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Home Buying on Pins & Needles!

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Bret

Bret

Yoda
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Sorry this'll be kind of long, but I just need to vent a little,

As some of you know I’ve been hunting & trying to purchase a home of my own for a while now. Rather daunting task as this would be solely my home & My HOME alone, as I am doing this without a spouse or any significant other involved.

I kind of figured that it’d be easy with this supposedly being a “Buyer’s Market” because of the drop in housing. However as has been discussed here in the past – there is a large number of homes that are what is commonly called “short sales” (oxymoron - if'n there ever was one) and they have nothing to do with a "speedy" selling process.

So while houses might be cheaper than they where a short time back “short sales” in the area I'm looking at are accounting for about 75% or better of the listings in the area where I want to live. These are usually homes that are either in foreclosure, about to or already Bank owned. Consequently it doesn’t matter if the seller accepts your offer, the Bank/Lender has the final word and this process could take weeks to fumble through. In fact I’ve had one offer on the table for over “SIX WEEKS” already and no word from the bank yet.

Moving forward – I’ve been keeping my eye on the market watching for any new listings, hoping to catch a regular listing. But these are far & few and they don’t last long when they do show up, as other buyers gobble them up or out bid me faster than I can react. Part of the problem is (besides not being quick enough on the draw) because my job has me out’a town so much during the week. See this is where a significant other would come in handy. But I’m muddling through - sucking it up and refusing to let it impede me in my search.

Anyway I’m trying to curve my enthusiasm for fear of being let down again, but last week I made an offer for another home that was also considered a short sale. However this one is a little different situation. Like the first I made an offer & the owners have accepted & now we’re waiting (UGH!) for the Bank to give their blessing. But here’s where this situation is different – technically, yes – this house is considered a “Short Sale” but the owners are actually Active Duty Military (Marines) and have been given a new orders relocating them out of the state. They don’t owe more than their asking price and are they not as best I can tell in dire straits financially as both are Officers (Maj. & Lt. Col I think). So foreclosure is not on the horizon for them unless the house lingers too long without being sold. Yes they are losing money in the deal – as they weren’t getting any offers they recently lowered the asking price about $70K from what they wanted back in November 07, and that just happens to be about 200K less than what they paid for the home a few years ago. But again this is not a true foreclosure and the sellers realtor has said that the Bank always tries to help military personnel in these situations.

So while short sales are normally anything but – I’m hoping that the Bank will see fit to expedite things for both parties & allow this family to move on and let me take their wonderful home.

Oh well - Rant over thanks for letting me get that out'a my system.
 
Wish I had some words of wisdom, but all I can do is offer encouragement and say "hang in there." Hopefully things will shake out for you soon.

Basil
 
Bret - you're out of town a lot. Have you considered using a "buyer's representative"?

The rep doesn't (or shouldn't) work for a specific realty company. The rep works for you. Usual duties are things like pre-screening listings for you, actually visiting the properties, noting to you what to "watch out for", etc.

If you already have the purchasing money (or the approved financing), the rep does most of the leg work while you're unavailable. It sounds like that would at least save you a *lot* of wasted time chasing things down in the few days when you're home.

By the way, not exactly sure what "short sale" means in your examples. You mean homes in foreclosure or default?

Tom
 
Banks take their own sweet time when there's an offer on the table. My own theory is that they are hoping that a better one will come along and they can have a bidding war to get more of their money back.

In reality, at least as one bank attorney was describing the process to me, your offer has to go through a whole slew of different departments that have no incentive to expedite anything.

If you are in the happy position of being able to make a cash offer, you can make it contingent on a timely response. That oft times livens them up. If you need a mortgage though then you are at their mercy.
 
I partially agree...here's what works when purchasing rental property: once you're prequalified & have your loan amount approved, always put a time limit on any offer you make - one that fits your schedule, not theirs.....& sweeten it with a nice big earnest money check - say, half the price.
 
Bret,

We were looking at a vacation home foreclosure a few months back, but the listing agent was worse than the bank. The bank accepted the offer, but we backed out after the inspection. The listing agent STILL has not returned the deposit check after more than a month has passed from the official termination of agreement.

A realtor friend has confirmed that the foreclosure sales never run quickly or smoothly. All I can say is be patient. If it is the proper deal that is supposed to happen for you, then it will. If it falls through then maybe your guardian angel was protecting your interests.

Good luck and hang in there.
 
