REO getting real in 92116

[DCRogers]

http://redfin.com/stingray/do/listings-search#search_location=5049%20hawley%2C%2092116

House sold for $485,000 in May of 2005… foreclosed, and now it’s a REO with a price of $279,000. That’s a 43% cut!

Now, it’s a TINY house, and likely still overpriced (did I mention tiny?), but it’s nice to see some bank getting real.

Oh, and Zillow says it’s worth… (wait for it…)

$515,000.

[kev374]

$349/sqft seems really expensive!! Here in South OC now there are many properties listed at $275/sqft

[Eugene]

Year built: 1913?

[Eugene]

Year built: 1913?

[Eugene]

Year built: 1913?

[Eugene]

Year built: 1913?

[Eugene]

Year built: 1913?

[kev374]

$349/sqft seems really expensive!! Here in South OC now there are many properties listed at $275/sqft

[kev374]

$349/sqft seems really expensive!! Here in South OC now there are many properties listed at $275/sqft

[kev374]

$349/sqft seems really expensive!! Here in South OC now there are many properties listed at $275/sqft

[kev374]

$349/sqft seems really expensive!! Here in South OC now there are many properties listed at $275/sqft

[4plexowner]

Interesting listing – decent location north of Adams for less than $300K – but very tiny and the 1913 build date is probably accurate – listing says ‘As Is’ and ‘future tear down’ which probably means the house is basically a scraper (assume wood issues and outdated electrical and plumbing for starters – wouldn’t be surprised to find foundation issues as well) – the deep, narrow lot limits the options for new construction -‘As Is’ condition of the house most likely eliminates conventional financing as an option

Not a great starter home unless you could do all the work yourself (and thought the work was justified on a ‘future tear down’)

Investment potential: a 2/1 in this location (even a crappy one) probably rents for $1050 pretty easily – 150 times monthly rent would be $157.5K – 100 times rents is $105K – at $279K this property isn’t going to attract investors (although there is probably somebody who thinks they can flip this thing for a profit)

Can someone pull the history on this property please?

[4plexowner]

I just re-read the op – if this thing closed escrow in 2005 then it must be in better condition than I was thinking

I would assume that at the very least a termite certification was obtained and I would hope that for $485K the house didn’t have any major structural issues or seriously outdated electrical / plumbing systems (although these could be bad assumptions given the May ’05 sale date)

Bugs: any thoughts on ‘hiding’ major issues from a loan underwriter? for example: knob and tube wiring system (http://www.oldhouseweb.com/stories/Detailed/14214.shtml), glass screw-in fuses in breaker box, cracked stem walls in foundation, shifted or tilted foundation, etc – obviously these issues detract from the value of the property but a lender may not be aware of them

An honest seller would disclose any known issues and a savvy buyer would insist on inspections – an underwriter would look at these documents and make a decision – but a dishonest seller and a naive buyer is a different story

[4plexowner]

I just re-read the op – if this thing closed escrow in 2005 then it must be in better condition than I was thinking

I would assume that at the very least a termite certification was obtained and I would hope that for $485K the house didn’t have any major structural issues or seriously outdated electrical / plumbing systems (although these could be bad assumptions given the May ’05 sale date)

Bugs: any thoughts on ‘hiding’ major issues from a loan underwriter? for example: knob and tube wiring system (http://www.oldhouseweb.com/stories/Detailed/14214.shtml), glass screw-in fuses in breaker box, cracked stem walls in foundation, shifted or tilted foundation, etc – obviously these issues detract from the value of the property but a lender may not be aware of them

An honest seller would disclose any known issues and a savvy buyer would insist on inspections – an underwriter would look at these documents and make a decision – but a dishonest seller and a naive buyer is a different story

[4plexowner]

I just re-read the op – if this thing closed escrow in 2005 then it must be in better condition than I was thinking

I would assume that at the very least a termite certification was obtained and I would hope that for $485K the house didn’t have any major structural issues or seriously outdated electrical / plumbing systems (although these could be bad assumptions given the May ’05 sale date)

