short sale homes
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    short sale homes

    I was curious to hear people's stories, good and bad, and any other advice regarding buying a short sale house. We are house hunting and have seen quite a few short sale houses for sale.



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    Re: short sale homes

    Dont even bother if you're on a tight schedule, it will take forever to get responses back. When the wife and I moved to Denver we had 5 days total to find a house and agree to terms so I basically told the realtor no short sales and no foreclosures.



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    Re: short sale homes

    It's a long process. That's if there is just one lien on the house. If there is a 2nd loan or more then it'll take longer. IF you're looking and on no schedule then you'll be fine. If you're wanting to move in in the next month or two, you might as well forget about it.

    If you are buying a SS house you are also buying it's problems. It'll have to be bought "as is." Chances are you're getting a decent deal on it. So, if there are repairs to be made you should be able to take care of them on you're own, depending on what it appraises for.

    Freddie has a sight for properties that they've foreclosed on. You can find some nice properties on there. A lady I work with did that and saved about $100k.



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    Re: short sale homes

    If you dont have a tight schedule, it can be a great deal. Friends of mine saved a ton by going the short sale route (saved about $50k). Luckily for them the process with the bank wasnt as long as it can sometimes be.



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    Re: short sale homes

    Quote Originally Posted by thuisman View Post
    I was curious to hear people's stories, good and bad, and any other advice regarding buying a short sale house. We are house hunting and have seen quite a few short sale houses for sale.
    Do you have 4-5 months?

    The price and negotiation are approved by the seller's lenders' LEGAL department.

    Every list price, offer, counter-offer, or lowering of the listing price goes through the LEGAL department of the seller's lender.

    The listing agent becomes a messenger....they have very little power over negotiations. They just shuttle your offer(s) and other paper-work to the legal department of the seller's lender

    We just went through this from November last year to March to buy as an investment

    If the seller has a hard time making payments, they might be letting a car loan or credit card accounts go into default. These accounts many times go from a collection---to a judgement, which become a lien problem on title work

    If you finally ever get an offer accepted, first make it 'subject to' acceptable title work.

    Order a preliminary title opinion after the abstract is updated. This will show the current liens on the seller/property. Don't waive your right to an INSPECTION (not an appraisal) These two items will give you an 'OUT' if strange liens show up or a major flaw in the home is discovered.



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    Re: short sale homes

    Pay for an inspection.


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    Re: short sale homes

    Quote Originally Posted by burn587 View Post
    Dont even bother if you're on a tight schedule, it will take forever to get responses back. When the wife and I moved to Denver we had 5 days total to find a house and agree to terms so I basically told the realtor no short sales and no foreclosures.
    5 days?!?! You crazy man.


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    You have almost 5 crap tons.

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    Re: short sale homes

    Quote Originally Posted by Jambalaya View Post
    Do you have 4-5 months?

    The price and negotiation are approved by the seller's lenders' LEGAL department.

    Every list price, offer, counter-offer, or lowering of the listing price goes through the LEGAL department of the seller's lender.

    The listing agent becomes a messenger....they have very little power over negotiations. They just shuttle your offer(s) and other paper-work to the legal department of the seller's lender

    We just went through this from November last year to March to buy as an investment

    If the seller has a hard time making payments, they might be letting a car loan or credit card accounts go into default. These accounts many times go from a collection---to a judgement, which become a lien problem on title work

    If you finally ever get an offer accepted, first make it 'subject to' acceptable title work.

    Order a preliminary title opinion after the abstract is updated. This will show the current liens on the seller/property. Don't waive your right to an INSPECTION (not an appraisal) These two items will give you an 'OUT' if strange liens show up or a major flaw in the home is discovered.
    I think this has changed up, many banks are now allowing houses to go up as a SS and as long as offers are pretty close to the amount the bank set up initially, it will get sold. I think Bank of America is one of the leaders in this now. They have centralized a department to handle these situations and supposedly cut down on a lot of time. I do not work for Bank of America, in fact I am not a big fan of them after owning their stock.



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    Re: short sale homes

    Quote Originally Posted by Hawkeye11en1 View Post
    Quote Originally Posted by burn587 View Post
    Dont even bother if you're on a tight schedule, it will take forever to get responses back. When the wife and I moved to Denver we had 5 days total to find a house and agree to terms so I basically told the realtor no short sales and no foreclosures.
    5 days?!?! You crazy man.
    Had a really tight schedule with my wife's job. Found out she got it in mid march, and she started in mid june. Saw 30 houses in 2 days, offer accepted on the 3rd day and home inspection done on the 4th. I would not recommend it to anyone but it is doable if you really know what you want and what you're willing to give up in the process.



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    Re: short sale homes

    Quote Originally Posted by Hawkeye11en1 View Post
    5 days?!?! You crazy man.
    I've been in a similar situation. Flew to TX (Day 1), "Interviewed" for my current job (Day 2), Met with agent and viewed ~12 houses (Day 3 AM), Made offer (Day 3 afternoon), and flew back to Iowa (Day 4). Moved in just under two months later.

    It was fast but when you don't have time to come back a time or two to look around you make it work.




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