Success in Short Sales

IrvineRealtor_IHB

IrvineRealtor_IHB

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Anyone have any success to report on short sale properties?



Would like to have feedback from any of you who have been involved in the process.

From MLS data, since 1/1/2005 there have only been 61 successfully closed short sales, out of a total of 7357 sales (0.83%) in all of Irvine.



Considering that there are 206 Active (currently) short sale offerings, that seems to be an extraordinarily low number of actual closings.



There are a large number of "fishing" low list prices available, but I think it would be helpful to drop a little more "reality" on the matter.
 
[quote author="IrvineRealtor" date=1213998756]Anyone have any success to report on short sale properties?



Would like to have feedback from any of you who have been involved in the process.

From MLS data, since 1/1/2005 there have only been 61 successfully closed short sales, out of a total of 7357 sales (0.83%) in all of Irvine.



Considering that there are 206 Active (currently) short sale offerings, that seems to be an extraordinarily low number of actual closings.



There are a large number of "fishing" low list prices available, but I think it would be helpful to drop a little more "reality" on the matter.</blockquote>
No, sorry. We were at a pool party yesterday and I listened to someone expressing their frustration at waiting for the bank to answer their short sale offer. It has been six seeks and they have not heard anything. I guess that is normal, eh? The other topic was some specific properties in Coto that were in the foreclosure process, but not listed for sale. Incredulity was being expressed that the "owners" were not trying to do something to lessen their pain.


And at the other end of the spectrum, it seems there is a lady making a $6,000,000 cash offer and she is trading up. The topic was how much moola she has and what will she ask for her present home.
 
why go though the hassle of a short sale??? just chill out and let the market take care of it. short sale eventually will turn into REO's. IMHO.



i had some experience going though a short sale back in 2007 ex: house was listed at 399k. made off of 380k went though the bank and the bank said i can have it for 435K. i laugh at the listing agent and told her forget it. i am wasting my time. all this took over 2 months. in the end.... the house went back to the bank. not sure what happen to it, since i have not seen it listed. so i guess it is sitting empty.
 
Is there a way to tell if a property on say redfin is a short sale if it isnt called out in the description? What is the difference between an MLS number starts with a P vs an S?
 
[quote author="LJinOC" date=1214004094]Is there a way to tell if a property on say redfin is a short sale if it isnt called out in the description? What is the difference between an MLS number starts with a P vs an S?</blockquote>


No help on the redfin listings. I'm sure they're reprogramming to capture the change from the direct MLS feed regarding short sales vs. standard sales vs. REOs.



Also, the first letter of an MLS listing indicates the participating board of the listing agent.



P = Pac West Assn of Realtors

S = Orange County Assn of Realtors

U = Newport Assn of Realtors

F = Southland Regional AOR (CRISnet)

R = Rancho-Southeast AOR

I = Pasadena/Glendale (i-Tech)

L = Laguna BOR



That's all I can think of for now...
 
a few friends interested in short sales in woodbury. only one actually closed. it was one of the portisols on rising sun. i think 50 or 53 rising sun? oh i forget, that whole street is on sale. anyway one of the homes that closed about 2 months ago. i remember them telling me they were interested in the short sale and had an offer in at 800k back in december. i've hesitated showing them what some of the other portisols on their street are listed for.
 
I've been monitoring the under 1M market in Costa Mesa for the past 6 months.



Inventory has averaged ~300, maybe 1/3 SS (though it was ~1/2 at the beginning of the year, now it is more REO)



Sales so far ~50, with 3 SS, 22 REO, and the remainder largely people who bought in the 80s/early 90s.
 
[quote author="freedomCM" date=1214010926]I've been monitoring the under 1M market in Costa Mesa for the past 6 months.



Inventory has averaged ~300, maybe 1/3 SS (though it was ~1/2 at the beginning of the year, now it is more REO)



Sales so far ~50, with 3 SS, 22 REO, and the remainder largely people who bought in the 80s/early 90s.</blockquote>
There is an <strong>over</strong> $1M market in Costa Mesa?
 
IR2 - I'm really glad you started this thread, because it's something I've been wondering too.