Bugs: any thoughts on ‘hiding’ major issues from a loan underwriter? for example: knob and tube wiring system (http://www.oldhouseweb.com/stories/Detailed/14214.shtml), glass screw-in fuses in breaker box, cracked stem walls in foundation, shifted or tilted foundation, etc – obviously these issues detract from the value of the property but a lender may not be aware of them

An honest seller would disclose any known issues and a savvy buyer would insist on inspections – an underwriter would look at these documents and make a decision – but a dishonest seller and a naive buyer is a different story

[4plexowner]

I just re-read the op – if this thing closed escrow in 2005 then it must be in better condition than I was thinking

I would assume that at the very least a termite certification was obtained and I would hope that for $485K the house didn’t have any major structural issues or seriously outdated electrical / plumbing systems (although these could be bad assumptions given the May ’05 sale date)

Bugs: any thoughts on ‘hiding’ major issues from a loan underwriter? for example: knob and tube wiring system (http://www.oldhouseweb.com/stories/Detailed/14214.shtml), glass screw-in fuses in breaker box, cracked stem walls in foundation, shifted or tilted foundation, etc – obviously these issues detract from the value of the property but a lender may not be aware of them

An honest seller would disclose any known issues and a savvy buyer would insist on inspections – an underwriter would look at these documents and make a decision – but a dishonest seller and a naive buyer is a different story

[4plexowner]

I just re-read the op – if this thing closed escrow in 2005 then it must be in better condition than I was thinking

I would assume that at the very least a termite certification was obtained and I would hope that for $485K the house didn’t have any major structural issues or seriously outdated electrical / plumbing systems (although these could be bad assumptions given the May ’05 sale date)

Bugs: any thoughts on ‘hiding’ major issues from a loan underwriter? for example: knob and tube wiring system (http://www.oldhouseweb.com/stories/Detailed/14214.shtml), glass screw-in fuses in breaker box, cracked stem walls in foundation, shifted or tilted foundation, etc – obviously these issues detract from the value of the property but a lender may not be aware of them

An honest seller would disclose any known issues and a savvy buyer would insist on inspections – an underwriter would look at these documents and make a decision – but a dishonest seller and a naive buyer is a different story

[4plexowner]

Interesting listing – decent location north of Adams for less than $300K – but very tiny and the 1913 build date is probably accurate – listing says ‘As Is’ and ‘future tear down’ which probably means the house is basically a scraper (assume wood issues and outdated electrical and plumbing for starters – wouldn’t be surprised to find foundation issues as well) – the deep, narrow lot limits the options for new construction -‘As Is’ condition of the house most likely eliminates conventional financing as an option

Not a great starter home unless you could do all the work yourself (and thought the work was justified on a ‘future tear down’)

Investment potential: a 2/1 in this location (even a crappy one) probably rents for $1050 pretty easily – 150 times monthly rent would be $157.5K – 100 times rents is $105K – at $279K this property isn’t going to attract investors (although there is probably somebody who thinks they can flip this thing for a profit)

Can someone pull the history on this property please?

[4plexowner]

Interesting listing – decent location north of Adams for less than $300K – but very tiny and the 1913 build date is probably accurate – listing says ‘As Is’ and ‘future tear down’ which probably means the house is basically a scraper (assume wood issues and outdated electrical and plumbing for starters – wouldn’t be surprised to find foundation issues as well) – the deep, narrow lot limits the options for new construction -‘As Is’ condition of the house most likely eliminates conventional financing as an option

Not a great starter home unless you could do all the work yourself (and thought the work was justified on a ‘future tear down’)

Investment potential: a 2/1 in this location (even a crappy one) probably rents for $1050 pretty easily – 150 times monthly rent would be $157.5K – 100 times rents is $105K – at $279K this property isn’t going to attract investors (although there is probably somebody who thinks they can flip this thing for a profit)

Can someone pull the history on this property please?

