. Thanks!

Re: "our" house is going up for auction

sugarmagnolia23 — Wed, 27 Jul 2011 16:56:09 GMT

Its always best to follow your instincts! At least now you know you can qualify, so you can start the process with more confidence the next time. Good luck finding a new one. You mentioned that several will be available in August- so maybe its for the best!