short sale buying frustration

**waywardtom** · 02-05-2010, 11:52 PM

looking for advice regards buying a short sale house from trustee/LA that does not want to sell.

am in real estate limbo. last june put a backup offer in on a short sale "under contract" in riverside county, CA. that contract was the 2nd which went the way of the first contract (fell out) last may. in august my offer was in process (counter offer signed by all parties). the LA somehow considered the offer status as "under contract" with me and with the house accepting backup offers, even though escrow never opened. in september, i submitted a new offer -decrease in price- due to recent comps. the LA went into ignore-the-buyer or i-don't-want-to-sell-this-house mode.

meanwhile the house went up to auction in october. it was postponed until early january. then that auction the sale was postponed until march.

would love for the house to be "sold to beneficiary" at auction, then REO, so i could buy it already. as i understand it, the house is controlled by the trustee for the first lien holder. (there is a second, chase bank.) there is a loan servicing company -ASC- which wont talk to me w/out permission of the home owners (who haven't lived in the home since may). the first lien holder, its license was revoked by the state. so who holds the first? from researching the county recorder, i cannot tell. and i have written the trustee to no avail. LA refuses to ask owners for written permission for me to speak to loan servicing company.

i would think the LA would have counter offered at a higher price... the LA is well aware i am still interested. i wish i new who holds the bag on the first lien, who wants "their" money...

i have only used this one agent. she has emailed and phoned the LA on various occasions since the original offer over the last 7 months.

other than "buy another house" (have put offers on 3 houses) any advisement on going about this another way?

**Chrisopher Moltisanti** · 02-06-2010, 04:41 AM

It sounds like it's going to go to auction so the trustee is hopeful to get more out of it than what you offered (the 2nd time). Who's the first lien holder? What's the difference? This house is going to auction it sounds like to me. There doesn't seem to be another way to go since you sound like you want it really bad. Also, if it's a short sale, the bank is going to control everything at that point. Auction? List it with one of their many, many brokers? Let it rot? Etc. The bank is controlling the whole thing man.

Greg will probably tell you why it's going to auction, as I don't have the experience; but he sure does. Just be patient and maybe he'll respond.

CM

**waywardtom** · 02-07-2010, 02:48 PM

BrooksAmerica Mortgage holds/held the first. $612k on the first lien. 1st offer (mine a back up offer) at $435k under competitive bidding. but my original offer was "accepted" at $425k which was the price at which previous contract was, which was the asking price to begin with. my 2nd offer put it down $60k.

the house has gone to auction twice, each time postponed. if the trustee wanted to take possession they would have taken it at auction with the usual opening bid at first lien amount; for it will not sell for close to lien. first auction was mid october.

i'm looking at a professional negotiator. my broker wants me to use cory brothers, who would then resell it to me at whatever markup (and not offer it to their other buyers?? i don't think so.). my first response to this was a slight laugh. then upon a little homework, i laughed a little more.

**Greg** · 02-08-2010, 06:18 AM

The LA is ignoring you because the deal is dead on their end. I have an offer for a client out there in limbo with the same scenario. The bank and the seller have given up so it is only a matter of time before it comes on the market as a foreclsoure.

When it does come back on the market as a foreclosure make sure you are ready for the competition. Short sales that end up as foreclosures tend to generate competition, and you already know there is at least one other person who wants to buy the house.

If you are getting a loan then fill out and submit the loan application and get pre-approved. This is different than getting pre-qualified and makes a world of difference to a seller.