Short Sale contract got cancelled

It could still work in your favor. Get a hold of the home owner and work with their mortgage company directly. The owner and mortgage company will be both motivated. You will probably need to move quick.

Randy

Do an end around and work with homeowner directly.

Eden we were waiting for the approval from the bank. I don't know why they didn't just re-list it. I couldn't talk to him at the time. I'll try asking more questions today when I go in to get my EMD. He said something about it going into a foreclosure now?

Blessings,
Barbara

Thanks so much Randy and Cathy. I'm on it.........I will let everyone know how it turns out.

Barbara

It could be several reasons

The owner(s), even to the last day they own, has the authority to renew the listing maybe felt like the broker/agent didn't do a good enough job. They still get a cut of the commission even if another agent sells so its not a total loss.

If the accepted offer is not under contract, aka signed, sealed and delivered, then its not an accepted offer. The bank moved on.

This is in your advantage. Make moves.

Oops

Double oops

I guess it shows the sad state the banks are in all the way up to decision making.

If I were to go around and deal with owner and bank, how would I do this? Should I try to find a SS agent and offer them a flat fee to work the ss package with the bank? I don't feel comfortable this being my first one to try and work that SS package myself. I've read the forums on doing the ss pkg yourself but it sounds a little complicated for my first time out.

What's your suggestion?

Do you know a SS specialist in your area who can negotiate with the bank? Possibly in your REI group? A foreclosure can be stopped up to 1 week ahead of time. Please keep us all posted on how this turns out.

Lea
SPR Property Solutions, LLC

I googled it and found some in my area. I'll see where that takes me and keep you posted.

Thanks again...

Make sure the SS specialist doesn't charge you to do this, especially if you will be the end buyer. I'm not sure what the laws are in Kansas but here it isn't legal to charge to do a SS.

Best of luck to you on this!

Lea
SRR Property Solutions, LLC

The only way I can make sense of this, is if it were going to auction very soon. I've had this happen to me many times as the Realtor in the transaction. If an offer hasn't been approved yet, they proceed with the foreclosure process, as if an offer was never made. It sounds like your Realtor dropped the ball along the way. If he/she hasn't been in close contact with that lender and submitted a complete short sale package, the bank won't even look at an offer. Even if that means the lender has to foreclose on the property. Banks are not smart operations, the people working there waste money like crazy because they don't know anything about Real Estate. They're in the business of lending money, not owning, maintaining, or handeling transactions of real estate. I would reevaluate if your Realtor is doing things correctly, legally, and in a timely manner. You might need a new agent. Also, keep trying on this property and other ones. It WILL happen!

I got to talk to the Realtor again and what he told me was the Redemption period is up on the house today not the listing. It’s already been through auction and the property was almost at the end of the redemption period when I put my offer in. He said he called daily to try and get things rolling but never ever got any response. He said he spent 2 hrs on the phone yesterday trying to get something done with no luck. He said it will go through the banks process again of BPO and all that goes with that before they put it back on the market again only now it will be a REO when comes back online.

He took a lot of time to explain the process with me and it sounded legit.

Just wanted to thank everyone for the responses. I learned a lot from this so it wasn’t all in vain. Sounds like SS are pretty hit and miss here. Not even 50% of them go through from what I’ve been told from a couple of Realtors now.

Thanks Lea for the added note on not charging for SS. I’ll remember that on the next one.

Thanks again..
Blessings,
Barbara

Thanks for letting us know what you found out from your REA. As always I wish you great success!

Lea
SPR Property Solutions, LLC

Two quick comments.

1. Banks are very incompetent in answering prospective buyers in short sales. This is what is probably hurting our recovery the most. Too much time is being taken to find an answer. What will happen when April 30th rolls around and contracts must be closed before the end of June to receive the credit? More foreclosures and bankruptcies in he future.

2. Please, never, ever pay upfront for any type of short sale service. I am a Realtor that will negotiate for the sales commission only. Why pay upfront for someone who may be able to resolve the issue with a bank. Generally speaking, the prepaid people are only able to resolve approximately 25% of what they start.

Thank you for your time in reading this,

David P. Kushner

Barbara,

So I don't make a mistake:

Was the Realtor(Listing agent) the only realtor in the transaction? Representing the seller- and pretty much guiding you through the process. Or did you have your own realtor representing you?

I'm asking because you call him your realtor but have Listing Agent in parentheses!

Let me know

Chad

Barbara,

So I don't make a mistake:

Was the Realtor(Listing agent) the only realtor in the transaction? Representing the seller- and pretty much guiding you through the process. Or did you have your own realtor representing you?

I'm asking because you call him your realtor but have Listing Agent in parentheses!

Let me know

Chad

so was this a short sale or just trying to purchase during redemption period? I was not aware that RE could be listed after foreclosure during the redemption period. Did he say how long the redemption period was? or how successfull he had been selling during this period?

Hi Chad,
My Realtor was the listing agent. I'm not having much luck yet finding a Realtor to work with so I'm using listing agents when I find a home I want to look at for now.

Thanks for the questions
Barbara

Yes this was a SS. It went to sherif sale while it was a SS then after the auction there's a redemption period before it goes into total foreclosure here in my area. The problem was I got in on the end of that redemption period and the bank never got back to us in time. Now it will come back on the market as a REO.

I'm not sure how long the redemption period is but the realtor said he hasn't had much luck in getting a property through while it's still in redemption.

Hope that helped.
Barbara

Nothing wrong with working listing agent as they already have info and while they benefit from getting entire commission, its also in their best interest to equally make you feel good and comfortable in the deal. Plus they share all the blame if something goes wrong

Thanks for your comments. They were very informative. Much appreciated....

http://www.shortsalesriches.com/welcome/

http://www.viddler.com/explore/fixaflip/videos/1/

The listing agent represents the seller. Which means works in the best interest of the seller. Has no loyalty to you except getting the deal done. FYI the best thing to do is interview with diferent realtors. A young new agressive realtor usually works best. he may not have the saavy but he has the drive, he can always get the advice and knowledge from office members.

Chad

In order to be a profitable foreclosure investor, if that is your goal, you will need to learn the laws that govern the foreclosure process in your areas so you will know when you are investing your time or wasting your time.