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Claire
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Username: Claire

Post Number: 13
Registered: 01-2009
Posted on Friday, March 20, 2009 - 6:22 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I like this site because there are many view points...

Can real estate agents legally play games with short sale offers?

I place an offer on a home in January. I knew it would take a couple of weeks. I offered 3% less than the asking price and they pay closing costs.

I didn't hear anything for a month. My agent called the sellers agent to find out the status. She indicated that the bank wanted to see the other offers she had. She indicated that she had one that was made before mind and one that she had received after mine.

This did not sit well with me. Why was she still holding on to one submitted before mine? How did the bank know that there were other offers? Shouldn't offers be submitted when they are received? After waiting almost 3 months, I withdrew my offer. This seems like something wasn't right.

Today, I was searching for homes on the internet. Another short sale caught my eye. I called the listing agent to inquire. He said if you put your bid through me, i can guarantee that you will get the home. I said "how is that?" He said "I know what the bank will accept and I can tell you how much to offer". "If you go through another agent they don't know and I receive the offers"

This seems illegal. Then I immediately thought about the home I tried to purchase and realize that is what was happening to me.

Is this illegal? What action can I take against the sellers agent of the house that I made an offer on?
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Ccbatson
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Username: Ccbatson

Post Number: 19556
Registered: 11-2006
Posted on Friday, March 20, 2009 - 6:23 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Not legally they can't
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Claire
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Username: Claire

Post Number: 14
Registered: 01-2009
Posted on Friday, March 20, 2009 - 7:12 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

what action should I take?
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Lodgedodger
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Username: Lodgedodger

Post Number: 1701
Registered: 05-2008
Posted on Friday, March 20, 2009 - 8:14 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

>>Today, I was searching for homes on the internet. Another short sale caught my eye. I called the listing agent to inquire. He said if you put your bid through me, i can guarantee that you will get the home. I said "how is that?" He said "I know what the bank will accept and I can tell you how much to offer". "If you go through another agent they don't know and I receive the offers"<<

I'm willing to bet this person was bs'ing you to get your business. Don't give this realtor your business.

Short sales sometimes take a long time to close. The bank will try to make as much on the home that is possible. They're really not on your time line. Not knowing you, I cannot say anything about your bid, but many have made ridiculously low offers.
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Jams
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Username: Jams

Post Number: 7919
Registered: 10-2003
Posted on Friday, March 20, 2009 - 8:34 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

My best advise is to find a realtor, that is recommended and willing to accept the lower commision of a short sale or foreclosure.

I bought a house last year, we placed a bid on Tuesday, rejected by the bank at noon on Friday, countered at 2pm, bid accepted at 4pm the same day.

1 month to closing.

My biggest bitch was drawing a certified check from the funds deposited in the same bank we purchased the home from.
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Claire
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Username: Claire

Post Number: 15
Registered: 01-2009
Posted on Saturday, March 21, 2009 - 12:11 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

So,it dosen't have to take months as we are told it does?
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Lodgedodger
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Username: Lodgedodger

Post Number: 1702
Registered: 05-2008
Posted on Saturday, March 21, 2009 - 7:24 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It doesn't have to, but if the bank wants a better offer, it just might.
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Blueidone
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Username: Blueidone

Post Number: 518
Registered: 03-2007
Posted on Saturday, March 21, 2009 - 9:52 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The house we used to own is currently up for short sale. The bank our mortgage was with has been absolutely terrible to work with. It took them 4 months to approve selling the home through short sale. Now there has been a cash offer sitting on the table for over a month. The mortgage company wants more than the offer so they are holding out. But this is the only serious offer received since August of last year. The comps in the area show that the current offer is more than fair, but because the FHA appraiser says it is worth more, they don't want to accept it.

Meanwhile...in order to keep the short sale agreement in place, we have to keep paying utilities and keep the house secure. But if we walk away and don't do this, they will cancel the short sale agreement and HUD will not pay off on their mortgage guarantee, and we will be stuck owing the balance between what was owed and what it eventually sells for.

