Short Sale Disaster

By
Real Estate Agent with RE/MAX Results

I would like to share an experience with you that happened today that made me scratch my head and ask myself, what was Bank Of America thinking? I have a Buyer that I am working with and we put an offer on a Short Sale, yes I know there is nothing short about a short sale. This particular short sale should have been a slam dunk, considering that Bank Of America (the first lien holder) was not going to lose a dime, just the second and third were losing. The second would have still got something and of course the third was out of luck all together. Now we started this process on October 6, 2009. Now here we are January 14, 2010 and we were told earlier this week, that the auction that was scheduled  for today was going to be postponed. I get a call this morning from the listing agent that the home had been sold at auction, that in itself was not the worst news, that came when the agent told me that the home sold for almost $50,000.00 less than what our offer was. Now you can call me crazy, but wouldn't that  be considered a pour business decision? You know I thought I heard somewhere that banks were hurting. I truly believe they are hurting because if this is how they do their business, then maybe instead of bailing these banks out, we should have just let them fail. This makes you wonder how many of these deals do they just toss $50,000.00 or more out the door. The purpose of this blog is hopefully people will read this and more people people will share the experiences like this and maybe if we are really lucky, our government will crack down on these banks and apply some really stringent  rules and regulations on these banks. It would not even hurt to apply some penalties on these banks.

Comments (7)

Cameron Novak
The Homefinding Center - Corona, CA
Featured Corona Real Estate Agent Team

Why do the banks have to be concerned with being profitable?  If they fail, the government will give them billions of my tax dollars.

I'm a short sale agent in the Corona/Riverside area of Southern California and I see this type of thing happening way too much. 

The sale shouldn't have happened, but the listing agent didn't know what to do to assure the sale had been postponed.  An attorney orders the sale and obviously the agent didn't contact the attorney in charge of the auction order.

Hopefully you won't lose the buyer as well.

Cameron Novak
Corona Real Estate Agent
The Homefinding Center
TM
Corona, California

Jan 14, 2010 06:08 PM
Cameron Novak
The Homefinding Center - Corona, CA
Featured Corona Real Estate Agent Team

P.S. The government getting involved in anything ALWAYS turns out to be a bad move.

Jan 14, 2010 06:09 PM
Jim Gaddis
Homestead Data - Binghamton, NY

Can't make sense out of nonsense.

Jan 14, 2010 06:33 PM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Bank of America has not done a very good job of handling short sales.  I've done a few with them and if you don't follow up consistently documents are lost, the process is canceled and no one is notified.  That would be my best guess. 

Jan 14, 2010 06:39 PM
Gary W. Jones
RE/MAX Results - Payson, UT

Forunately for my clients, I was able to get a hold of the person who bought the home and he bought it to sell. We are discussing an offer and if it works my clients will still get the home but for a cheaper price.

Jan 14, 2010 06:46 PM
Jeff Stinson
Kasteel Property Management - Property Manager - Springville, UT

Bank of America has a reputaion for how bad their short sales are.

Jeff Stinson

www.kasteelproperty.com

 

Mar 18, 2010 04:45 PM
Gary W. Jones
RE/MAX Results - Payson, UT

We are seeing the short sales start to come off the market which is helping sellers in the area get the price they want for their homes, not over market but at least they are selling.

Mar 24, 2010 06:20 PM