For a long time we have completely ignored even trying to buy any short sale properties. Typically the home owner decides to list the house with an agent they know and they just throw the property in the MLS with a super low asking price to attract an offer. The bank will take two to three months to respond and if they agree the home owner, the bank and the buyer all have to agree to purchase terms.
We decided to make an exception, one day we saw a great banked owned REO property come up on the MLS. We immediately made a full price cash offer and sure enough it went to highest and best and our offer was not picked. Since it has fallen out of escrow, we re-submitted our offer, it went to highest and best again and we missed.
As I was pulling comps in the area, I saw a property that is similiar but was listed as a 2 bedroom, 2 bathroom. It was a short-sale, but we decided to make an appointment to go look at it. It turns out it was really a 3 bedroom, 2 bathroom and the property need substantial repairs. We made a really low offer two months ago and have called the agent once a week.
The latest answer as of about four weeks ago, the bank wants to work with us and open escrow. But the frusturating part is, we have heard the same answer for the last four weeks. The bank is “working on it” and we will know soon. I would assume, this is standard procedure and we do not have high hopes at all. But if they accept anywhere near our original number it would be great!
With the latest update the agent just emailed today and said the homeowner has hired an attorney to assist him in the process to get the bank moving fast. The bank told the listing agent that they will get back to her on Wednesday with further instructions. What this means, I don’t know?
In the future, I think we will try the odd foreclosure, but with this kind of lead time, I really do not think you can make a business around it. But if we get this property it will be an absolutely great deal!