A coworker asked me to see pics of the house so I went online to see if I could find an old listing of the house. (Usually on zillow, etc. They'll have it as unlisted but will show a pic of the front of the house.) Instead, I found a CURRENT listing of the house. You can bet I dialed the number on the listing to "inquire about the property."
Initially, the lady said it's an active listing, but when when she checked the MLS it was listed as pending and under contract (as it should be). That's when I told her "yea, I'm the buyer with the contract. Just wondering why you have my house listed for sale?" "It takes a few days for that to be reflected once it goes into contract. It should update soon." she says. "We've had an offer on this house since July 2010, and it's been off the market since the sellers accepted our offer 2 days after we submitted it...our offer had that contingency in it so no one should have it listed." She then went on to say that the MLS says it just went under contract in January. (Can you imagine the look on my face? Can you imagine how this pissed me off? It shuld've been listed that way since July.) And then explained that sometimes they will change the status of the listing from "active" to "pending but accepting back up offers."
Who knew there was such a thing? I hope to god this house was never listed that way. That could explain a lot about why they raised the asking price mid-game last month...6 months afer they "accepted" our offer of full asking price (at the time). Sneaky bastards. Criminals.
Friday, February 4, 2011
I think my head may explode
Those are the words I used this morning to explain my frustrations to our real estate agent and mortgage broker concerning the latest bit of news with the house.
Today is Feb 4. On Feb 2, we received what was called an "approval letter" from Suntrust. Relief and elation was quickly followed by a quick "wait a second..." upon reading the document. (Yes, more extreme highs and lows...and one right after the other.) There is a piece of it that is highlighted by arrows and stars that reads:
"...the approval is subject to the acceptance of short sale by the Bankruptcy Trustee or evidence of bankruptcy discharge."
The sellers declared bankruptcy in October - 3 months into this process - and it slowed things to a crawl. I thought things were picking back up and things were moving along recently, but I'm not so sure anymore. Again.
So back to why my head may explode. I asked our real estate agent what that verbiage in the letter means, and he said it means the circuit court still has to release the house from the sellers' bankruptcy proceedings. He just found out about that part of this yesterday. In the meantime, we just paid for an appraisal on a house that's still stuck in bankruptcy court. Nice, huh? I have no knowledge of the way things work in the bankruptcy process, but I've learned a lot about the short sale process...and it seems to me that the appraisal on a house that's still under bankruptcy litigation could play against us. What happens in bankruptcy court if they find out the actual value of the house (especially in this down market)?
Today, I am calling a real estate attorney to get some questions answered. Yes, I think my head may explode.
Today is Feb 4. On Feb 2, we received what was called an "approval letter" from Suntrust. Relief and elation was quickly followed by a quick "wait a second..." upon reading the document. (Yes, more extreme highs and lows...and one right after the other.) There is a piece of it that is highlighted by arrows and stars that reads:
"...the approval is subject to the acceptance of short sale by the Bankruptcy Trustee or evidence of bankruptcy discharge."
The sellers declared bankruptcy in October - 3 months into this process - and it slowed things to a crawl. I thought things were picking back up and things were moving along recently, but I'm not so sure anymore. Again.
So back to why my head may explode. I asked our real estate agent what that verbiage in the letter means, and he said it means the circuit court still has to release the house from the sellers' bankruptcy proceedings. He just found out about that part of this yesterday. In the meantime, we just paid for an appraisal on a house that's still stuck in bankruptcy court. Nice, huh? I have no knowledge of the way things work in the bankruptcy process, but I've learned a lot about the short sale process...and it seems to me that the appraisal on a house that's still under bankruptcy litigation could play against us. What happens in bankruptcy court if they find out the actual value of the house (especially in this down market)?
Today, I am calling a real estate attorney to get some questions answered. Yes, I think my head may explode.
Wednesday, February 2, 2011
Keyword: Anxiety
We saw another house yesterday, and although we did like the house we still prefer the one we have an offer on...the short sale.
Anyway, I received an email this morning that began with "Your approved short sale file has been forwarded to our Settlement Department. You will be receiving calls periodically to follow up on the closing."
