How can I ask a homeowner if they would consider a short sale??

[Anonymous]

Coter said-

  "Finally do a google search of the owner's, especially if the house looks vacant or like an old person lived there"

Man that was cold.

[coterotie]

Gee why wouldn't you want to know about deferred maintenance, vacancy and the age of HVAC/appliances?  Realtors will often times not show pictures of the bathrooms and appliances if they look dated.  So to avoid wasting time, use Google.  House around the corner from us as an example.  Real Estate listing says recently updated.  The limited pictures on line, don't necessarily reflect a "recent" update.  I know the owner's are late 70's early 80's, but google would have told you this as well.  So either the people have outdated tastes or recent means 1989.  Either way, the house is overpriced and you know that you will have a ton of work to do.  So pass unless you are into that thing.  You can only spend money once, better make it count when you turn loose of it.

Also an older person may not need the cash, but prefer income higher than a CD would pay.  So you might approach them with an owner finance offer so you can use your down payment money for updates and repairs.

As to the question about research. I start with the tax records at the county revenue commission.  In our state property records are located at the judge of probate office.  Each state is different, just google property records.  In most counties the research is free online.

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@Anonymous wrote:

Coter said-

  "Finally do a google search of the owner's, especially if the house looks vacant or like an old person lived there"

Man that was cold.

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[coterotie]

Then walk.  You didn't have to buy the short sale and the bank is looking out for themselves.  I am not saying a short sale is perfect, but unless you have the cash to stand at the courthouse steps it is slightyly easier than buying it at foreclosure.

Banks make stupid decisions all the time.  Someone offers them 200K at short sale, they turn it down and end up selling it after the foreclosure process for 150K plus expenses.  To the same buyer.  Local bank turned down our offer of 185K on a foreclosure.  They ended up selling it a couple of months later for 145K.  The real estate agent told us they wouldn't negotiate from the asking price of 285K.  That price was "firm."

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@Peter1142 wrote:

Like I said, I saved no money in buying a short sale. I did not save any money even on the purchase price. The bank wants what the bank wants and they will not negotiate. They determine what they think they can get for it and that's what they are willing to sell it for.  Stuff that came up in the home inspection, and the walkthrough - frozen pipes that were now leaking - it was take it or walk away. In addition, there was a ton of work rehabilitating the uncared for home and property, and I have spent $15,000 in repairs that were not even on the list of repairs I thought I had to make.

Luckily, I think my home was definitely worth it, even with all the repairs and hard work, but I cannot recommend a short sale, it's a horrible process that is not for the faint of heart and there is no benefit in it for you.

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[Anonymous]

Coter says-

"Banks make stupid decisions all the time."

"Do old bankers make more dumb decisions than the younger guys?"  LOL

Gettin old is rough.  I went in my bank of 45 years (large regional) recently, and despite all that, and having a little money parked

there, couldn't get anybody to wait on me.  I looked around the lobby and shouted out to a guy in a suit coming out of a office, ' HEY! Do you know who I am?"  "Nah, but hold on a minute, and lemme get the nursing home across the street to send a nurse over, she can tell ya."

[StartingOver10]

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@Anonymous wrote:

Coter says-

"Banks make stupid decisions all the time."

"Do old bankers make more dumb decisions than the younger guys?"  LOL

Gettin old is rough.  I went in my bank of 45 years (large regional) recently, and despite all that, and having a little money parked

there, couldn't get anybody to wait on me.  I looked around the lobby and shouted out to a guy in a suit coming out of a office, ' HEY! Do you know who I am?"  "Nah, but hold on a minute, and lemme get the nursing home across the street to send a nurse over, she can tell ya."

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^^^This is typical of banks today. I usually see it with the big box banks and not with the regionals. But it seems many of the banks are moving to the 'very little service' model of banking. My guess is it is more cost effective for the banks to not train their personnel for service - but to train the public to use automated type systems instead!

[ezdriver]

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@Anonymous wrote:

Coter says-

"Banks make stupid decisions all the time."

"Do old bankers make more dumb decisions than the younger guys?"  LOL

Gettin old is rough.  I went in my bank of 45 years (large regional) recently, and despite all that, and having a little money parked

there, couldn't get anybody to wait on me.  I looked around the lobby and shouted out to a guy in a suit coming out of a office, ' HEY! Do you know who I am?"  "Nah, but hold on a minute, and lemme get the nursing home across the street to send a nurse over, she can tell ya."

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I like it. That was funny!

[Peter1142]

It's easier said than done. The closing was scheduled in an hour and I had invested a ton of money in closing costs etc.

Why would you want to make a purchase with someone who is impossible to negotiate with and has a minimum price of 100% market value. It may be slightly easier than standing at the courthouse steps but it is far more difficult (in an already extremely difficult process), and IMO unlikely to actually wind up cheaper, than buying from a real seller.

[sillykitty1]

Yes, short sales are a hassle, take a lot of time and patience.  But in a lot of markets it's the only viable option.  The OP stated in the neighborhood he wants to buy in there are no houses for sale.  In my area, it is 80/20 short sales vs conventional, the conventional sales houses sell at a huge premuim because of buyers unwilling or unable to wait out the short sale process.

[Peter1142]

This is true... but for OP, there aren't even any short sales. To attempt a short sale purchase from a completely unapproved and uninformed seller sounds truly awful. You could wind up throwing lots of money, time, and energy away.

[edcb]

It was an undisclosed second mortgage that she "forgot" that she had until the title work came back.  Sales price covered the first mortgage...but not the second.