SHORT SALES....THE STORIES JUST KEEP ON COMING

By
Real Estate Broker Owner with People first then business! Ran Right Realty Riverside, Ca BRE LIC #00636943

I was made aware of the following Short Sale story regarding a condo unit. It appears that the owner of the condo stopped paying the bank and the home owners association and then went into bankruptcy before the association could put a lien on the unit

The owner never successfully was able to deal with their bank and consequently all short sale offers were rejected and the unit remained unsold. But the bank did an interesting thing...

It put off foreclosing as long as it could and instead was trying to auction the unit off before triggering and then finalizing the foreclosure process

This tactic enabled the bank to not have to keep the unit up, pay HOA fees and not be responsible in any way since the unit didn't officially belong to them..

For the other condo owners, this put a big strain on them as they had to pay extra $$ to make up for the loss of the fees from this one unit....

When you take foreclosure, add a bankruptcy to it, throw in some HOA dynamics and the community at large, things can become worse and complex until righted...everyone suffers as a result.

This type of thinking may be around for a while....

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the flag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Location:
California
Tags:
short sales
foreclosures
condos
hoa
fees
ownership
bank practices
bankruptcies

Comments 9 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the graph to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
476,933
Kevin J. May

In some situations bankruptcy is the best option for the former owner to survive the trauma, and for many it is just that, a huge trauma.  Not necessarily a recommended tactic for all.  

May 21, 2011 10:10 PM
Ambassador
663,500
Ann Allen Hoover
CDPE SRES ASP e-PRO Realtor - Homes for Sale - AL
RE/MAX Advantage South

I agree that this is so confusing and messy......and it's hard to keep up with the madness!

May 22, 2011 08:30 AM
Rainmaker
1,113,209
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

Hello Kevin...agreed...bankruptcy can be a tool and as a sword, it can cut both ways.....

 

Ann....Short Sales are like a shark tank when someone throws in a piece of meat and then everything that is hungry comes out...Investors trying to suck marrow, banks looking to plug leaks and mitigate their losses and learn how to do do it while they are doing it and the homeowner who is trying to get back monies lost. In other words, a feeding frenzy. Add a buyer to it and you have our current state of affairs which will be with us for a while...Annie...get your gun!....best

May 22, 2011 10:02 AM
Rainmaker
1,001,851
Ginny Lacey Gorman
Homes for Sale in North Kingstown RI and beyond
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate

Richie, i do short sales but find them frustrating...i'm still waiting on an approval letter on one the bank agreed to 3 weeks ago..it is nauseating dealing with the banks!

May 22, 2011 11:54 AM
Rainmaker
1,113,209
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

Ginny...I outsoruce my SS. Money well spent becasue it can suck the life blood right out of you..Think: the bank is playing the Vampire role and well....you know everyone elses role.....

May 22, 2011 02:37 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
1,113,209

Richie Alan Naggar Author PEARLS SERIES of books

on LIFE and LOVE plus Real Estate too!
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: