Buying my first house in California
Hello. We are completely new to this website so please excuse my amateur level of knowledge on short sale. We recently moved to SF bay area suburb from east coast. Just 2 of us and hopefully a baby soon.
We were able to find a property on short sale in a nice suburb of San Francisco bay area. Although we had some reservations regarding the short sale we decided to go ahead with an offer.
We were told by our agents that there are two banks holding mortgages on this house. I believe our agents probably know which banks they are but I have a feeling that they don't want to know. Anyway, we want to learn more about the process and try to ask the right questions.
We've alreay made an offer at $800,000. The property has been on the market for about 5 months. Our agents were told by the property's representing agent that an offer of $765,000 was recently rejected by the bank(s). The owner of the property had stopped making the mortgage payment, however there are presumably renters living there.
What are some basic things we need to know at this point? Is there anything we can research on our own? Should we push our agents for more info?
Replies to This Discussion
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Permalink Reply by Jim Schneider on
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your agentS? you have more than one? Is it an agent team?
Things your should ask:
- How many short sales has the listing agent sold? (your agent can look this up on the mls)
- Which banks are servicing the mortgages? The listing agent shoud be able to tell your agent that, if not your agent could look it up in the county records
- Has a lis pendens been filed against the property? This shows when the foreclosure clock starts running, as you don't want to sit around waiting for the short sale to happen and have the house lost to foreclosure
- How long does it take for a bank to foreclose in our area on non-owner occupied properties (from lis pendens to foreclosure sale)?
- How long did it take for the banks to respond to the last offer?
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Permalink Reply by Joon Chang on
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Our real estates agents are husband and wife team. The husband is listed as the broker and the wife agent. They've been showing us houses for the last 4 months. Very experienced 20-30 years. Not with short sales though. They are in their 70's and I trust them.
Jim Schneider said:your agentS? you have more than one? Is it an agent team?
Things your should ask:
- How many short sales has the listing agent sold? (your agent can look this up on the mls)
- Which banks are servicing the mortgages? The listing agent shoud be able to tell your agent that, if not your agent could look it up in the county records
- Has a lis pendens been filed against the property? This shows when the foreclosure clock starts running, as you don't want to sit around waiting for the short sale to happen and have the house lost to foreclosure
- How long does it take for a bank to foreclose in our area on non-owner occupied properties (from lis pendens to foreclosure sale)?
- How long did it take for the banks to respond to the last offer?
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Okay, I just wanted to make sure you were'nt mistaking the listing agent for your agent. 1-5 is still what I'd suggest asking. The listing agent will likely be doing the lion's share of the work
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OK.
I have the answer to most of those questions. Thank you.
One thing I don't have is if there is lis pendens on this property. We've been told the property is set to go on foreclosure and then head into auction soon if the short sale does not happen, but I don't have the exact time line from now. I'd assume the listing agent will move fairly quickly on this as my offer is a significant improvement over the last.
Am I correct in this regard?
The other thing is if the bank negotiator wants us to pay more, should I be prepared to go up on the final price of the property or be persistent with the current price and risk being rejected. I could go up maybe 20k but no more and I don't really know if the additional increase will really improve the chance of final sale.
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Permalink Reply by Michael Ackerman, CRS, SFR, on
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Congratulations on entering into contract on your first home!!! You have many questions...
The Short Sale SuperStars board was originally intended for agents working on short sales to share information. Now it seems more consumers are reading and joining the discussions. Many of us are faced with a little different reality as it comes with new responsibilities and issues. It is all good, however many of us like Jim Schneider will advise that if you are a buyer or seller, please consult with your local agent and ask them the hard and specific questions. None of us privy to your contract, your specific circumstances, nor the details of your individual transaction.
We are all licensed in the state we practice in. Real estate laws also vary from state to state not to mention practices/convention may differ from county to county. It doesn't matter that lenders are national/international entities - they are governed by state and local regulations which only a local agent can guide you on; e.g. San Francisco Residential Rent Control has a say about the tenant occupied REO properties and even lenders often don't have a clue...
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Joon,
I agree in part with what Michael said, you and your agents are going to have to detirmine a negotiation strategy that works for you. In this reguard it's not that different from a normal sale except you're negotiating against a financial institution instead of ma and pa homeseller.
Some of the basics don't change, you should have an idea of what you're willing to pay max, and when you will walk. Keep that number tucked away, and make sure you can trust your agents to really work for your best interests.
If there is a foreclosure is set to go, a lis pendes has probably been filed some time ago. Most lenders do not stop trying to foreclosue just because there is a short sale offer. This site is filled with stories of agents that have presented decent offers only to have the bank foreclose before reviewing the short sale.
The listing agent will hopefully act quickly, but the more important problem is will the bank work quickly. I notice you didn't mention who is the servicer, investor, or mortgage insurer. Knowing that you may be able to find out more about what your chances are to complete this sale.
Good Luck,
Jim Schneider
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