I've noticed a number of obvious short sale properties in South OC that have been sitting in the "backup offers accepted" stage for a long time, and judging by the loans on the property I just don't see how the lender(s) will let them close, short of the banks taking $100k+ hits.Perhaps these types of properties are helping explain why Steve Thomas' pendings hasn't yet aligned with much higher sales numbers.



Here are three examples of what I'm talking about:

<strong><a href="http://www.redfin.com/CA/Aliso-Viejo/45-Trofello-Ln-92656/home/5594937">45 Trofello Lane, Aliso Viejo</a></strong>

<strong>Asking price:</strong> $399,900

<strong>2004 purchase price:</strong> $529,000 ($476,100 loan, NTS amount is $525k)



<strong><a href="http://www.redfin.com/CA/Laguna-Niguel/24351-Registry-Ct-92677/home/5748586">24351 Registry, Laguna Niguel</a></strong>

<strong>Asking price:</strong>$439,900

<strong>2005 purchase price:</strong>$583,000 (100% financing)



<strong><a href="http://www.redfin.com/CA/Ladera-Ranch/3-Oatfield-Farm-92694/home/12317042">3 Oatfield Farm, Ladera Ranch</a></strong>

<strong>Asking price:</strong>$464,900

<strong>2005 purchase price:</strong>$625,000 (100% financing)

There are lots more of these out there right now...
 
[quote author="awgee" date=1214011349][quote author="freedomCM" date=1214010926]I've been monitoring the under 1M market in Costa Mesa for the past 6 months.



Inventory has averaged ~300, maybe 1/3 SS (though it was ~1/2 at the beginning of the year, now it is more REO)



Sales so far ~50, with 3 SS, 22 REO, and the remainder largely people who bought in the 80s/early 90s.</blockquote>
There is an <strong>over</strong> $1M market in Costa Mesa?</blockquote>


Are the bluffs or the east side the ghetto?
 
[quote author="awgee" date=1214011349][quote author="freedomCM" date=1214010926]I've been monitoring the under 1M market in Costa Mesa for the past 6 months.



Inventory has averaged ~300, maybe 1/3 SS (though it was ~1/2 at the beginning of the year, now it is more REO)



Sales so far ~50, with 3 SS, 22 REO, and the remainder largely people who bought in the 80s/early 90s.</blockquote>
There is an <strong>over</strong> $1M market in Costa Mesa?</blockquote>
<strong>



The question is, why is there an over 1M market in Irvine? </strong>



currently, there are 67 listings over 1M in Costa Mesa, a few on the west bluffs:



<a href="http://www.redfin.com/CA/Costa-Mesa/1151-Aviemore-Ter-92627/home/4562410">http://www.redfin.com/CA/Costa-Mesa/1151-Aviemore-Ter-92627/home/4562410</a>



<img src="http://i-0.rfimg.us/photo/46/bigphoto/483/S528483_E.jpg" alt="" />



with views like this to accompany the nice ocean breeze:



<img src="http://i-0.rfimg.us/photo/46/bigphoto/483/S528483_2_D.jpg" alt="" />

<strong>

Anything like this in Irvine???</strong>





But most of them are on the east side. Either nice homes on large lots like this:



<a href="http://www.redfin.com/CA/Costa-Mesa/2172-Orange-Ave-92627/home/5920902">http://www.redfin.com/CA/Costa-Mesa/2172-Orange-Ave-92627/home/5920902</a>



<img src="http://i-0.rfimg.us/photo/46/bigphoto/893/U8001893_3.jpg" alt="" />

<u></u>



or traditional like this:



<a href="http://www.redfin.com/CA/Newport-Beach/545-Redlands-Ave-92663/home/3241790">http://www.redfin.com/CA/Newport-Beach/545-Redlands-Ave-92663/home/3241790</a>