Talk about being stuck between a rock and a hard place!
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Frank_c
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Username: Frank_c

Post Number: 1140
Registered: 10-2003
Posted on Saturday, March 21, 2009 - 4:47 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Doubt your buyer is still around!
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Rooms222
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Username: Rooms222

Post Number: 198
Registered: 04-2005
Posted on Saturday, March 21, 2009 - 4:52 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Only about 1 in 20 short sales go through. I had the same thing happen with a short sale that Blue is talking about. My offer was open and I even raised it for six months. It was never fully accepted, and they kept it open for higher offers the whole time. I was offering over $75 thousand. They finally foreclosed on the seller and it sold six months later for under $40 thousand (still in same condition). Sometimes it seems they want to lead the seller on so he keeps making the property tax/mortgage payments for as long as possible.....
I would focus on foreclosures over short sales. They can close quickly...
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Claire
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Username: Claire

Post Number: 16
Registered: 01-2009
Posted on Saturday, March 21, 2009 - 6:16 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I have looked at so many foreclosures. They are in horrible condition. I am looking at VA approval. Many of the homes would not be approved for purchase by VA.

Then there are the homes that are so overpriced. Looking for a home in this market is much more difficult than I thought.

I am looking for a home built in the 80's (25 years or so), 3-4 bedrooms, finished basement, deck for less than 250,000. Prefer northwest suburbs. Am I looking for the impossible or can this be found?
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Rooms222
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Username: Rooms222

Post Number: 201
Registered: 04-2005
Posted on Saturday, March 21, 2009 - 7:20 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Realtor.com and the realestateone.com search by map can help a lot.....

All the houses below have a deck, basement, are less than 20 years old, have 3 or more bedrooms, 2 or more baths, and are bigger than 1600 square feet......

$114k Waterford http://www.realtor.com/realest ateandhomes-detail/2671-Parkvi ew-Ct_Waterford-Twp_MI_48329_1 107358996

$114k Livonia http://www.realtor.com/realest ateandhomes-detail/20340-Flora l-St_Livonia_MI_48152_10835268 50

$122k Canton http://www.realtor.com/realest ateandhomes-detail/45300-Gedde s-Rd_Canton-Twp_MI_48188_11077 91643

$139 K Waterford http://www.realtor.com/realest ateandhomes-detail/1389-Glenvi ew-Dr_Waterford-Twp_MI_48327_1 106063555

$149k Dearborn http://www.realtor.com/realest ateandhomes-detail/7700-Steadm an-St_Dearborn_MI_48126_110644 7507

$150k Bloomfield Twp http://www.realtor.com/realest ateandhomes-detail/229-Highlan d-Ave_Bloomfield-Twp_MI_48302_ 1106856535

$158k Farmington Hills http://www.realtor.com/realest ateandhomes-detail/22990-Elmgr ove-St_Farmington-Hills_MI_483 36_1107758975

$160k Birmingham http://www.realtor.com/realest ateandhomes-detail/1274-E-Linc oln-St_Birmingham_MI_48009_110 5870055

$165k Rochester Hills http://www.realtor.com/realest ateandhomes-detail/Rochester-H ills_MI_48309_1107168368

$165k West Bloomfield http://www.realtor.com/realest ateandhomes-detail/4364-Ray-Te rrace_West-Bloomfield-Twp_MI_4 8323_1104316360
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Ccbatson
Member
Username: Ccbatson

Post Number: 19563
Registered: 11-2006
Posted on Saturday, March 21, 2009 - 8:51 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It is amazing how fast properties degrade when unattended. Looters take scrap out, pipes burst, etc. Within a few months a decent place can get to the point that it will take six figures to make it livable again.
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Blueidone
Member
Username: Blueidone

Post Number: 519
Registered: 03-2007
Posted on Sunday, March 22, 2009 - 9:30 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Rooms222: Our home is in the last month of the redemption period. The mortgage company took it back on 10-31-08.

In case anyone is interested in a larger home in Roseville (Fraser School District): 4-5 bedrooms, 3 full baths, 2 laundry rooms, ceramic tile kitchen/dining, finished basement, new carpet in livingroom, hardwood floors in 2 bedrooms, florida room in back, 2.5 car garage. Do a search for a 4 BR in Roseville...it's the only house that comes up.
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Ccbatson
Member
Username: Ccbatson

Post Number: 19758
Registered: 11-2006
Posted on Sunday, March 29, 2009 - 4:55 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Out of curiosity, is the person defaulting elligible to buy it back from the bank at a discount? If so, that seems shifty.

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