All Forum Posts by: Melissa G.

Good luck!

I don't know that you need a realtor, though it might be helpful for you to have a buyers agent.

Here's a link outlining the process of a short sale:
http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm

Yes, you will need a release from the owner. On the other hand, if the owner is willing to try a short sale, he needs to contact his lender and see if they are willing to take a loss.

We are considering purchasing a home at auction for our family. This is the first auction in our area where the homeowners aren't upside down in their mortgage. We've tried on a few occasions to purchase directly from the owners for what they owe, but they weren't willing to go lower than their asking price. So now it's up for auction and we're planning on bidding on it.

We have a few unanswered questions. First, we've been told that in our state (Maryland) anyone can contest the sale for up to 30 days. This may happen as we've been told that the homeowners may try to go through the loophole that Skidoodle mentioned here: http://www.biggerpockets.com/forums/41/topics/26472-foreclosures-all-read-pls?highlight= I called the trustee and they said they didn't see any title problem and the auction was still scheduled. Can the homeowner contest the sale after the sale? If so, what happens next?

There is no established redemption period in Maryland for the borrower, but the courts can set a redemption period on a case-by-base basis. How can I found out if there will be a redemption and how long it will be?

When does the homeowner have to vacate the property?

What if the homeowner damages the property before leaving?

Any other advice/information is greatly appreciated.

It's not possible. They have so many "i"s to dot and "t"s to cross. You have to be patient and go through their realtors. My experience (as little as it may be) has been that they'll only negotiate a certain percentage below their ask.
I've been waiting a year to buy an REO. They started out asking $840k and are now asking $634k. A month an a half ago I offered $655k and they turned me down! And now that I've lost so much money in the stock market, I'm wondering if it's a good time to part with the cash to buy this house.

Well, you can lead a horse to water. . .

I contacted the owner directly, but he's not interested in selling. He's going to try to work things out. He's over $30k in arrears and has other properties he's trying to hold. I think I'll be standing on the courthouse steps shortly. . .

Yes, it is listed w/ a realtor. I have been in contact with them, but they seem intent on trying to sell the house and make the owner a profit.

Thank you for your insight. I'm hoping to contact the owner tomorrow.

I'm trying to negotiate with an owner to buy his home that is in pre-forclosure. In your experience, how many owners are willing to make this kind of deal?

I don't know yet how much he owes on the home. I'm hoping it will be in my price range. If not, I'll ask if he'd work with me on a short sale. He should qualify as his recent divorce and stagnant real estate market has left him unable to sell his home and business. On average, how much are banks willing to lose in a short sale?

Jean,
I've been trying to purchase a home from Wells Fargo/PAS since April. It took forever for them to put a price on this house too. They started asking what was owed -- $840K Which was a joke since there are 32 houses for sale in this neighborhood where home values have tanked. They are now down to $689K. We're $40K away from their price and they still aren't taking it! They countered $3,000 below their ask. What a joke! I've moved on. They can sit on the house for another year. BTW, I'm the only buyer they've had on the house since they listed it. I'm now pursuing a home in the same neighborhood owned by UB&T. I put an offer in on Thursday and waiting for a response. With my offer, I have included a long letter cluing them in on what's happening here, photos of the condition of the house as well as the current CMAs. Maybe they will see the light.