<img src="http://i-0.rfimg.us/photo/46/bigphoto/286/U8001286_2.jpg" alt="" />
 
Short sales are ridiculously drawn out. When I short saled my house in florida it took basically daily calls to Chase bank asking what else they needed. They would give me a list of things 1 week, I would send them in and say "Is there ANYTHING else you need???? ANYTHING????", they would say no then 3 weeks later would say "OH why didn't you send in your Grandmothers bra size, we need that to process the application. F$%^ them all. If I could do it over again, I would follow the suggestion of a guy who I spoke with after i started the process who said he basically sends the lender a spiral bound folder with every stinking thing they could ever possibly want and a hardship letter and comps clearly detailing how they had better take this deal or else. Suntrust, my 1st, denied the short sale by having an appraisal and claiming my house was worth 40K more than it was. If I recall correctly, they used 1 sale that was like 11 months old, 1 that was a listing only and was pulled from the market, 1 with a pool a few miles away, and 1 active listing. Total BS, but screw them now, looks like they are getting theirs...
 
I have a friend who completed the purchase of a short sale property in Tustin (I think it closed in April). It took her 4 months to get a yes from the bank (Countrywide). I've heard that it takes Countrywide, on average, 4-6 MONTHS to give any answer on short sales. Can this be right?
 
It sure can be right.



I think the lenders know in their hearts they are gonna

go down and are just stretching out the inevitable month by

month. Nobody can be that stupid for that long, not even

banks.



If they admitted how valueless their inventory really was,

they'd have to take their licks for being insolvent sooner rather

than later.
 
[quote author="lawyerliz" date=1214127172]It sure can be right.



I think the lenders know in their hearts they are gonna

go down and are just stretching out the inevitable month by

month. Nobody can be that stupid for that long, not even

banks.



If they admitted how valueless their inventory really was,

they'd have to take their licks for being insolvent sooner rather

than later.</blockquote>


Liz, I've been thinking the same thing. For short sales that get an NOD, it's near certain that the bank will own the house within 6 months and then sell it at a lower price with a higher cost (e.g., foreclosure fees, Realtor commissions, etc.). Rather than monetizing the nonperforming asset at a smaller loss immediately, it seems that they are letting it go through the process at a larger loss, but not having to report the loss as quickly. If one were trying to mitigate actual loss, this doesn't make sense. So all I can figure is that they want the losses to come in (and be valued) more slowly.



Oh, and I wonder if Countrywide will speed up their process once the B of A merger goes through.
 
[quote author="EvaLSeraphim" date=1214141349]Oh, and I wonder if Countrywide will speed up their process once the B of A merger goes through.</blockquote>


I have a bad feeling it will only get worse. Anyone who has been through a merger knows it takes time to adjust/fire/hire the right people in their respective departments. Once that finally clears way, then you have to adjust to BofA's policies. From what I see, hear, and know of BofA, then they will be a stickler on prices. They reject short sales more than anyone, won't drop the price at the foreclosure auction, and refuse to drop the price on their REOs.



Judging by how bad CFC really is, they need to change their policies to drop prices like mad. I just checked a MBS disaster pool of CFC's and it was over 50% delinquent. It was a re-securitization, but OMG the thing was awful. From my understanding of the pool, it was a pool of loans that were ARMs and re-done to fixed rate loans. It looks like a "Hope Now" is a hopeless failure in the works to me. $355mil and half of it is delinquent. Nasty, just nasty. Back in the 90s, the guberment forced the banks to speed up the pace, and I am wondering if they will do the same, or prolong the pain. BofA needs to stop being so arrogant, and get with the program, otherwise they can look forward to being the largest holder of residential property in America. Eh, maybe that is their plan.
 
Buying time is the only viable solution available, and the government/fed is eager to help; e.g. backing the BSC deal. Stave off disaster for as long as you can, and wait for markets and earnings to recover enough to offset the red ink.
 
A real life experience regarding countrywide.



My coworker's 3 year ARM int only reset earlier this year and about 4 months ago he decided that its not worth it and he just stopped paying his mortgage.



He listed his 1 bedroom condo on the market and a couple of people offered 40k under the value of his loan with 40% down and excellent credit.



Countrywide always lost his paperwork and kept on reminding him that they can't process his short sale unless all the documents are complete. Truth is they were already in possession of all of this since day 1.



So now 4 months after, his credit is shot and he's living mortgage free and no one in Countrywide is interested in moving on with any paperwork.
 
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