[4plexowner]

Interesting listing – decent location north of Adams for less than $300K – but very tiny and the 1913 build date is probably accurate – listing says ‘As Is’ and ‘future tear down’ which probably means the house is basically a scraper (assume wood issues and outdated electrical and plumbing for starters – wouldn’t be surprised to find foundation issues as well) – the deep, narrow lot limits the options for new construction -‘As Is’ condition of the house most likely eliminates conventional financing as an option

Not a great starter home unless you could do all the work yourself (and thought the work was justified on a ‘future tear down’)

Investment potential: a 2/1 in this location (even a crappy one) probably rents for $1050 pretty easily – 150 times monthly rent would be $157.5K – 100 times rents is $105K – at $279K this property isn’t going to attract investors (although there is probably somebody who thinks they can flip this thing for a profit)

Can someone pull the history on this property please?

[4plexowner]

Interesting listing – decent location north of Adams for less than $300K – but very tiny and the 1913 build date is probably accurate – listing says ‘As Is’ and ‘future tear down’ which probably means the house is basically a scraper (assume wood issues and outdated electrical and plumbing for starters – wouldn’t be surprised to find foundation issues as well) – the deep, narrow lot limits the options for new construction -‘As Is’ condition of the house most likely eliminates conventional financing as an option

Not a great starter home unless you could do all the work yourself (and thought the work was justified on a ‘future tear down’)

Investment potential: a 2/1 in this location (even a crappy one) probably rents for $1050 pretty easily – 150 times monthly rent would be $157.5K – 100 times rents is $105K – at $279K this property isn’t going to attract investors (although there is probably somebody who thinks they can flip this thing for a profit)

Can someone pull the history on this property please?

[DCRogers]

Sales history:

07/25/03 $356,000.
12/09/03 $375,500.
05/04/05 $485,000.
On market $279,000.

House is nicely fixed up on the outside, don’t know about the inside. Maybe something severe but hidden like foundation problems if they’re recommending a tear-down. Or, (back to the original argument), maybe banks are getting serious at what it will take to make sales.

That said, it’s on a depth-split lot, so the set-backs required for modern construction would seem to preclude rebuilding anything bigger (as does the tiny 3000sf lot size).

County records says it’s 650SF, MLS says 800SF: maybe someone enclosed a porch in back, or re-measured with a more generous tape-measure.

[Bugs]

I’m on the clock this morning – gotta try to squeeze a 2hr surf session in before noon. I’ll give this property the once-over later on.

[SD Realtor]

I am skeptical that the lender will accept anything in the price range mostly because of how irritated I have become with the short sale process. Also I have found that many short sales that are now priced aggressively are done so in order to submit a valid offer to the lender with the hopes that the lender will at least push out the trustee sale date. That said the first on this one is 388k and a 2nd of 97k. Also there are two pendings on Hawley, at a much higher per square foot price then the current active is priced at. The NOD was posted 9/11/07. Now the home was marketed on the MLS for 84 days at 485k when it opened and it was down to 349k by the end of the listing.

Most people have to understand that the lender does not set the price for the short sale, the realtor does and usually the lender will not even give ANY feedback until the short sale package is SUBMITTED IN FULL to the lender. This must include an offer. Then the lender will put in some time and effort, (and a little money) to do an analysis to then give some feedback.

The entire process is really f’d up.

At any rate I am not saying that the property is or is not priced well, I am just saying the short sale process sucks and I am skeptical the lender will accept in this range. However perhaps lenders are getting smarter!

SD Realtor

[SD Realtor]

I am skeptical that the lender will accept anything in the price range mostly because of how irritated I have become with the short sale process. Also I have found that many short sales that are now priced aggressively are done so in order to submit a valid offer to the lender with the hopes that the lender will at least push out the trustee sale date. That said the first on this one is 388k and a 2nd of 97k. Also there are two pendings on Hawley, at a much higher per square foot price then the current active is priced at. The NOD was posted 9/11/07. Now the home was marketed on the MLS for 84 days at 485k when it opened and it was down to 349k by the end of the listing.

Most people have to understand that the lender does not set the price for the short sale, the realtor does and usually the lender will not even give ANY feedback until the short sale package is SUBMITTED IN FULL to the lender. This must include an offer. Then the lender will put in some time and effort, (and a little money) to do an analysis to then give some feedback.

The entire process is really f’d up.

