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Short Sale to Foreclosure

Well, after going back and forth with the lender of my seller's home, the house will be going to foreclosure sale next Wednesday, November 5th.

The history of this home goes back over 1 year when it was first put on the market in August of 2007. I came on board as the 3rd Realtor in January of 2008. The sales price started at $749,000. Over the next few months I lowered the price gradually while awaiting my client to complete the bank's requested paperwork. Finally, in August, I had everything I needed from the seller for the bank to consider the short sale. Then, as I brought the price to $599,000, I finally received 2 strong offers from buyers for the full amount. The bank completed their appraisal and they agreed to the short sale, but only at a price of $615,000. Well, both buyers backed out last week and it's now going to foreclosure sale.

One bummer for the lender is that now it's going to sale, the seller is going to take the high end appliances out of the home. He's dismantling the BBQ outside and he's taking the handles out of the kitchen cabinets/drawers. He may even take the spa outside. For pictures of the home go to www.728colman.com

I guess that banks just don't consider these things. I'll be surprised if the bank gets $500,000 for the home after everything is out of there. It's not that pleasing to the eye to begin with. Like any other Realtor in this situation, I'm bummed because this empty home could have had an owner right away, if only the lender wasn't so greedy for $15,000.

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Posted by Linda Lane-White on 10/29/2008 11:23 AM

Comments (4)

altadena, short sale, foreclosure

This post has been included in California Information Los Angeles County, CA Information Altadena, CA Information
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Post is included in group: Posts to Localism
Post is included in group: Short Sales and Forclosures ONLY

4 Comments on Short Sale to Foreclosure

OCT

2008

Linda, how sad for both the seller and you. I know how hard you worked to make this sale happen! What a shame.

Hi, Irena, Thanks for commenting. Yes, like most Realtors, we all work hard to get the deals closed. In this case, I also found a temporary renter while he was gathering the lender's information. I staged the home, held open houses and tried maintaining the pool for the out of state seller until the pump and filter gave out. Then I could only keep water in the vinyl lined pool. I'm so sure that the lender will drain the pool, even though it looks like algae, but the chlorine is good, so no mosquito larvae. The vinyl will crack and will make it much more difficult to sell the property because it will cost a bundle to replace the vinyl liner! Oh, well. Lots of lessons learned in this strange market! Lenders should take note!

FEB

How sad and confusing. I certainly feel sorry for the seller, especially knowing that the bank will certainly not be getting much for the home once it's stripped. Perhaps Appraisers should be giving 2 Appraissals... with and without high end appliances (not to mention the problems that will arise once the house is left vacant for awhile.)

Yes, it really was a sad situation. The property went to foreclosure sale. 2 weeks later it was on the market for $545,000. Final sale price was $539,000. Our tax dollars are bailing out these institutions that really don't know how to handle the short sales. Speaking with some lenders, they just don't have the proper policies in place and their employees don't know how to handle the deals swiftly. Of course they have policies in place for REOs, thus the reason why home prices are dropping more drastically than they should. My opinion is that for the $61,000 that this bank lost from not accepting the $600K during the short sale they should be penalized that amount and not be given funds for these types of losses.

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