Don’t consider buying a short sale home if you want to move fast. Short Sale is an oxymoron like military intelligence. My personal saga for an Anna,TX home for sale started 10-21-11. That’s right, October of 2011 and in a few days it will SEVEN MONTHS later.
It all started with the home being priced for multiple bids. Of the five bids, ours was the winning bid and so it was off to the races. Fortunately I am a Van Alstyne Realtor as well as the investor so I knew the process would be full of land mines and delays. However, I never dreamed I would be dealing with a seven month plus ordeal. Just imagine if you were the buyer and this was your dream home turned nightmare.
We have completed 3 amendments in this time period giving the bank more time to consent to the sale. It dragged on so long that the property went to the courthouse steps for foreclosure last month. For some reason a light bulb must have turned on in the bowels of the bank so it was pulled at the last-minute. You see the short sale folks and the foreclosure folks at the bank only wink at each during lunch. It’s very apparent that they never really talk to each other.
At this point I don’t really expect it to ever close. If you were my client, I would have advised you to move on months ago. I am staying with this travesty because it’s a nice house and I want to see how it all finally plays out. I would not be surprised if it ends up going to the courthouse again and the bank actually buys it back for more than we have offered.
You remember that mortgage insurance you paid for to protect the bank? Sooner of later, they will file a claim against the mortgage insurance and use the money to invest in something really smart like derivatives. Just ask Chase how that works.
Think about what has happened during the last five months…besides nothing.
- The owner has been in limbo for over five months wondering if his credit will ever be good again
- Prices have decreased somewhat since the offer was made
- April has come and gone so now 2011 tax returns will be required for financing
- Interest rates have remained low but could have easily gone the other way
- The home systems have been rotting for 5 months – (water heater, HVAC)
- No real maintenance – no foundation watering
- The bank has had to pay for mowing but the fence has fell apart into the neighbor’s yard.
The current extension expires at the end of the month. Stay tuned for updates on one long short sale! There is a lot more I could say but I think you can read between the lines. If you would like to buy or sell a home give me a call but don’t expect me to be excited if it’s a short sale. There are too many other homes that you can actually buy and sell without going through this pain.
Wait until it becomes a HUD home or Fannie Mae foreclosure. Then the process is easy for owner occupants and the home will be disposed of after a few days vs. months. Film at 11.
