Sequim shorts sales are chaotic. I’ve written before about the very unorganized short sale process and all the parties involved. Because of the chaos, I’ve written more than once that the first place you should look as a buyer is anywhere but the Sequim short sales. Here’s a brief update on what I am seeing in Sequim short sales.
Sequim Short Sales – Good Deal or Not
I had two short sales transactions flip this week. One house was on the market for a little over $90,000. That was the listing price, and it had been reduced from a higher price because there was no interest. Supply and demand drove the listing price down so that this first time home buyer finally made an offer. The seller accepted it, but when it went to the bank’s negotiator, here was the crazy response. This response from the bank’s negotiator is why I say to buyers that Sequim short sales are not the best place to look for a home. Often you can’t buy a short sale even when you offer full listing price. Notice the incredible arrogance of the negotiator. He also adds completely new terms for the buyer without any negotiating.
Please review counter. I have countered to $134,000.00 the lowest contract price I can accept from the buyer in order to approve this short sale (based on the fees provided. If additional fees are added, this contract price may be adjusted). This is the only counter you will received with regard to this short sale offer. Any contract price that is lower is subject to be reviewed by the investor, and/or immediate denial. Any decision by the investor will be considered final. Do not submit any offer other than buyer’s highest and best, final offer.
A contribution from the seller has been requested in the amount of $7,500.00, (or promissory note for double the amount). This amount is 10% of the investor’s expected loss based on this short sale offer. This amount can be accepted, or countered by the seller, based on their participation capability. However, a contribution may be required for short sale approval. With an appropriate contribution, the investor will waive the deficiency balance following closing of the short sale.
The buyer had pre-qualified for a 100% first time home buyer USDA loan, so it is just beyond unreasonable for the bank’s negotiator to demand a price that they could not get for the past year while it was listed, and then to require the home buyer to come up with $7,500 to boot. This deal is dead. So much for Sequim short sales.
Sequim Short Sales – Not
The other short sale that flipped for me this week was also strange. My clients also offered full listing price. The person in second refused to negotiate the amount owed to her, which was about $18,000. Instead, the first will probably be foreclosed, and the second will be wiped out, at least the security interest. In other words, the person holding the second loan on the property just shot herself in the foot, because she will now get nothing after the bank forecloses on the first mortgage.
Sequim Short Sales Are One in a Thousand
This is more proof that Sequim short sales are chaotic and very difficult to buy even when you offer full listing price. Now if you see the one dream home and it happens to be a short sale listing, that doesn’t mean you should not make an offer. It does mean that you should get ready for a challenging two to three stressful months, and don’t pin your hopes on this home, because the negotiator may kill the transaction even if it makes no sense for him to do so. And lastly, I strongly urge that you work with an experienced buyer’s agent who does know how to work through the labyrinthian process of buying a short sale. And there you have it: Sequim short sales.
Last Updated on November 26, 2012 by Chuck Marunde