The psychological ups and downs involved in this process have not been fun at all, and continue to threaten my sanity. Extreme highs and extreme lows. For example, today started on an extreme low after it sunk in that this short sale seems to really be "the one" for us because we kinda thought that house yesterday would be something to consider. Fairly depressing waking up realizing the rollercoaster ride continues for us.
So, this morning went from an extreme low of feeling defeated and depressed to a high when that email came through (implying) that the approval is on its way. Then, there's a reservation involved because you can't help but think..."yea...but is this serious this time??" It's terribly confusing and frustrating. And I cannot wait for this to be over.
Just a reminder: I am bloggin about this experience for a number of reasons. I don't write these things down in this forum just to bitch about them...I could use a notbook for that. It's therapeutic for me to write things down and reflect on them, but I do hope that our story will open eyes and be relevant (and helpful) to others.
Anyway, I received an email this morning that began with "Your approved short sale file has been forwarded to our Settlement Department. You will be receiving calls periodically to follow up on the closing."
The psychological ups and downs involved in this process have not been fun at all, and continue to threaten my sanity. Extreme highs and extreme lows. For example, today started on an extreme low after it sunk in that this short sale seems to really be "the one" for us because we kinda thought that house yesterday would be something to consider. Fairly depressing waking up realizing the rollercoaster ride continues for us.
So, this morning went from an extreme low of feeling defeated and depressed to a high when that email came through (implying) that the approval is on its way. Then, there's a reservation involved because you can't help but think..."yea...but is this serious this time??" It's terribly confusing and frustrating. And I cannot wait for this to be over.
Just a reminder: I am bloggin about this experience for a number of reasons. I don't write these things down in this forum just to bitch about them...I could use a notbook for that. It's therapeutic for me to write things down and reflect on them, but I do hope that our story will open eyes and be relevant (and helpful) to others.
Tuesday, February 1, 2011
Shoulds, Mights, and Maybes...Oh my!
When you're buying a short sale expect to hear a lot of "shoulds," "mights," and "maybes." Nothing is for certain, and the process is ever-changing. You'll hear these words a lot from your agent, from your mortgage broker, from the title agent, from the negotiators...from everyone. If there's anything you can expect, it would be the unexpected. And the only thing certian is the uncertainty of everything.
We looked at another house today, and we like it but there are more things we like better about the short sale home. If had never seen the short sale home, we would probably like the house we saw today very much.
So, it's back to more of the same...and "we should have an approval letter soon" and "it might come within the next couple weeks," "maybe." And so it goes.
We looked at another house today, and we like it but there are more things we like better about the short sale home. If had never seen the short sale home, we would probably like the house we saw today very much.
So, it's back to more of the same...and "we should have an approval letter soon" and "it might come within the next couple weeks," "maybe." And so it goes.
The difference between buying a car and buying a house
Most people who know me well know that I LOVE the process of purchasing a car. I love the research involved, and I really love going in there as an educated consumer to negotiate a great deal. I understand why other people dislike that process, but I truly get a kick out of doing it.
There is a process of negotiation involved in purchasing a house, too, but it is radically different. Another great piece of advice my dad gave me as he taught me the art of negotiation at a car dealership: "Do not fall in love with a car, and never let the salesman know you even like the car." I could go into detail about my strategy for negotiating a car, but that's not relevant here. Just know that I enter the dealership with a manila folder filled to the brim with info, and I know exactly what kind of car I want to buy with what options, etc. This way I cannot be swayed, I cannot be lied to, and I cannot be talked into anything like "the Florida package" or upgrades that "only add $5 per month to the monthly payment." (On a side note: Do you know what that $5 a month adds to the overall cost of that car over the lifetime of that loan with interest? Scary!)
The purchase of a house is the same...but different in a big way. Undoubtedly, you will find a house that is perfect, and it will be very easy to fall in love with it. And, it will be very hard to walk away knowing there's probably not another one like it...especially if there are other people submitting offers on that house. (Easy to think "it's MINE!" and keep bidding) With cars you can easily walk away knowing they produce thousands identical to the one you like each day. You can go back and try to negotiate again in a few weeks...even at at a different dealership the same day! That's not so with houses. It can be hard to walk away from something you like knowing you may not find it again if you do walk.