At any rate I am not saying that the property is or is not priced well, I am just saying the short sale process sucks and I am skeptical the lender will accept in this range. However perhaps lenders are getting smarter!

SD Realtor

[SD Realtor]

I am skeptical that the lender will accept anything in the price range mostly because of how irritated I have become with the short sale process. Also I have found that many short sales that are now priced aggressively are done so in order to submit a valid offer to the lender with the hopes that the lender will at least push out the trustee sale date. That said the first on this one is 388k and a 2nd of 97k. Also there are two pendings on Hawley, at a much higher per square foot price then the current active is priced at. The NOD was posted 9/11/07. Now the home was marketed on the MLS for 84 days at 485k when it opened and it was down to 349k by the end of the listing.

Most people have to understand that the lender does not set the price for the short sale, the realtor does and usually the lender will not even give ANY feedback until the short sale package is SUBMITTED IN FULL to the lender. This must include an offer. Then the lender will put in some time and effort, (and a little money) to do an analysis to then give some feedback.

The entire process is really f’d up.

At any rate I am not saying that the property is or is not priced well, I am just saying the short sale process sucks and I am skeptical the lender will accept in this range. However perhaps lenders are getting smarter!

SD Realtor

[SD Realtor]

I am skeptical that the lender will accept anything in the price range mostly because of how irritated I have become with the short sale process. Also I have found that many short sales that are now priced aggressively are done so in order to submit a valid offer to the lender with the hopes that the lender will at least push out the trustee sale date. That said the first on this one is 388k and a 2nd of 97k. Also there are two pendings on Hawley, at a much higher per square foot price then the current active is priced at. The NOD was posted 9/11/07. Now the home was marketed on the MLS for 84 days at 485k when it opened and it was down to 349k by the end of the listing.

Most people have to understand that the lender does not set the price for the short sale, the realtor does and usually the lender will not even give ANY feedback until the short sale package is SUBMITTED IN FULL to the lender. This must include an offer. Then the lender will put in some time and effort, (and a little money) to do an analysis to then give some feedback.

The entire process is really f’d up.

At any rate I am not saying that the property is or is not priced well, I am just saying the short sale process sucks and I am skeptical the lender will accept in this range. However perhaps lenders are getting smarter!

SD Realtor

[SD Realtor]

I am skeptical that the lender will accept anything in the price range mostly because of how irritated I have become with the short sale process. Also I have found that many short sales that are now priced aggressively are done so in order to submit a valid offer to the lender with the hopes that the lender will at least push out the trustee sale date. That said the first on this one is 388k and a 2nd of 97k. Also there are two pendings on Hawley, at a much higher per square foot price then the current active is priced at. The NOD was posted 9/11/07. Now the home was marketed on the MLS for 84 days at 485k when it opened and it was down to 349k by the end of the listing.

Most people have to understand that the lender does not set the price for the short sale, the realtor does and usually the lender will not even give ANY feedback until the short sale package is SUBMITTED IN FULL to the lender. This must include an offer. Then the lender will put in some time and effort, (and a little money) to do an analysis to then give some feedback.

The entire process is really f’d up.

At any rate I am not saying that the property is or is not priced well, I am just saying the short sale process sucks and I am skeptical the lender will accept in this range. However perhaps lenders are getting smarter!

SD Realtor

[Bugs]

I’m on the clock this morning – gotta try to squeeze a 2hr surf session in before noon. I’ll give this property the once-over later on.

[Bugs]

I’m on the clock this morning – gotta try to squeeze a 2hr surf session in before noon. I’ll give this property the once-over later on.

[Bugs]

I’m on the clock this morning – gotta try to squeeze a 2hr surf session in before noon. I’ll give this property the once-over later on.

[Bugs]

I’m on the clock this morning – gotta try to squeeze a 2hr surf session in before noon. I’ll give this property the once-over later on.

[DCRogers]

Sales history:

07/25/03 $356,000.
12/09/03 $375,500.
05/04/05 $485,000.
On market $279,000.

