Post # 1
I have my hopes up on a short sale property that came on the market yesterday. Has anyone purchased one? Did you end up with a good deal?
It is listed WELL below market value and I’m wondering what it will actually end up selling for. I doubt we’ll end up winning here, but it sure would be lovely?
For reference- it is priced at 150k and I’m under the impression that it really should be around 225-235k (if I had to guess). It is a very modest but nice rancher 3 beds, 1.5 baths good sized yard. Looks in good condition and kitchen/bathrooms aren’t recently updated but still look nice.
We’re broke right now and keep an eye on listings but realistically aren’t expecting to buy a house for another 2-3 years. Our max right now would probably 175k since we won’t get any help w/ closing costs.
I can dream, right?
Post # 3
We ALMOST did. I was the one who pulled out because (as much as I hate to say it), I couldn’t shake the feeling that it was bad karma to buy that house.
Post # 4
We did, buy a short sale… I don’t think is was a crazy low price but the previous owners were definitely at a loss which is what most short sales are… We put our offer in on December 10th and got keys on January 10th… It was a very smooth process but extremely rare…
A lot of times there is shady activity surrounding a short sale… The owners are likely already damaging their credit so there is not much incentive to sell their house quick… Once the short sale process starts they can put their house on the market wildly below market value.. If the market will support a higher price it is very unlikely that the bank is going to approve your offer, even if you offer list price – because the bank may never have approved the list price to begin with… sometimes the seller will reject offers because it allows them to continue living in their house rent free… It is a lot of drawn out drama for most people… We got lucky because our previous home owners had bought at the peak of the market and genuinely needed out… They priced it fair and had preapproval from the bank… There was almost nothing wrong with the house…
After 2.5 years we added enough value to sell for 33k more than our purchase price… Good luck!
Post # 5
My FI bought a short sale house. It was a complete gut job and he got it for a steal. The previous owners did not keep it up at all. He had to wait longer than if he has purchased a house that wasn’t a short sale; I think like 3 months until closing. We are in the process now of updating it and it’s neat because we are making it our own.
Post # 6
- Wedding: October 2011 - Bed & Breakfast
We tried and failed, twice. That said, if you have the time and patience to spare, and you don’t really need to buy, it doesn’t hurt to try. Just remember that the list price is meaningless. That’s what the seller says, but the seller’s opinion matters for naught. It’s what the lender who owns the loan wants to demand for the house that ultimately matters, and you will not find out the lender’s magic number until later in the process.
Post # 7
I bought a short sale and price wasn’t that much of a deal, but it was perfect for me. However, the process of getting the offer in, accepted, approved, everything else- worst experience od my life!! When you’re dealing with banks that don’t care that much, it can take forever- it was four months from the day I put in my offer to the day I closed.
Post # 8
@September29: I’m still living in apartments so I don’t know too much about buying houses…
But my mom put her house on short sale a few years ago. I have no idea WHY besides the fact that she likes to waste money, so maybe there are a lot of crazy ladies out there who just want to move RIGHT NOW to a condo on the beach…
so it could potentially be a great deal!
Post # 9
We are in the process of buying one right now…the bank is reviewing the sellers assets to ensure she is eligible for the short sale since she didn’t get short sale approval prior to our accepted offer. We’ve been waiting 3 months already and that’s not even at the point where the bank reviews our offer! We are in no rush however and our commute will be much longer once we move so we definitely don’t mind the wait.
Post # 10
@September29: We put numerous offers in on properties in Vegas and North Carolina, but nothing came of them. A couple didn’t bother to respond to our realtor and one of them seemed like something fishy was going on…coming on and off the market numerous times and then it turns out it wasn’t a true short sale. I hope you get your short sale property- fx for you:)
Post # 11
We put in an offer on one in June. It was accepted right away and we waited and waited for the bank approval. Well I found out in October that the property was foreclosed in September!!! There was no communication from the realtor and I had to tell them it was foreclosed. It was terrible. I personally wouldn’t go for one again but if you have the time to wait, go for it.
Post # 12
My brother did and he got pretty lucky. Since the time he put the offer until it went thru it took less than 2 months. The house sold for well below market (470k), now after 2 years it’s has appreciated to almost 700k. He hasn’t put any work into the house.
My parents bought a short sale 5 years ago and also got lucky.
I know they’re most likely the exception and not the rule, since short sales can drag on forever.
I really wanted to buy a short sale, since they’re listed below market, but my DH didn’t want to risk putting an offer on a house we may not get at the end, so we didn’t go that route.
Post # 13
I work for a mortgage servicer and used to help process short sales. They are great deals, and they make sense for what they are, but the processing time and run around can go for a really long time *think processing for over a year*.
A lot of it really depends on the realtor, so if you have a realtor that isn’t open with communication, has never done a short sale before, or generally isn’t doing their job, then its going to put the bank on hold, leaving you stranded. IE if the realtor didn’t send in the correct documents, we won’t review your offer, so if they don’t know what documents are needed to begin with, its a waste of time across the board.
Each lender/bank has different policies on what they’ll take as well, so a good short sale realtor will either already have preapproval on acceptable offers from the bank, or they’ll realize what they can or can’t do.
Its worth it in the end if you can make it happen, since short sales are on a huge upswing with the economy, but you have to be able to have flexibility to process one.