Short Sales

[MovingForward_2012]

We are interested in a couple of properties that are short sales. Both properties have a buyer that has submitted an offer to the bank. The realtor told us often times the primary buyer steps out of line and purchases something else as the wait for the bank to accept the offer is 3-6 months. We are looking to close end of Feb and at the latest, end of March. We found one that is absolutely perfect but we are worried the primary buyer will accept the bank's offer. Given our timeframe for moving, are short sales a good pursuit for us or not?

[pizzadude]

60 - 90 days would be a reasonable timeframe on a traditional purchase that doesn't have any glitches along the way.     IMO it will be near impossible to complete a short sale in that timeframe.

[MovingForward_2012]

Okay that's what I figured. Bummer! Most of the properties in the area we are looking at are short sales.

[MovingForward_2012]

Thanks for the quick response.

[pizzadude]

Well you can always try ~ but just be prepared to wait it out....   Banks have their own timelines when it comes to losing money.

[MovingForward_2012]

Our lease runs through May but once our landlady finds out we are not buying the house, she will try to sell it right underneath us. If we are in a lease until May but the landlady is ready to sell to us (we don't want it) or someone else, she can do that right? And then we would be forced to move before the lease is up, correct? We could wait until May but our landlady isn't playing by the rules anymore.

[pizzadude]

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@MovingForward_2012 wrote:
Our lease runs through May but once our landlady finds out we are not buying the house, she will try to sell it right underneath us. If we are in a lease until May but the landlady is ready to sell to us (we don't want it) or someone else, she can do that right? And then we would be forced to move before the lease is up, correct? We could wait until May but our landlady isn't playing by the rules anymore.

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I think it depends on what is in your lease.   Does it have a clause that mentions selling the house ?

[MovingForward_2012]

Good question. I'll check it a little later and get back with you. If there isn't a clause like that in the lease, does it protect us or not?

[MovingForward_2012]

I just checked the lease and it ended May 2012. There may be a copy of another one on the computer so I will check that one as well but it looks like we are renting month to month so we are really in trouble. We meet with a realtor tomorrow to look at some homes and the mortgage broker is supposed to call is back this afternoon to get the loan process started.

[Kozmo]

Truth be told short sales are being processed a lot faster now, especially because of the expiring mortgage debt law (which will likely be extended this week).

Especially if it is a Fannie/Freddie backed mortgage. They have changed their guidelines to allow servicers to handle most of the decision making...but every situation is different.

Especially if there is a second lien on the home. that can delay it for certain.

I would still try, and find out as much information as you can about the mortgage if possible. If it fannie/freddie, i'd bet it can close in 90 no problem.