Similarly to buying a car when they tell you something just adds a few bucks to the monthly payment...it's also easy to talk yourself into a house that's above your budget if you do the math because: "What's another $2,000 -or even $10,000- when you're talking about something that costs hundreds of thousands of dollars anyway?" Interest is a big deal...and it adds up quickly. Don't forget that, and don't let anyone tell you any differently.
The short sale and bank-owned houses are even harder to walk away from because they're usually a great deal. Don't allow yourself to be bullied - regardless of what you're purchasing! I'll say this again: You're talking about mortgaging hundreds of thousands of dollars! (Check out where the term "mortgage" comes from...it's French.)
Although I have tried to keep my dad's advice about not falling in love with it, it has been hard not to envision living in this house we're trying to get. But still, we will go see another house today to keep our options (and our minds) open. Sooner or later, one way or another, this home-buying process will end for us. Who knows where we'll end up.
One of the biggest pieces of advice that I would give to homebuyers in this market is to keep your emotions in check. Do everything you can to avoid falling in love with a house, and don't be afraid to walk away. And don't threaten to do so unless you're serious. Do not move into that house (figuratively) until you've signed the closing papers...or received the all important approval letter in the case of a short sale like ours. (Even then, inspections can change everything.) I'm the pot calling the kettle black, but I'm telling you this because this is another one of those things that's easier said than done.
The difference between buying a car and buying a home is a significant one, and it's easy to get wrapped up in emotions. Stay strong. Here's to speedy closings!
There is a process of negotiation involved in purchasing a house, too, but it is radically different. Another great piece of advice my dad gave me as he taught me the art of negotiation at a car dealership: "Do not fall in love with a car, and never let the salesman know you even like the car." I could go into detail about my strategy for negotiating a car, but that's not relevant here. Just know that I enter the dealership with a manila folder filled to the brim with info, and I know exactly what kind of car I want to buy with what options, etc. This way I cannot be swayed, I cannot be lied to, and I cannot be talked into anything like "the Florida package" or upgrades that "only add $5 per month to the monthly payment." (On a side note: Do you know what that $5 a month adds to the overall cost of that car over the lifetime of that loan with interest? Scary!)
The purchase of a house is the same...but different in a big way. Undoubtedly, you will find a house that is perfect, and it will be very easy to fall in love with it. And, it will be very hard to walk away knowing there's probably not another one like it...especially if there are other people submitting offers on that house. (Easy to think "it's MINE!" and keep bidding) With cars you can easily walk away knowing they produce thousands identical to the one you like each day. You can go back and try to negotiate again in a few weeks...even at at a different dealership the same day! That's not so with houses. It can be hard to walk away from something you like knowing you may not find it again if you do walk.
Similarly to buying a car when they tell you something just adds a few bucks to the monthly payment...it's also easy to talk yourself into a house that's above your budget if you do the math because: "What's another $2,000 -or even $10,000- when you're talking about something that costs hundreds of thousands of dollars anyway?" Interest is a big deal...and it adds up quickly. Don't forget that, and don't let anyone tell you any differently.
The short sale and bank-owned houses are even harder to walk away from because they're usually a great deal. Don't allow yourself to be bullied - regardless of what you're purchasing! I'll say this again: You're talking about mortgaging hundreds of thousands of dollars! (Check out where the term "mortgage" comes from...it's French.)
Although I have tried to keep my dad's advice about not falling in love with it, it has been hard not to envision living in this house we're trying to get. But still, we will go see another house today to keep our options (and our minds) open. Sooner or later, one way or another, this home-buying process will end for us. Who knows where we'll end up.
One of the biggest pieces of advice that I would give to homebuyers in this market is to keep your emotions in check. Do everything you can to avoid falling in love with a house, and don't be afraid to walk away. And don't threaten to do so unless you're serious. Do not move into that house (figuratively) until you've signed the closing papers...or received the all important approval letter in the case of a short sale like ours. (Even then, inspections can change everything.) I'm the pot calling the kettle black, but I'm telling you this because this is another one of those things that's easier said than done.
The difference between buying a car and buying a home is a significant one, and it's easy to get wrapped up in emotions. Stay strong. Here's to speedy closings!
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