House is nicely fixed up on the outside, don’t know about the inside. Maybe something severe but hidden like foundation problems if they’re recommending a tear-down. Or, (back to the original argument), maybe banks are getting serious at what it will take to make sales.

That said, it’s on a depth-split lot, so the set-backs required for modern construction would seem to preclude rebuilding anything bigger (as does the tiny 3000sf lot size).

County records says it’s 650SF, MLS says 800SF: maybe someone enclosed a porch in back, or re-measured with a more generous tape-measure.

[DCRogers]

Sales history:

07/25/03 $356,000.
12/09/03 $375,500.
05/04/05 $485,000.
On market $279,000.

House is nicely fixed up on the outside, don’t know about the inside. Maybe something severe but hidden like foundation problems if they’re recommending a tear-down. Or, (back to the original argument), maybe banks are getting serious at what it will take to make sales.

That said, it’s on a depth-split lot, so the set-backs required for modern construction would seem to preclude rebuilding anything bigger (as does the tiny 3000sf lot size).

County records says it’s 650SF, MLS says 800SF: maybe someone enclosed a porch in back, or re-measured with a more generous tape-measure.

[DCRogers]

Sales history:

07/25/03 $356,000.
12/09/03 $375,500.
05/04/05 $485,000.
On market $279,000.

House is nicely fixed up on the outside, don’t know about the inside. Maybe something severe but hidden like foundation problems if they’re recommending a tear-down. Or, (back to the original argument), maybe banks are getting serious at what it will take to make sales.

That said, it’s on a depth-split lot, so the set-backs required for modern construction would seem to preclude rebuilding anything bigger (as does the tiny 3000sf lot size).

County records says it’s 650SF, MLS says 800SF: maybe someone enclosed a porch in back, or re-measured with a more generous tape-measure.

[DCRogers]

Sales history:

07/25/03 $356,000.
12/09/03 $375,500.
05/04/05 $485,000.
On market $279,000.

House is nicely fixed up on the outside, don’t know about the inside. Maybe something severe but hidden like foundation problems if they’re recommending a tear-down. Or, (back to the original argument), maybe banks are getting serious at what it will take to make sales.

That said, it’s on a depth-split lot, so the set-backs required for modern construction would seem to preclude rebuilding anything bigger (as does the tiny 3000sf lot size).

County records says it’s 650SF, MLS says 800SF: maybe someone enclosed a porch in back, or re-measured with a more generous tape-measure.

[DCRogers]

Oops, apologies for mistaking this for the REO on Hawley… SD Realtor, thanks for clearing this up.

That said, if what you’ve said about lender lack-of-help in pricing short sales is true (and I do not doubt it), then the process is indeed a mess. Lenders should expect more initiatives like the one the Governor is pushing (I do not know much detail, and cannot judge it yet) unless they get ahead of the foreclosure curve at some point and try to help failing borrowers towards the path that makes the most sense for each: deed-in-lieu, short sale, refi, rate reduction, or foreclosure. The fact that things seem on auto-pilot to FC is what makes people push for gov’t action.

[eyePod]

SD Realtor – The banks don’t want to lose money. This means they don’t want to sell for a loss AND they don’t want to spend time (time=money) on a short sale. They want YOU the poor realtor to do all the work for free. And the seller wants you to work for free so they can have their house longer. You have my sympathy.

[4plexowner]

SD Realtor – your post makes me think that the first person to offer on a short sale is the trail-blazer for a given property

for example, you and I submit an offer at $279K on this Normal Hts property – the bank might not accept anything less than $385K but we don’t know that until we make them an offer – I’m the type of person who will get pissed-off pretty quickly by this deceptive (IMO) marketing and I will walk away from the deal – but now you know the price point the bank will accept so you have a better shot of selling the property to someone else

of course, what are the chances that you have a 2nd buyer in hand who will be interested in the same property?

seems to me that the listing agent has an incentive to get an offer (almost any offer) to the bank as soon as possible – this first offer helps the listing agent find out how motivated the bank is and where the real short sale price might be – the desire to get an offer to the bank quickly might motivate the listing agent to list at a remarkably low price even though he doubts the bank will sell for that price

[SD Realtor]

4plex essentially you are correct. Now a distressed seller may indeed complete the short sale package and send it in prior to an offer coming in. However it is my opinion that they never get looked at due to volume.

