cramon76
Posts:3
 |
| 07/25/2008 3:52 PM |
 Alert
|
http://www.sdlookup.com/MLS-088024380-3802_Hilltop_Dr_San_Diego_CA_92102
I'm a newbie. I'm looking at this offered short sale, and see that it sold 3 years ago for 465k, and its offered today at 265k. I'm wondering how likely a bank is to take 265k. Does the person who's trying to get out from under work with the bank to determine a list price? I wonder how likely an offer of 265 is going to be accepted. I wonder if an offer of 250 would be accepted. Any help from all of you fabulously intelligent folks would be appreciated.
Carlos
|
|
|
|
|
|
|
UnsureBuyer
Posts:212
|
| 07/25/2008 4:03 PM |
Alert
|
hello carlos... I would check that zip code for recent closures: Click on the Home Values link at the top of the page and enter that zipcode (92102). That'll give you an idea of where the prices are headed. Keep in mind that a lot of those prices were negotiated at least a month ago. Then look at the area for comparable listings (price per square foot for a similarly sized house, other houses in that price range, etc).
Generally if the listing doesn't say: "Lender has agreed to current price" (or something similar), the price range on the listing is meaningless. From my own experience, I can say that most short sales are a waste of your time. I'm not convinced that the banks are serious about most short sales. |
|
|
|
|
jpinpb
Posts:1465
|
| 07/25/2008 4:05 PM |
Alert
|
| carlos - Just b/c it sold for 465 3 years ago means nothing. It could be that they took a HELOC for more money. Many short sales don't go through b/c the second won't approve the short sale. There could be other liens on the property as well. Short sales stay listed for a long time. They string the buyer and seller along, trying to get more money from seller and trying to get higher bids from buyers, but in the end, few close. |
|
|
|
|
jpinpb
Posts:1465
|
| 07/25/2008 4:11 PM |
Alert
|
| It says "subject to approval" so the bank can just take their time on it - and they do. |
|
|
|
|
LoonyQT
Posts:899
|
| 07/25/2008 4:17 PM |
Alert
|
My experience with the short sales is once the potential seller is desperate, the realtor will lower the price to below current market value to drum up as much interest as possible in a short time to get as many offers as possible to bring to the bank. That way they can say they have been proactively attempting to sell the property and the market will bear the price point of whatever offers come in.
What I've also seen happen is that often the bank takes its sweet time to reply, BUT eventually whatever the highest offer was becomes a true approved short sale pricetag (as the original prospect has already walked by this time). Unfortunately, that price may now be too high because the market slipped further...
The banks are trying to work more short sales from what I can see, but most are still getting foreclosed. |
|
|
|
|
Brian
Posts:2244
|
| 07/25/2008 4:37 PM |
Alert
|
Also something else to consider.
Banks don't own the loans that they service.
1) For the bank to approve a short sale, they need to communicate with the investor who owns to loan to see if he will take the write-off. What's in it for the bank? The negotiations are a pain and communicating with unknown investors is even harder.
2) But if the bank forecloses they get to bill a fat servicing fee the work, per the servicing contract. That's bonus money that goes into the pocket of the VP of the REO division. A commission is also paid the REO bank officer for doing a great job. It's also servicing fees that flow directly to the bottom line of the Bank (money they can report at Income for the quarter).
Remember that there are diverging interests that are in conflicts within any bank/organization. Whoever generates the most up-front fees wins.
|
|
|
|
|
LoonyQT
Posts:899
|
| 07/25/2008 4:39 PM |
Alert
|
| I love you Brian. Your posts are always so invigorating. |
|
|
|
|
jpinpb
Posts:1465
|
| 07/25/2008 4:51 PM |
Alert
|
There's a lot behind the scenes. Thanks, Brian, for providing us continued information. I see "short sale" and I just make a note and wait to see what happens, unless I get emotional and it's a place a love - trying to curb that. If it's a rare short sale that goes through, brings down the comps. If it gets forecloses, wait to see when and what the bank ends up selling it for. My list is getting long. I used to make offers on short sales. Now I don't bother.
QT - watch it. Your stalker might get jealous :0 |
|
|
|
|
cramon76
Posts:3
|
| 07/25/2008 5:03 PM |
Alert
|
Good to know. I appreciate your diverse perspectives. On to my next question.....
Should I buy a house?
I know there is a HUGE difference of opinion on the matter across the board. I believe home prices still have a ways to fall. I'm looking at homes in the low to mid 200's range though. (I'm a city person. I like the city. That's what I can afford) I don't think homes in that price range have that much further to fall. (I could be totally wrong.)
My real concern is whether I can afford it. I've got 26k making 3% in the bank. My wife and I have a combined net income of $3600. No credit card or automobile debt. Pay about $100 a month on our student loans.
So, I know I'm gonna have to pay PMI, taxes, maintenance, and new utility bills. I'm trying to figure out what my monthly nut is going to be and whether I can do it.
BTW, whats the rate used to figure property tax? (Sorry! I'm new!)
Thanks!
Carlos
|
|
|
|
|
UnsureBuyer
Posts:212
|
| 07/25/2008 7:24 PM |
Alert
|
Free financial advice is worth what you pay for it :).
However, doing some research on your own will really give you a solid foundation upon which you can make informed decisions (with or without free/paid advice). Start with something basic like a mortgage calculator. Maybe google up something like "true cost of home ownership" or "mortgage calculator."
I'm assuming the 76 is your birth year. You've got another 30+ years of work life ahead of you. You'll want to invest with both the long and short term in mind. I like listening to Marketplace on public radio. There's a section on their website called Marketplace Money. There are a bunch of tools there like savings calculators, retirement calculators, mortgage calculators, budget analysis, etc.
Marketplace
Take a look! :) |
|
|
|
|
jpinpb
Posts:1465
|
| 07/25/2008 11:35 PM |
Alert
|
| I love Marketplace. Learn something new every day. Great information. Sometimes their advice is too ideal and hard to follow, I find. |
|
|
|
|
Brian
Posts:2244
|
| 07/26/2008 12:07 AM |
Alert
|
I like Marketplace also but the format of the show is a little too "light and breezy" for me. I would rather have a Nightly Business Report type show. But Marketplace is a good show.
Carlos, considering your income, and your down payment, I don't think you should buy a house yet. If you buy now, you could see you downpayment wiped-out and end up upside-down. That will hurt and it will take you a long time to recover.
Continue to watch the market and buy only when you feel very comfortable about it.
Here's a prediction from Fitch Ratings on the drops that we will see in the next 5 years, in addition to the drops we already experienced.
http://www.housingwire.com/2008/07/24/fitch-updates-ratings-model-projects-steep-price-declines/
“Some MSAs such as San Diego and San Francisco, CA are expected to experience home price declines by as much as 47 percent and 33 percent over the next five years, while home prices in MSAs such as San Antonio, TX are expected to appreciate by 7 percent,” Somerville said.
|
|
|
|
|
cramon76
Posts:3
|
| 07/26/2008 12:48 AM |
Alert
|
marketplace is a great show. i've been listening for a long time. i remeber when david brancacchio hosted before he went on to do california connected. been too long since i've caught up with that show. (of course i don't pay for dvr otherwise i'd watch it every week.)
buying a place is such a tempting thing. to add to it all, i'm expecting a baby girl in a few months. she'll be my first kiddie. i'm feelin all these pressures to settle in.
i'm definitely going to keep watching things and try to nail down exactly what my costs are going to be.
car
|
|
|
|
|