I hate Metro Detroit short sales because it is such an iffy proposition and it takes so long to get an offer. But one of my clients wanted to put in an offer on a short sale. The home is in redemption period. August 12 it becomes the banks property and the homeowner will lose all rights to the home.
It is a house that is over a hundred years old, needs updating, and has many projects in the home that are unfinished. The home will take lots to sweat equity to bring up to be a "decent home" But somehow the homeowner has gotten an investor involved. We put in an offer of $110,000that we thought would be submitted to the bank. But low and behold the listing realtor called me and said they have a counter offer from the "investor client" Now remember that the house has already been bought back by the bank at the sheriff sale. They are just waiting to take it back over after the mandatory 6 month redemption period. (the homeowner would have to come up with $187,000 to pay off the sherriff sale price.) Here is what I emailed to the listing realtor.
I know the investor is your client,BUT this is the dumbest thing I have run across in a long time. This homeowner is in the redemption period with about 80 days left. Short sales are tough enough to get through with out involving a third party who has no regard for helping the homeowner, but only to help line their pockets. I don't know how this investor is getting paid but it is not going to be by negotiating with my client. We will be willing to submit our offer of $110,000 to the bank and see what they say but my client does not want to go any higher.
If you don't get a solid offer within the next 4 -6 weeks you are not going to close it before the redemption period ends. Your investor loses and the homeowner does too. Let me know if you and your client are willing to let the bank decide. If not we are walking away from your counter offer.
What do you Active Rainers think? Isn't this the dumbest thing you have heard of too? I can't believe this poor homeowner has created more problems by getting a third party involved with this Metro Detroit short sale
For more on Michigan real estate go to my website www.Russravary.com You can search over 60,000 Michigan homes for sale and many Michigan foreclosures.
have a great day!
__________________________________________________________
My Month of April quote:
"Sometimes the only way to get to the far shore is to lose sight of the shore you just left"
Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
Unbelievable.
Russ, I caution every buyer I encounter to not get involved with a short sale. I'm hearing only a 10% to closing rate. The nightmare stories are daily.