Here is an example… I have a current short sale… It is a home in Lakeside. My clients sent in a fully completed documentation package many months ago to the loan workout department in an effort to restructure the loan. The package (at least for this lender) was identical to the short sale package with regards to the sellers information. So the lender would not budge… Now that we have an offer the lender has acted but in a very slow and disinterested manner. I am still haggling with them just to see if they will “consider” the offer. Consider being taking it seriously, sending an appraiser out, and giving me half a clue as to what they will respond to.

So yes you are correct that the first offer trailblazes the effort. Hopefully I will find out what neighborhood the lender will consider though I doubt it will be where this home is priced. I believe the home is priced to low and it will go to trustee sale. I think this is the case for many many short sales listed out there. Why these lenders think they will fetch more at auction is beyond me.

Your observations are on the mark. Getting any feedback from lenders in this market is key and what you described above is the only way to do it.

SD Realtor

[SD Realtor]

4plex essentially you are correct. Now a distressed seller may indeed complete the short sale package and send it in prior to an offer coming in. However it is my opinion that they never get looked at due to volume.

Here is an example… I have a current short sale… It is a home in Lakeside. My clients sent in a fully completed documentation package many months ago to the loan workout department in an effort to restructure the loan. The package (at least for this lender) was identical to the short sale package with regards to the sellers information. So the lender would not budge… Now that we have an offer the lender has acted but in a very slow and disinterested manner. I am still haggling with them just to see if they will “consider” the offer. Consider being taking it seriously, sending an appraiser out, and giving me half a clue as to what they will respond to.

So yes you are correct that the first offer trailblazes the effort. Hopefully I will find out what neighborhood the lender will consider though I doubt it will be where this home is priced. I believe the home is priced to low and it will go to trustee sale. I think this is the case for many many short sales listed out there. Why these lenders think they will fetch more at auction is beyond me.

Your observations are on the mark. Getting any feedback from lenders in this market is key and what you described above is the only way to do it.

SD Realtor

[SD Realtor]

4plex essentially you are correct. Now a distressed seller may indeed complete the short sale package and send it in prior to an offer coming in. However it is my opinion that they never get looked at due to volume.

Here is an example… I have a current short sale… It is a home in Lakeside. My clients sent in a fully completed documentation package many months ago to the loan workout department in an effort to restructure the loan. The package (at least for this lender) was identical to the short sale package with regards to the sellers information. So the lender would not budge… Now that we have an offer the lender has acted but in a very slow and disinterested manner. I am still haggling with them just to see if they will “consider” the offer. Consider being taking it seriously, sending an appraiser out, and giving me half a clue as to what they will respond to.

So yes you are correct that the first offer trailblazes the effort. Hopefully I will find out what neighborhood the lender will consider though I doubt it will be where this home is priced. I believe the home is priced to low and it will go to trustee sale. I think this is the case for many many short sales listed out there. Why these lenders think they will fetch more at auction is beyond me.

Your observations are on the mark. Getting any feedback from lenders in this market is key and what you described above is the only way to do it.

SD Realtor

[SD Realtor]

4plex essentially you are correct. Now a distressed seller may indeed complete the short sale package and send it in prior to an offer coming in. However it is my opinion that they never get looked at due to volume.

Here is an example… I have a current short sale… It is a home in Lakeside. My clients sent in a fully completed documentation package many months ago to the loan workout department in an effort to restructure the loan. The package (at least for this lender) was identical to the short sale package with regards to the sellers information. So the lender would not budge… Now that we have an offer the lender has acted but in a very slow and disinterested manner. I am still haggling with them just to see if they will “consider” the offer. Consider being taking it seriously, sending an appraiser out, and giving me half a clue as to what they will respond to.

So yes you are correct that the first offer trailblazes the effort. Hopefully I will find out what neighborhood the lender will consider though I doubt it will be where this home is priced. I believe the home is priced to low and it will go to trustee sale. I think this is the case for many many short sales listed out there. Why these lenders think they will fetch more at auction is beyond me.

