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 #636943

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....

 

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Tags:
short sales
foreclosures
condos
hoa
fees
ownership
bank practices
bankruptcies

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Rainer
57,002
Cindy Logan
Logan Economic Achievement Programs - Irvine, CA

The bank cannot sell the property without the homeowner's consent, even after a bankruptcy.  And, here in CA, the bank gets charged if the homeowner doesn't pay.

 

If my first statement is untrue, is there a way around a foreclosure without the homeowner's consent?  The bank (B of A) said no; it would be like them selling the homeowners's home from under them.  The sellers won't deal with it; they've been out for 2 years; moved to another state.  The home is now stripped, nothing going on.  And the bank won't accept an offer without the homeowner providing all the necessary documentation.

May 21, 2011 11:09 AM #1
Rainmaker
1,273,097
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Cindy....you bring much to think about in this for ever changing arena....This industry is being re-defined and keeping up with all the changes requires commitment  to the subject matter...your comment demonstrates that...thank you

May 21, 2011 11:35 AM #2
Ambassador
839,130
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Richie, the whole thing is very confusing. If the owner abandon's the unit but the bank hasn't officially foreclosed it does seem strange that they could auction the property.

May 21, 2011 07:20 PM #3
Rainmaker
1,273,097
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Connie I can see that too....the bankruptcy may have thrown the whole thing off as it had jurisdiction over the asset is one thought. Another thought...  Making the current owner liable before bankruptcy court for all debts and then perhaps getting the court to then wipe them out is all I can think of. Meanwhile, the bank is trying to line up a buyer during all this thus avoiding being owner of record and dodging fees and responsibilities.....If they were trying to mitigate losses, this is penny wise but pound foolish to me. Another chapter in the Real Estate foreclosure mess. When will it all end...? Thank you Connie

May 21, 2011 07:34 PM #4
Rainmaker
515,561
Kevin J. May
Hobe Sound, FL

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 #5
Ambassador
666,312
Ann Allen Hoover
RE/MAX Advantage South - Hoover, AL
CDPE SRES ASP e-PRO Realtor - Homes for Sale - AL

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 #6
Rainmaker
1,273,097
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

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 #7
Rainmaker
1,088,276
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

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 #8
Rainmaker
1,273,097
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

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 #9
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Rainmaker
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Richie Alan Naggar Author PEARLS SERIES of books

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