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Short Sale...
We are back in the buying game. Just lost a house we were interested in. =( No we are far into the process of a short sale. But, I'm unsure if things will work out. This is what's going on.
This is a Fannie Mae loan but the buyers purchased the home thorough a credit union, so there are two banks involved.
Started out simple enough. Great deal on the house, $370,000. That is FMV (fair market value) We offered 165 and credit union countered 370. We accepted.
THEN... Fannie Mae came back and said the house is worth $400,000 and then THEY countered to that amount of 400k. Which its not the correct value, the credit union did two separate appraisals, one for first mortgage and one for second. My agent and buyer agent agree FMV is 370k. Fannie Mae is the only one who disagrees.
At this point, sellers agent sent in comparable properties to Fannie Mae in hopes they simply made an error and can redo their "appraisal". They don't actually do appraisals, they only run a computer program which gives a FMV amount... this computer software is known to be very high and inaccurate. Lucky me.
My agent said it may help if we pay for a appraisal for $450, but I'm not wanting to do that until I KNOW we are getting the house.
Anyways, I'm just wondering if anyone has had experience at all with ANY of this? TIA
Re: Short Sale...
From everything I keep reading it seems like the big issue is getting everyone to agree on a price. DH and I are interested in a SS too...
I did some online research about SSs and it just appears that the banks can hold up the whole process.
Here's a question for everybody. Is it more beneficial for a bank financially to do a short sale on a property or to let it go all the way into foreclosure? Maybe I'm missing something, but I would think a SS would mean they could have a better chance of getting more money out of it than if they waited for a foreclosure. So, why do they dig in their heels?
Yes they get more from a SS than a foreclosure. At least that's what I see from everything I'm reading also. I can't imagine why they wouldn't be happy to get more rather than less.
My agent says there is no logic in the world of banks, and that if we are going to deal with this process we need to understand that logic will not be a part of the transaction
Did you ever have success with a SS?
No.
After 5 months of going back and forth we called it quits. We looked at a couple other ones but decided to build. They gave us a better deal then any SS would!
Our first offer was for a short sale with one bank. We put the offer in and did hear anything for MONTHS. Our agent couldn't find out anything and they were giving her the run around. After two or three months, we started looking for other houses with the offer still in.... we eventually pulled it after we were about to close on another property... we never heard a thing... ever. Nothing ever happened with that property last time I checked.
My agent told us that two banks were a very difficult situation and they rarely go through since you're trying to please multiple people.... hope you have a better expierence than we did. Good luck!