Your observations are on the mark. Getting any feedback from lenders in this market is key and what you described above is the only way to do it.

SD Realtor

[SD Realtor]

4plex essentially you are correct. Now a distressed seller may indeed complete the short sale package and send it in prior to an offer coming in. However it is my opinion that they never get looked at due to volume.

Here is an example… I have a current short sale… It is a home in Lakeside. My clients sent in a fully completed documentation package many months ago to the loan workout department in an effort to restructure the loan. The package (at least for this lender) was identical to the short sale package with regards to the sellers information. So the lender would not budge… Now that we have an offer the lender has acted but in a very slow and disinterested manner. I am still haggling with them just to see if they will “consider” the offer. Consider being taking it seriously, sending an appraiser out, and giving me half a clue as to what they will respond to.

So yes you are correct that the first offer trailblazes the effort. Hopefully I will find out what neighborhood the lender will consider though I doubt it will be where this home is priced. I believe the home is priced to low and it will go to trustee sale. I think this is the case for many many short sales listed out there. Why these lenders think they will fetch more at auction is beyond me.

Your observations are on the mark. Getting any feedback from lenders in this market is key and what you described above is the only way to do it.

SD Realtor

[4plexowner]

SD Realtor – your post makes me think that the first person to offer on a short sale is the trail-blazer for a given property

for example, you and I submit an offer at $279K on this Normal Hts property – the bank might not accept anything less than $385K but we don’t know that until we make them an offer – I’m the type of person who will get pissed-off pretty quickly by this deceptive (IMO) marketing and I will walk away from the deal – but now you know the price point the bank will accept so you have a better shot of selling the property to someone else

of course, what are the chances that you have a 2nd buyer in hand who will be interested in the same property?

seems to me that the listing agent has an incentive to get an offer (almost any offer) to the bank as soon as possible – this first offer helps the listing agent find out how motivated the bank is and where the real short sale price might be – the desire to get an offer to the bank quickly might motivate the listing agent to list at a remarkably low price even though he doubts the bank will sell for that price

[4plexowner]

SD Realtor – your post makes me think that the first person to offer on a short sale is the trail-blazer for a given property

for example, you and I submit an offer at $279K on this Normal Hts property – the bank might not accept anything less than $385K but we don’t know that until we make them an offer – I’m the type of person who will get pissed-off pretty quickly by this deceptive (IMO) marketing and I will walk away from the deal – but now you know the price point the bank will accept so you have a better shot of selling the property to someone else

of course, what are the chances that you have a 2nd buyer in hand who will be interested in the same property?

seems to me that the listing agent has an incentive to get an offer (almost any offer) to the bank as soon as possible – this first offer helps the listing agent find out how motivated the bank is and where the real short sale price might be – the desire to get an offer to the bank quickly might motivate the listing agent to list at a remarkably low price even though he doubts the bank will sell for that price

[4plexowner]

SD Realtor – your post makes me think that the first person to offer on a short sale is the trail-blazer for a given property

for example, you and I submit an offer at $279K on this Normal Hts property – the bank might not accept anything less than $385K but we don’t know that until we make them an offer – I’m the type of person who will get pissed-off pretty quickly by this deceptive (IMO) marketing and I will walk away from the deal – but now you know the price point the bank will accept so you have a better shot of selling the property to someone else

of course, what are the chances that you have a 2nd buyer in hand who will be interested in the same property?

seems to me that the listing agent has an incentive to get an offer (almost any offer) to the bank as soon as possible – this first offer helps the listing agent find out how motivated the bank is and where the real short sale price might be – the desire to get an offer to the bank quickly might motivate the listing agent to list at a remarkably low price even though he doubts the bank will sell for that price

[4plexowner]

SD Realtor – your post makes me think that the first person to offer on a short sale is the trail-blazer for a given property

for example, you and I submit an offer at $279K on this Normal Hts property – the bank might not accept anything less than $385K but we don’t know that until we make them an offer – I’m the type of person who will get pissed-off pretty quickly by this deceptive (IMO) marketing and I will walk away from the deal – but now you know the price point the bank will accept so you have a better shot of selling the property to someone else

of course, what are the chances that you have a 2nd buyer in hand who will be interested in the same property?

