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| 3 months of waiting for nothing | |
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| Tweet Topic Started: Jul 30 2010, 08:18 PM (313 Views) | |
| Horace | Jul 30 2010, 08:18 PM Post #1 |
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HOLY CARP!!!
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The home i had a bid on is a short sale as is pretty much everything these days. Short sale offers have something called a "short sale addendum" which specifies a time limit for the bank to make their decision. In my case, it was 3 months - which expired today at 5 pm. The selling agent has been in contact with my agent telling us how things are progressing, dropping little hints that it is underway and close to fruition. By some cosmic coincidence, today at 5 when my agent called the listing agent to see what was up, we're told that the NEW development is that the selling bank wants to participate in HAFA, which is a taxpayer funded program designed to get banks to shi*t or get off the pot with pre-foreclosure properties (short sales). It motivates the bank and the property owner to sell the place by paying them to do so. The main problem with short sales is that the decision makers on the selling side are not motivated to sell. There are two sides to the selling side, the owners and the bank that holds the mortage. The sellers aren't motivated to sell because they can stay there without paying their mortgage. The bank isn't motivated to sell because "the bank" really means some pencil pusher behind a desk who is motivated only to keep his job rather than do anything. So the property sits. I have seen one example of a HAFA property in this neighborhood. It had been on the market for 320k about 3 months ago, before they enrolled in HAFA. Then they decided to go HAFA and the listing went dormant, till a few days ago they came back on the market. The asking price now is the "pre-approved HAFA price", a price which, if offered by a buyer, will probably close within a few short weeks (remarkable for a short sale). The price? 396k. For a property which by any reasonable comp is not worth more than 320k and which will not appraise for more than 320k. When pencil-pushers at a bank are asked to put a price tag on a home at which they're legally obligated to sell it, guess what sort of price they'll come up with? Turns out, the ridiculous kind. Who'da thunk. Anyway, no big deal for me. I was going to pull out of the deal anyway, since I think home prices are in for a double dip especially in this foreclosure-rich neighborhood which was newly built and sold at the bubble peak. But it is interesting to watch banks implode because the motivations of the institution are at odds with the motivations of its employees. |
| As a good person, I implore you to do as I, a good person, do. Be good. Do NOT be bad. If you see bad, end bad. End it in yourself, and end it in others. By any means necessary, the good must conquer the bad. Good people know this. Do you know this? Are you good? | |
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| Axtremus | Jul 30 2010, 08:34 PM Post #2 |
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HOLY CARP!!!
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It's probably for the better anyway, Horace. Good luck with your next bid. |
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| Horace | Jul 30 2010, 08:47 PM Post #3 |
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HOLY CARP!!!
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Thanks, Ax. I agree it's for the better. |
| As a good person, I implore you to do as I, a good person, do. Be good. Do NOT be bad. If you see bad, end bad. End it in yourself, and end it in others. By any means necessary, the good must conquer the bad. Good people know this. Do you know this? Are you good? | |
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| Mikhailoh | Jul 31 2010, 05:40 AM Post #4 |
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If you want trouble, find yourself a redhead
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Chalk it up to another learning experience. We all get really smart, then we leave this mortal coil. |
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Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball | |
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| Phlebas | Jul 31 2010, 06:07 AM Post #5 |
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Bull-Carp
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The problem with this market - wherever you are, almost - is the rules seem to change daily. Best of luck on getting a house at the right price. |
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Random FML: Today, I was fired by my boss in front of my coworkers. It would have been nice if I could have left the building before they started celebrating. FML The founding of the bulk of the world's nation states post 1914 is based on self-defined nationalisms. The bulk of those national movements involve territory that was ethnically mixed. The foundation of many of those nation states involved population movements in the aftermath. When the only one that is repeatedly held up as unjust and unjustifiable is the Zionist project, the term anti-semitism may very well be appropriate. - P*D | |
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| apple | Jul 31 2010, 06:47 AM Post #6 |
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one of the angels
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good luck Horace.. what a process |
| it behooves me to behold | |
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| Horace | Jul 31 2010, 10:58 AM Post #7 |
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HOLY CARP!!!
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Thanks folks. According to some communications as of this morning with the selling agent, there is still a chance that my purchase will go through. As of 5 pm yesterday, I reduced my offer price and that new offer was immediately signed by the seller. Now the selling agent needs to convince the bank that it is in its best interest to just approve it. But she's had 3 months to do so on a better offer and was unsuccessful. So I'm not very optimistic. The short sale addendum time limit for the new offer is 6 weeks. I have nothing better to do than wait for prices to fall anyway so I'm in no hurry. The bank can take its time for all i care. |
| As a good person, I implore you to do as I, a good person, do. Be good. Do NOT be bad. If you see bad, end bad. End it in yourself, and end it in others. By any means necessary, the good must conquer the bad. Good people know this. Do you know this? Are you good? | |
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| apple | Jul 31 2010, 10:59 AM Post #8 |
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one of the angels
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maybe the banks will lose this round. hope so |
| it behooves me to behold | |
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5:02 PM Jul 10