Short sale experiences?

posted 3 years ago in Home
Post # 2
Member
1362 posts
Bumble bee
  • Wedding: September 2014 - Turf Valley

I don’t have any direct experience, but here are some things to consider:

  • Typically, people who are in a short sale situation are trying to sell their home quickly.  Therefor, they’re probably not far above what they need to make the sale.  On the other hand, some people list their home for much less than the bank is willing to sell it for.
  • The banks (can be more than 1) have to approve your offer too – not just the seller.  That can take time (sometimes months).
  • Sometimes (although I have only heard of this happening a few times) the sellers ask buyer’s to assist with their closing costs.
  • The home can go into foreclosure before your offer is accepted.

I know from others that SSs can be a big pain, so best of luck! I hope it all works out for you and you get your dream home. 🙂

Post # 4
Member
7281 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

SS attempt #1, went under contract for 3% under list price. Sellers were not cooperative about submitting required documentation to the bank within the bank’s required timeframeWe cancelled the contract after the seller missed several bank deadlines. The seller was just trying to use our contract to stall the bank on foreclosing. It was foreclosed on a short time later.

SS attempt #2, again under contract for 3% under list price. Seller cooperated, everything moved smoothly. 2 months later the bank demanded 12% over list price. We countered with list price exactly (we knew the house was not worth what the bank was demanding). The bank just stopped communicating with us. 2 weeks later the timeframe we stipulated in our contract expired, and we walked. We had already found our house and we were just waiting to be free of that contract so we could move forward on this place. A year later the SS house sold for 10% LESS than what we offered. I watched it on the market out of sheer curiosity, and those buyers spent 9 months on the deal. But they got that house for a steal.  

Post # 5
Member
867 posts
Busy bee
  • Wedding: July 2013

My roommates were in the process of buying a short sale while I lived with them, so I saw all the mess they had to go through. Sometimes people are lucky, but just be prepared for a long haul.

They offered $5k under list price, and were accepted within a couple weeks. They made it a decent way through the process, before the seller divulged there was a second lien on the property, that no one else knew about. Back to square one; now the banks are fighting over how to divy up the money. In the time that happens, all the papers they filled out at the beginning expired, and they had to start that again. While all of this is going on, they’re dealing with all the HOA dues that the seller neglected to pay (thousands of dollars), and who is going to pay that between the bank/seller/buyer/HOA. While all this is going on, their documents expire again. So, they’re constantly refilling everything out, and waiting for the banks to approve again.

It seemed like it was going to go very quickly at the beginning; 8 months later, they finally owned their home.

Post # 7
Member
357 posts
Helper bee

Laurenplusalex:  where do you live?  back in 2007/2008 the houseing market in California was awful tons of short sales and forclosures- so many people were underwater with their homes.  however now, the market is really close to where it was before the crash and home prices are soaring.

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