Short Sale wizardry, let me hear your thoughts

[overst33r]

About a month ago, I went to see a nicely kept home that was listed as a short sale. I decided it was what I wanted and put in an offer for the asking price including some items inside the home. (Every nice home I've seen has been sold close to or above the asking price)

A few days later my agent received back an email from the realtor saying the home was temporarily off the market for 1-2 weeks. It's now been almost 5 weeks since I originally saw the house.

Today my agent forwards me this response from the realtor:

It will be going back on the market tomorrow at $140,000 (original price $160,000).
This is a recommended list price from the lender after reviewing bpo. It is not an approved short sale.

My agent thinks the reason for the delay was that the bank had decided to order a BPO which could take a month from when it's ordered until they have the results and that's what we've been waiting on. He thinks the realtor knew that but didn't share that info with us.

I personally find it very fishy that the price has been lowered so much for such a desirable property. Especially since they've likely seen my offer and possibly others close to the asking price.

What do you guys think is going on?

UPDATE: Closed on the house today! The whole process took nearly 4 months. I was able to lock in at 3.75% for a 30 year conventional before the rates went up.

 

[DAGTA]

Short sales aren't worth the trouble, in my opinion, unless you REALLY want the house and are willing to wait a long time and go through the hoops.

 

[SKORPI0]

Looks like they are looking around the area for similar sold/for sale houses and perhaps adjust the price according to the current market value. ^_^

 

[BoomerD]

We had a BPO on our house...got an offer at the BPO price and the sale was a approved...the lady's credit fell through just before escrow closed...so the bank ordered a NEW BPO...The back-up buyer made the same offer...the BPO price came in a bit higher...so the new buyer had to raise his offer. We're back in escrow.

The BPO price is supposed to be the MINIMUM price the bank will consider. (although if the realtor can prove that the price is too high , they MIGHT accept lower offers.)

 

[overst33r]

The BPO price is supposed to be the MINIMUM price the bank will consider. (although if the realtor can prove that the price is too high , they MIGHT accept lower offers.)

That's interesting.

My agent emailed the realtor and asked if there is any reason they expect offers higher than the BPO. The realtor replied with a no.

 

[dank69]

Maybe the house won't even appraise for $160k anymore?

 

[BoomerD]

That's interesting.

My agent emailed the realtor and asked if there is any reason they expect offers higher than the BPO. The realtor replied with a no.

Your local market will determine the BPO price...and banks generally won't loan money for more than any appraisal.

 

[Tweak155]

Had an offer on a short sale for 5 months without an answer. Just pulled the offer and bought a different house that wasn't a short sale. Huge waste of time.

On the flip side, we know someone who offered and was accepted within 2 weeks. Hit or miss it seems.

 

[overst33r]

Had an offer on a short sale for 5 months without an answer. Just pulled the offer and bought a different house that wasn't a short sale. Huge waste of time.

On the flip side, we know someone who offered and was accepted within 2 weeks. Hit or miss it seems.

When was this? From what I hear, they seem to be moving a lot faster these days, once in the process.

 

[Alienwho]

My current house I bought almost two years ago was a short sale. Bought it for $200k and it appraised for $280k 3 months after we bought it. My realtor was a short sale hot shot and closed the deal in no time at all. Less than two weeks. Easiest experience purchasing a house ever.

 

[overst33r]

UPDATE: Closed on the house today! The whole process took nearly 4 months. I was able to lock in at 3.75% for a 30 year conventional before the rates went up.

 

[dabuddha]

Congrats!

 

[Uppsala9496]

Congrats on the house. Sounds like you got one heck of deal for being patient.

 

[overst33r]

Congrats!

Congrats on the house. Sounds like you got one heck of deal for being patient.

Thank you!

Yeah, I think I did well. The deal is the cherry on top, I am just really happy with the house. It is in really good condition compared to most of the short sales I saw.

 

[BoomerD]

UPDATE: Closed on the house today! The whole process took nearly 4 months. I was able to lock in at 3.75% for a 30 year conventional before the rates went up.

Congrats. We had our house on the market for more than 6 months. Had 3 people make offers that we accepted...and all 3 fell through in the final weeks of escrow. Couldn't get financing, couldn't/wouldn't provide the necessary income paperwork, etc. Finally took a cash sale offer and closed in less than two weeks.
Short sales are a HUGE PITA for buyers and sellers alike.

 

[edro]

Maybe it has a safe hidden inside!

 

[sjwaste]

Maybe it has a safe hidden inside!

I got that reference!

 

[sonambulo]

Maybe it has a safe hidden inside!

Oh great, so now this thread is gonna give me blue balls too D:

 

[RedCOMET]

I'm trying to find a townhouse right now and in my market (and my Price point ) properties are moving like hot cakes.