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Talk to me about short sales...

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Anonymous
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Talk to me about short sales...

There's a house that I'm very interested in that's a short sale. It's valued at $177,000 and listed at $109,000. We've been approved for $110,000.

 

I just want to hear about anyone's experiences with short sales, or what you know about them...I understand what short sale means, but do they usually go smoothly? I've read on here about them taking awhile and being something realtors often don't want to deal with?

 

Any info/opinions/advice appreciated!

Message 1 of 8
7 REPLIES 7
thrasher865
Valued Contributor

Re: Talk to me about short sales...

Even if your bank approves you, the seller's bank may or may not approve the sale price.  Even if you offer more than asking price!  Once you submit a bid, they may take bids for another 2 weeks or whatever they please, then decided if they want to accept.  You could be without your earnest money for a good 3 weeks.  I decided a short sale wasn't for me as a first time homebuyer, but if you're looking for a steal of a deal, it could potentially be worth it. 

 

Of course all short sales and foreclosures are usually sold 'as is.'  At least I believe short sales usually are.  Foreclosures always are.  If you are financing with an FHA or similar program, it may be more hassle than it's worth and the seller's bank may not even accept FHA.

 

I only know what my realtor has explained to me, of course, having not been through a short sale purchase or sale.

 

But even if you give more than asking price, you may get outbid.


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Message 2 of 8
Anonymous
Not applicable

Re: Talk to me about short sales...

Thanks for the reply. The house looks like it's in excellent shape, at least cosmetically, but you're right, it is being sold "as is". I've been researching short sales and don't feel like we're probably in the position to get involved with one...plus it's not in the area that we were initially planning on moving anyway, and it would require finding new schools for the kids, a jump in my college tuition, and a longer commute. Beautiful house and great location! But I don't know if I am ready for the emotional stress of a short sale.

 

Thanks again!

Message 3 of 8
WannaHouse
Valued Contributor

Re: Talk to me about short sales...

Ours has gone fairly smooth, but from what I have read, we just got a good one!

 

Our agent used alot of deadlines to try to get quick responses from the sellers and the bank. (mostly the bank of course) The sellers replies were always very prompt. Within about 10 days, it went to the bank, where we waited 2 weeks for their approval. Total time was about 6 weeks from first offer to closing! (which is either tomorrow or Monday) Woo Hoo!!


Kathy


We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.

Message 4 of 8
Anonymous
Not applicable

Re: Talk to me about short sales...

We're buying a short-sale home now. I think this process depends highly on individual circumstances. In my case, the bank already had a BPO done. The owners are working WITH the bank, unlike many circumstances. The house has also been on the market for awhile in a declining market. My realtor thinks this will probably be one of the smoother short-sales, but things always happen. See the following. Smiley Happy

 

http://www.phoenixrealestateguy.com/short-sales-and-stupid-lenders/2049

 

-X

Message 5 of 8
Anonymous
Not applicable

Re: Talk to me about short sales...

negotiations, approvals to go with the short sale was less than 2 weeks, but getting MI is my speed bump
Message 6 of 8
Anonymous
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Re: Talk to me about short sales...

Wow...I'd talked myself out of it but now you all have me thinking about looking at it...are you all getting the property for close to what it was listed at? This one's listed right at the top of our price range so we couldn't go up if the bank didn't agree to the price.
Message 7 of 8
thrasher865
Valued Contributor

Re: Talk to me about short sales...

If you've got time for the bank to sit on your $1000 earnest money, by all means submit an offer.  The worst they can do is say no.  Just be sure you know that it will probably not be as simple as a conventional sale.  There will be hoops to jump through.

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