Purchasing A Short Sale Home

Discussion in 'Off-Topic' started by CloneSolo, Mar 6, 2011.

  1. CloneSolo

    CloneSolo Member

    Feb 11, 2010
    Marion, Iowa
    Hey Fanatics,
    My wife and I just moved back to the Eastern Iowa area and are looking to purchase a home. We found a one that she really likes, but it happens to be a short sale. I have heard lots of horror stories about these, and wanted to get some thoughts on them.

    Thanks in Advance:yes:
  2. SvrWxCy

    SvrWxCy Well-Known Member

    Aug 6, 2010
    My wife and I just purchased a house... We looked at a couple of short-sale homes, one thing that the realtor stressed to us is that if we went ahead with purchasing a short-sale home be prepared to wait.

    Depending upon the bank and the current loan holder, etc. it could be months before everything is cleared; or you could be lucky and have it only take a few weeks. All depends upon the situation with the bank and previous owner, etc...

    Maybe you can ask your realtor if they know anything about the bank that owns the loan, if they are local they might be easier to deal with.
  3. jsb

    jsb Well-Known Member

    Mar 7, 2008
    I'll second the waiting thing. I know someone who made an offer in March 2009 and it wasn't accepted until November 2009.
  4. CylentButDeadly

    CylentButDeadly Well-Known Member

    May 1, 2009
    Windsor Heights, IA
    Coming from someone who worked at Wells Fargo and dealt with customers trying to buy short sale homes, you're going to get a lot of head aches and it's going to be an arduous, drawn out process. I don't know if Wells Fargo is the lender you're dealing with, but if they are, you're going to be frustrated.
  5. Cyclonepride

    Cyclonepride Thought Police
    Staff Member

    Yeah, my wife is an office manager for a real estate agency, and she has mentioned that those things take forever to sort out, and there are invariably tons of hoops to jump through. I guess if you go in with that in mind, and are prepared for the process to take some time, it could be worth it.
  6. CylentButDeadly

    CylentButDeadly Well-Known Member

    May 1, 2009
    Windsor Heights, IA
    Don't let me deter you. I have two separate friend couples that are/were newly-weds and purchased short sale homes and after the initial head aches, they wound up with great homes that otherwise, might have been out of their price range.
  7. Three4Cy

    Three4Cy Well-Known Member

    Jan 19, 2010
    West Des Moines
    If you plan to offer, make sure you find out if there are any other offers on the property. Your real estate agent won't be able to tell you the dollar amounts of those offers, but you will know if you are competing against someone else.

    You will most likely only have one shot at the property, so you need to put in your best offer up front. When I worked mortgage and dealt with short sale offers, most of them were rejected for just flat out low ball prices, or lots of lender concessions, especially lots of money in closing costs.

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