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Bank short sales-how do they work?

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Bank short sales-how do they work?

Old 05-23-2010, 04:29 PM
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Default Bank short sales-how do they work?

Have been looking for a new (used) boat for the past 2 moths or so. Sold our previous boat and after looking at lots of rides- some good some not so good-targeted a nice 2002 twin diesel that fit our needs and budget. Short sale about 900 miles from me. Put an offer in, the broker gets back and says the owner can live with it but the bank wants 'X'. I agree to 'X'-cash no financing, arrange for flight down, set up surveyors for hull and engines, arrange for boat transport, wire 10% deposit and sign P&S. Owner signs P&S and sends it to bank for their signature. At the 11th hour broker calls and says the bank says no deal any more. Broker is trying to find out what the problem is.
Something I'm missing here? Wasted 3 weeks chasing the boat, non-refundable plane ticket and lots of wasted time. Are short sales typically problematic?
Thanks
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Old 05-23-2010, 05:54 PM
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find one that has allready been forclosed on,short sales are a pain in the azz and always take at least 3 months to close on,even if your a cash buyer
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Old 05-23-2010, 09:16 PM
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Find out 'who' at the bank says no deal, then go over his/her head ...
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Old 05-23-2010, 09:58 PM
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Originally Posted by Curmudgeon View Post
Find out 'who' at the bank says no deal, then go over his/her head ...
Tell your broker you want to talk to the bank directly. Broker may resist but as long as you agree to keep the broker in the deal he loses nothing. Get the bank to tell you what happened and what is needed to finish the deal - then you decide.
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Old 05-25-2010, 09:41 AM
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Let's see bank short sale.

Somebody buys more than they can pay for, screams like a little girl, runs away from their obligations and leaves everyone who does pay their bill holding the tab. You are now finding that out firsthand.

Now to answer the question that you are really asking. Unless that boat is a super deal/steal it is gonna be a real heart ache to buy.
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Old 05-25-2010, 09:52 AM
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I found a boat on CL and, after talking with the owner, decided that it was a really good investment. He had already allowed the repo boys to take it to a marina, so I contacted the marina; I was told that they couldn't even allow me in their yard. I would have to talk with the bank. The bank had already pulled the foreclosure card and the boat was going directly to National Liquidators, despite my offering to buy the boat for what was owed.
A short sale gives the seller some wiggle room. Seems that larger banks have no such policies once a foreclosure is in play. This bank was Bank of America
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Old 05-25-2010, 10:10 AM
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Thanks for all the input guys. Deal has fallen apart. All I can make of it is the bank backed out of their original argeement to the seller and broker (and ultimately me) Boat will likley go to forclosure where it seems everyone looses. It would have been a very good deal but for someone else now as I need to start looking again........
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Old 05-25-2010, 10:12 AM
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Send them your non refundable airline ticket with a bill and a copy of your accepted deal.
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Old 05-25-2010, 11:01 AM
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Default It wont help. The banks are holding instead of cutting their losses

Originally Posted by Curmudgeon View Post
Find out 'who' at the bank says no deal, then go over his/her head ...
Most banks have been bailed out in one way or enougher. Cash they didnt even ask for and money so discounted by the fed that its free. Then they are charging the people that have run into financial problems 18%atleast or a lot more depending on how bad their credit rating is. I tried to by a house short last year and after proving I had the cash for the deal at their request and jumping through hoops a few times. I did come up a little at their request. I walked away and the house is even in worst dis repair with even more municipal taxes unpaid and a mid management guy that I thought was looking for a hand out.The bank was also one of those on the recieving end of tarp crap or whatever. I have a friend that bought a couple new boats short from dealers going out of business. he said the same thing is happening with him.
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Old 05-26-2010, 05:16 PM
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Default If this don't beat all!

So after all is said and done - the boat I thought I had a deal on as a bank short sale - is now back on the market with the 'Short Sale' designation removed and the price upped by $30,000 over the previous listed price and $40k over the price I was told was needed (and I did meet) to close the deal the first time. Go figure.
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Old 05-26-2010, 05:42 PM
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Offer $45K below asking with a cash offer and a 5-day window. Contingent on inspection within 48 hours.
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Old 05-26-2010, 06:04 PM
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bamaboy - that's basically what I did the first time around. Cash deal at the bank's first counter offer to my initial offer, the balance of the terms were the standard surveys and acceptable sea trial. Got a verbal from the broker that my offer was accepted and we started passing papers around for signatures. During that time I got the plane tic, got 2 surveyors lined up and a boat hauler set up for an early June delivery....
All in all a huge waste of time if not a mis-representation of what the bank/seller were trying to sell and for what price.
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