short sale quick question

[Anonymous]

short sales is when a bank will accept less then what is owed on the mortgage, correct?

whats the difference between a short sale and forclosed property?

friend of mine owns a title company, his company is somewhat ground zero for the housing market, his word is that more people have started the forclosure process now then before...considering it takes 2 years for the process to be complete, the value (in jersey) will just keep going down and forclosures will keep flooding the market??  is there truth to this?  should i wait to buy?  the forclosures i see all over the web (zillow, pru fox roach, trulia) are they the effect of actions that started 24 months ago???

i was pre approved for 140k through boa, FHA funding, i was wondering if short sales or forclosed properties are off limits?  i understand short sales mte need some work to satisfy FHA requirements...but in general should i avoid them at all costs??

i have 20k in the bank, family willing to help with downpayment (maybe another 20k)....

my credit cards will be under 9% utilization when i actually get another hard pull....my credit is 750....looking to make offer within 6-9 months...just want to save some more first lol...

[Booner72]

You should avoid a short sale if you can't stand waiting.  If you would like, you could read my post where I detail every single hellish moment "Our house is going up for auction."  We were going to go the FHA route and nothing would have need fixed.

Long story short, we backed out and ended up buying a bank-owned house via FHA.  Once we backed out and started looking again, I refused to even go see another short sale.  I couldn't take it.  It was the worst experience of my life.  If you can hack it - great deal probably.

Good Luck!

[Booner72]

PS:  Short sale still has the owner involved.  Foreclosure is totally owned by the bank and you only deal w/ the bank.  Also, no waiting.  Check out Fannie Mae's Homepath houses (homepath.com).  There could be some good ones in your area!

[Anonymous]

can you approach forclosures with the same way as you would with a traditional listing?!

house listed for 175k and you offer 145k?!  or the forclosure prices is the absolute rock bottom price acceptable??

also if the forclosure is bank owned, do i have a better chance if my get approved through the same bank that owns the house?!  ive been dealing with boa, would it be ideal to find a forclosure owned by boa or am i being to analytical about this?!  would the bank who owns the forclosured property want you to get lending through them??

[Booner72]

I was able to get my house 4K under what Fannie was asking.  We played the back and forth game just like any other house buying situation.  They came down 2k at a time before I just gave in so I could move on.  Could have probably gotten them down a little more.  Just make your best offer and see what happens, OR, lowball and see if they come down at all as a starting point.

I don't think that the bank thing will make any difference.  The selling part of the bank and the investor/loaning part of the bank are two vastly different areas - though I could be wrong - I have never heard this question asked before so I'm only guessing at the answer.