frustrated with home buying- is short sale the answer?

posted 3 years ago in Home
Post # 3
Member
772 posts
Busy bee
  • Wedding: September 2013

@bella731:  We put bids on a few short sales back in 2009 and were house-hunting. Still haven’t heard back…

Post # 5
Member
772 posts
Busy bee
  • Wedding: September 2013

@bella731:  Well, we gave up and ended up buying a foreclosure and withdrew our bids (although we never heard anything). Plus I forgot- we actually placed those bids in 2008. 

Post # 6
Member
262 posts
Helper bee
  • Wedding: September 2013

We too found our “perfect” home, but it is a short sale. we put an offer in a month ago, and now we’re just waiting on the bank. Basically we have an accepted offer from the owner, and in a normal sale this would have sent us moving forward. In a short sale it means your offer can now be submitted to the bank, and the bank can accept, deny, or flat out ignore and never respond to your offer. 

We will close on or before july 1st  or our offer expires ( that way they have to answer before then or we know to move on). It is a HARD wait to hear yes or no from the bank, and we may never hear back 🙁

Just consider that a short sale is an AS IS home. Leaks, roofing, mice, dry rot, missing insulation ect. will all be your out of pocket costs. The bank/owner will not fix anything, and the closing costs will usually be out of pocket for you as well.

That being said, DH and I had the time to wait it out, and if we close it will be a great deal on the home. so if you have time to keep looking while waiting on a short sale it could be worth it for you. Goodluck! 

Post # 7
Member
391 posts
Helper bee
  • Wedding: July 2013

I don’t have any personal experience with the process, but from what I have read about short sales, if you are already frustrated then NO I definitely would not consider a short sale…

Post # 8
Member
7281 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

Short sales are generally not the answer to frustrations…. they are the source of it! hahaha

SS contract #1. Seller accepted, we went under contract, seller strung us along by telling us that they were submitting paperwork that the approving bank required when they actually were not. The seller was using the short sale (and us) to screw around with the bank. After they missed paperwork deadlines established in the contract we had grounds to terminate the contract for cause and get our escrow money back in full. It was a waste of a month of our time. The house eventually went into foreclosure.

SS contract #2. Sat on the market for 3 months and went nowhere. Not even an offer. Dropped the price. We saw it a few weeks later, offered, it was accepted, and we went under contract. The bank immediately came back to demand that we put more money ($10k) in escrow. Fine. Whatever. We ponied up the cash. Then the bank went silent for 2 months. They finally came back and demanded $35k more than the original list price on the house (the price that got no offers). We countered back, raising our offer $15k and giving the bank 15 days to respond. The bank never responded so we just walked away. They had already wasted enough of our time and the bank had it stuck in their head that the house was worth $50k more than it was really worth. So all that time we had $10k of our cash locked up in a deal that was going nowhere. If we terminated the contract without cause we would have lost that $10k. So we were absolutely stuck. Note: The house eventually sold for $45k LESS than what we offered, but that deal took 9 months to close. Those were some very patient buyers, but they got a house for a very good deal.

Post # 9
Member
3707 posts
Sugar bee

My daughter did one. It took months. Very frustrating. It involved a bitter divorce, too. She and her husband were socked with thousands of dollars of legal fees, at settlement, since they had to go through a lawyer, every time they wanted to communicate with the ex-husband/seller. He made it as difficult as possible. It almost went into a foreclosure situation and they would have had to walk away, or start the whole process over again.

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