Broker negotiated shortsale?

[Anonymous]

Anyone have any experience on these?  We put in an offer on a house this weekend that is a prenegotiated short sale through a broker. Apparently what happens with this is that the broker purchases the house from the bank, then turns around and immediately sells it back to us for a profit.  I'm ok with this, this is a great house, great neighborhood and has everything we really want in a home.

My understanding is that this has to be completed through the 100% USDA financing due to seasoning issues.

We started with an offer of $143,000 plus seller pays closing costs, to close on April 30. 

The sellers agent returned to us this morning a counter offer of $152,000, them paying closing costs and closing by March 31st.  Is it remotely possible for closing to go THAT fast?????  Especially with a USDA loan? 

We have hired a real estate attorney to protect our interests, and my mortgage broker and realtor are great.  They're saying there is no way to close on this house within 22 days. 

I would appreciate any information anyone has on this situation.

Thanks Again!

[Jazzzy]

Have you even applied yet? It's tough to see how a USDA closing could move that fast.

As to the loan, there are certain kinds of loans that won't work for house flipping. Apparently USDA doesn't mind flippers. Some loan programs won't accept flipped houses (for the protection of the buyer).

[Anonymous]

We've got the prequalification letter for it, but no, we haven't completed any actual applications for it. 

[Anonymous]

Hi,

you can submit an offer without even being approved? If so can you tell me how you do it...Im also going USDA, I have been prequalified for 227k but did not submit a full application because I had a few things to fix on my credit which I did and now Im just waiting till next month for my scores to increase .. I have a house Im interested in, how do I go about submitting an offer? Thanks

[Anonymous]

The offer process goes like any other offers.  We had a prequal letter to show we would be able to get financing.   BTW, This house fell through.  The brokers screwed around about a week or so until they got a cash offer in.

[Anonymous]

Im sorry for so many questions, but how did you get the pre-qual letter, from who? I spoke to the USDA lady today and she told me they don't do Pre-qual letters, and that I can submit a Pre-Qual application again but cannot really do anything until I get full approval and obtail the Certificate of Eligibility from the USDA.. thanks

[Anonymous]

Our mortgage broker gave us a prequalification letter once we were prequalified, He may have done all those other steps in the background and didn't tell us.