What does the lender do if the short sale doesnt sale??? (bank owned, days on market)

[911turbox50]

Im currently purchasing a short sale. Just curious if I cancel the contract and wait till the price goes down or even potentially get it at the auction? Anyone have any idea what countrywide does to the property if the it never sales? Do they continue to drop the price unitl it does? When do Country Wide take possession of the property? 1 year to 2 years? Someone give me the low down....

Thanks

[Broker Dave]

No rules, No rimes, No reason

Short Sales, days on market in the MLS i have seen over 500 days.

Foreclosure's, I have run across homeowners who stopped paying a year ago.

Have only seen a few that didn't sale that ended up in the REDC and not all sell at the auction either so placed back on the MLS.

I have a buyer who placed an offer and 4.5 months later we are still waiting for bank signatures, buyer wants to wait so I call or email every week for an update if the listing agent doesn't call or email first.

I've seen the banks pull properties due to low offers and place back in their inventory to sell later.

Keep your eyes open and maybe the bank will give.

[salmanalk]

FEMA is trying to put hurricane victims in foreclosed homes, this is another reason why the lender should accept the short sale!

[annerk]

Originally Posted by salmanalk

FEMA is trying to put hurricane victims in foreclosed homes, this is another reason why the lender should accept the short sale!

FEMA isn't going to be able to arbitrarily put people in homes. The owner of the property will have to come to an agreement with FEMA on rent. If the owner doesn't want to rent the home to FEMA, nothing can make them do so.

After seeing the damage done to the FEMA trailers after Hurricane Katrina, I think many--if not most--property owners are going to be really reluctant to agree to this type of arrangement. I know I would be. I'd rather just carry the property than end up with $40K in damages to repair, leaving the home out of service for months until negotiations with FEMA to pay for damages were complete and repairs were made.

That said, one thing I think banks are being foolish about is when there is a good tenant in a home that gets foreclosed on, and the bank evicts the tenant. In that case the bank isn't mitigating their loss. They should be bending over backwards to keep good tenants in the property.

They should also be ready with a list of available properties that they can privately rent to anyone in need of housing after a hurricane, setting their own criteria for acceptance of the new tenants based on anything they choose (that's not discriminatory) such as deposit, credit report, etc.

[Brasstec]

My son had a contract on a short sale. Things were going along well with the realtor talking to the bank negotiator every week, the bank had done appraisal and agreed on a price. Then the seller got a letter requiring her to attend a court ordered mediation due to Obama trying to 'help' homeowners. This person had already lived in the house for a year, making no payments and had no resources to make payments due to a death in the family. Regardless, they were required to take the house off the market and go anyway. DS had already waited 3 months and with the mediation was looking at another 2-3 months with no guarantee he would get the house ever.

So, he found a bank owned property - almost brand new house. One week after he closed on this house, the first one came back on the market. I was sick and disgusted. The first house was larger, a little cheaper and has an incredible view. DS is happy, he likes the house he got better.

I would only get involved with a short sale if I could find NOTHING else. There are plenty of bank owned properties out there. I would look for one of them instead.