seems to me that the listing agent has an incentive to get an offer (almost any offer) to the bank as soon as possible – this first offer helps the listing agent find out how motivated the bank is and where the real short sale price might be – the desire to get an offer to the bank quickly might motivate the listing agent to list at a remarkably low price even though he doubts the bank will sell for that price

[eyePod]

SD Realtor – The banks don’t want to lose money. This means they don’t want to sell for a loss AND they don’t want to spend time (time=money) on a short sale. They want YOU the poor realtor to do all the work for free. And the seller wants you to work for free so they can have their house longer. You have my sympathy.

[eyePod]

SD Realtor – The banks don’t want to lose money. This means they don’t want to sell for a loss AND they don’t want to spend time (time=money) on a short sale. They want YOU the poor realtor to do all the work for free. And the seller wants you to work for free so they can have their house longer. You have my sympathy.

[eyePod]

SD Realtor – The banks don’t want to lose money. This means they don’t want to sell for a loss AND they don’t want to spend time (time=money) on a short sale. They want YOU the poor realtor to do all the work for free. And the seller wants you to work for free so they can have their house longer. You have my sympathy.

[eyePod]

SD Realtor – The banks don’t want to lose money. This means they don’t want to sell for a loss AND they don’t want to spend time (time=money) on a short sale. They want YOU the poor realtor to do all the work for free. And the seller wants you to work for free so they can have their house longer. You have my sympathy.

[DCRogers]

Oops, apologies for mistaking this for the REO on Hawley… SD Realtor, thanks for clearing this up.

That said, if what you’ve said about lender lack-of-help in pricing short sales is true (and I do not doubt it), then the process is indeed a mess. Lenders should expect more initiatives like the one the Governor is pushing (I do not know much detail, and cannot judge it yet) unless they get ahead of the foreclosure curve at some point and try to help failing borrowers towards the path that makes the most sense for each: deed-in-lieu, short sale, refi, rate reduction, or foreclosure. The fact that things seem on auto-pilot to FC is what makes people push for gov’t action.

[DCRogers]

Oops, apologies for mistaking this for the REO on Hawley… SD Realtor, thanks for clearing this up.

That said, if what you’ve said about lender lack-of-help in pricing short sales is true (and I do not doubt it), then the process is indeed a mess. Lenders should expect more initiatives like the one the Governor is pushing (I do not know much detail, and cannot judge it yet) unless they get ahead of the foreclosure curve at some point and try to help failing borrowers towards the path that makes the most sense for each: deed-in-lieu, short sale, refi, rate reduction, or foreclosure. The fact that things seem on auto-pilot to FC is what makes people push for gov’t action.

[DCRogers]

Oops, apologies for mistaking this for the REO on Hawley… SD Realtor, thanks for clearing this up.

That said, if what you’ve said about lender lack-of-help in pricing short sales is true (and I do not doubt it), then the process is indeed a mess. Lenders should expect more initiatives like the one the Governor is pushing (I do not know much detail, and cannot judge it yet) unless they get ahead of the foreclosure curve at some point and try to help failing borrowers towards the path that makes the most sense for each: deed-in-lieu, short sale, refi, rate reduction, or foreclosure. The fact that things seem on auto-pilot to FC is what makes people push for gov’t action.

[DCRogers]

Oops, apologies for mistaking this for the REO on Hawley… SD Realtor, thanks for clearing this up.

That said, if what you’ve said about lender lack-of-help in pricing short sales is true (and I do not doubt it), then the process is indeed a mess. Lenders should expect more initiatives like the one the Governor is pushing (I do not know much detail, and cannot judge it yet) unless they get ahead of the foreclosure curve at some point and try to help failing borrowers towards the path that makes the most sense for each: deed-in-lieu, short sale, refi, rate reduction, or foreclosure. The fact that things seem on auto-pilot to FC is what makes people push for gov’t action.

[Author]

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