Upcoming Foreclosures

dead deal? this is a bank approved short sale?

So here's our short sale story. We placed on offer on a short sale the beginning of this month, and a week later we were countered on the sales price...which we accepted. Escrow was opened the next day. Our appraisal came in $2000 below our purchase price, that went back to the bank and they agreed to lower it by $2000. Now we are all cleared for loan docs and we were told yesterday there is a $21,000 property tax lien on the property! Obviously we are not paying for it.....now it has to go back to the bank to get renegotiated to see if they will pay for the tax lien. Our agent was told by the other agent she doubts the bank will pay for the lien.....the other agent is thinking the bank will re-list it at a higher price. My questions are: 1. our appraisal came in at $308,000...can they sell it for more? 2. Will anyone buy it at a higher price or does the bank want the home to go into foreclosure then sell it that way? 3. Do you think there's a possibility of the bank sucking it up and pay the lien? we have loan docs and we truly love the house and the area it is in. I'm tired of looking at houses, we were having no luck with bank owned properties (always getting out bid or no counter since we are doing FHA) and now it seems we can't even buy a short sale. we are in southern california and it's not an attorney state. we have a RE agent and escrow handling the deal. our agent has been hounding them for an answer and she told us our next step would be to contact a RE attorney since that contingency was not in the contract.

Public Comments

1. 1) Yes, they can sell at a higher price. The next appraiser can come up with a different value AND some people actually want a home badly enough that they’ll pay the difference between an appraisal amount and the sales price. Yes, it’s stupid, but it does happen. 2) What the bank wants is to recoup as much as possible. They don’t want it to go into foreclosure, but they’re also reluctant to take a cut like this. 3) Of course there’s a possibility. There’s just no way to tell you how likely it is.
2. Yes, dealing with bank as owner, or banker approval for short sale, requires much patience and perseverance. Bank should have been aware of tax liens, and should be willing to sell house to get it off their books. Unless they think your appraisal was suspect, they won't be able to get more for it, except in a cash deal. So don't give up on it yet. But your attorney should be calling them twice a week now--don't have one for biggest purchase of your life?