<div class="ubbcode-block"><div class="ubbcode-header">Quote:]The listing agent STILL has not returned the deposit check after more than a month has passed from the official termination of agreement.[/QUOTE]
That's an easy one to solve...have your bank cancel the check & send the real estate broker - not the listing agent - the bill for the $30 it cost to do so...then, every 30 days send them a bill with a 10% late fee added to the $30.....after 90 days or so, drop by your friend at the courthouse & see what you options are - you'll be surprised....but you'll get the real estate broker's attention when his firm's (remember: its not the listing agent's firm) credit rating goes down the tube!


[Can you tell that I really don't like it when banks, real estate agents, & mortgage companies think they're doing us a favor? We're the ones keeping them in business for gosh sake! & they need to relearn that lesson from time to time!]
 
Sorry to hear of your woes, Bret. Buying a house is always a complicated process -- I hope to not have to do it again, maybe ever. We bought our house 2 years ago. It was a standard deal, financing pre-approved, and it was still a hassle down to the last minute. I can only imagine that with the current climate it would be even more difficult.

Hang in there. That right house is out there for you.
 
Don't forget, if anyone needs assistance in finding someone good to work on your behalf in sorting out the good from the bad from the ugly I am only a toll-free call away. There's no charge, no hidden fees, and you get me riding shotgun in addition.

PM me if you want to just talk about the process.

Anyhoo, keep in mind that with a foreclosure/short sale the agent's commission is usually cut drastically, so they are not going to make as much money as with a regular sale. For some agents, that is a big disincentive. Others, however, love them because they are able to do a lot of transactions, and make up the shortfall with the volume. You need to find the right agent, but there are a lot of crooks operating at that end of the market. You gotta be careful!
 
Thanks everyone, couple of things I need to add:

First of all, I’m pre-approved and significantly more than the asking price. I just don’t feel right about burdening myself with a tight financial situation. Something that was a major contributing factor in the current housing market mess we’re in today. Besides I’d like to eat something besides beans & rice and still be able to enjoy my hobbies.

That said I’ve never used my GI Bill to purchase a home. Last home I had in my name was when I was married to my ex-wife back in Denver and we assumed a loan on a HUD back in the late 80’s that someone had walked out of. So the GI Bill has gone un-used thus far. That said – I even went & bid slightly OVER the asking price to help defray the seller having to eat the 10-12k in closing costs that the VA loan requires the seller to pay.

As for a Realtor? Thanks everyone. Oh & Steve, I may just take you up on some free advice or at least help clarify any unanswered questions or concerns I may have. However I do have a realtor that is helping me and I know she’s working for my best interests in mind because well she’s family (my mom in fact) and while she hasn’t been doing this as long as some her partner has over 30 years in the business. Only problem is she lives about an hour away from where the homes are I’m looking at so between the two of us it can be a bit tough logistically & where burning up the fax lines.

An interesting note on the sellers & their listing agent. There’s a major Marine Corps connection going on there. As I said before the sellers are Marines too and I found out that so is their listing agent/realtor. I know that I shouldn’t let this sway me (not sure how it would) – but I felt pretty good about their relationship and got the distinct impression that this lady was looking out for them while at the same time seems to be extremely forthcoming. Sure she’s looking out for their best interests – but I noticed a distinct change in the mood of things and an ease in tensions when this was disclosed.

Again I’m getting the distinct impression that the Bank will be the only hold up.

Again thanks everyone for the kind words.
 
Bret, you definitely don't need a buyers' agent if your realtor is your mnother! I had no idea........ Send me a PM with her contact info, maybe I can steer some business her way?

If I can assist you in any way give me a holler. Always happy to help.
 
Hope things work out well for you, Bret. I'm in the home buying mode too; the wife and I have decided to go our separate ways. Not a unfriendly split; we both realized we're still different in many ways, but we're still friends, and she even offered to help decorate the new place. I found a place I like, got the pre-approval, and making an offer right now, and hoping there aren't too many surprises. Good luck!
 
Bret, repeat after me, "Banks are not your friend, banks are not your friend."


You can substitute instead of "banks" words like "realtors" or even "building inspectors" or even "dentists" if you like.
 
How true, how true!!

Banks pick yer pockets and rob poor folks blind.

$2. ATM fee to take $20. of their own cash out. I see
poor folks all the time taking out $20.

That's robbery.

d
 
$2 - that's cheap.
Chase charges $3 here.
I guess they have to finance all those sub prime loans the Fed is letting them buy somehow...
 
hehehehe....my bank reimburses me for charges at other banks' machines & there's no charge to use their machines.....welcome to north Alabama, guys!
 
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