(Closed) Anyone bought a short sale?

posted 7 years ago in Home
Post # 3
Member
210 posts
Helper bee
  • Wedding: July 2011

@mwitter80: we are currently “under agreement” on a short sale.  We made an offer mid November and are still waiting to hear from the bank.  If they approve it, it would be an incredible deal.  Patience is key. sigh.

Post # 5
Member
299 posts
Helper bee
  • Wedding: October 2011

We are looking into a short sale now, its a great deal, selling for $50,000 less then it did 6 years ago. We are seeing it tomorrow. Not going to get my hopes up either since its a waiting game. I work in real estate and have good consultants here on it so feel comfortable. If you really like it, be prepared to offer at least the asking. The banks will rarely entertain anything less and usually expect a bidding war over the price.

Post # 6
Member
3942 posts
Honey bee

I have several friends who have gone the short sale route. All of them except 1 couple took 9-12 months from making the offer to actually closing. The other couple it took about 6 months I think.

 

Post # 7
Member
331 posts
Helper bee
  • Wedding: July 2012

I purchased a “bank-approved” short-sale.  Basically, it was a short sale without the waiting period.  I would have no qualms about doing it agian.

Post # 8
Member
1116 posts
Bumble bee
  • Wedding: August 2008

We got a great deal on a short sale as an investment property.  So obviously we didn’t have the time pressure that most people do, but it still dragged on quite a while.  We made our offer in mid-March and finally closed at the beginning of December.  However, ours was unneccessarily long as it was processed incorrectly the first time (something with not realizing the original loan was an FHA loan?), so it basically had to be processed twice.  As far as the process, it wasn’t really any more stressful than a regular sale, just a lot more waiting time, and we’d do it again because we got such a good deal.  You could always make an offer but also try to find a bigger month to month apartment for if it doesn’t go through or go through fast enough.

From experience with offering on short sales among my friends and family, I will say that banks are often more willing to negotiate on properties that have been sitting on the market longer.  We purchased our property for $50k less than the original short sale list price, and the bank only asked us to come up $5k from our offer price.  However, we’ve noticed that on houses just listed, the banks often want full list, or even above, with no concessions.  That said, if you’re willing to pay the short sale list price on the house already, then no problem! 

Good luck!

Post # 9
Member
6009 posts
Bee Keeper
  • Wedding: May 2009

Our house was short sale when we put in our offer; a month later, it went into foreclosure and the bank immediately accepted our offer, which was about 15k less than the listing price!  It was a great price for a good house in a ghood neighborhood, so I think it was a good opportunity for us.  We lucked out, though, that the whole process only took 2 months, due to the foreclosure.  We’re also looking at buying another investment property in the near future, and we don’t mind going the short sale route, if we find something we like.  It worked out well for us before.

Post # 10
Member
371 posts
Helper bee
  • Wedding: February 2011

I did, but we were sort of an exception to the short sale rule, from the date we put in offer in to the date we got the keys it was only about 30 days! But our house had previously been in escrow and fell out because the buyers financing fell through…. so the listing price was a price that had already been accepted, and that escrow process had taken so long that while it was a short sale it was scheduled to go to auction (skipping regular foreclosure) a week later, so the whole thing had to move fast. However one thing that you should look into is whether it has a second on it, those ones tend to take even longer than a typical short sale…

I wanted to note too that we originally had an offer on a foreclosure, we put the offer on it in the begining of September and in November we still had not heard back because they were still looking at all the offers, and thats when we found the short sale so we withdrew that offer.

Post # 11
Member
14656 posts
Honey Beekeeper
  • Wedding: June 2011

If you only have 7 months before you want to be in a new house, I dont think I’d go for a short sale.   My friend did bought a short sale, and I think it took 10-11 months from offer to closing… she got preg after the offer, and was then actually at closing going into labor and went to the hospital to have the baby right after.  To say it was stressful leading up to it was an understatement.  They almost gave up several times, but just had it on the back burner and couldnt find anything else.  In the end patience paid off cause they got their house for a good 100k-125k below market value.

Post # 12
Member
2697 posts
Sugar bee
  • Wedding: June 2012

@mwitter80:

I’m a realtor and agree with the above. Short sales can be an amazing opportunity, but can take forever to hear back on them. There is no harm in putting an offer in, but I wouldn’t put all of your eggs in that basket–keep looking in the meantime and if you find something else you like, withdraw the offer.

 

Post # 13
Member
347 posts
Helper bee
  • Wedding: October 2010

My husband and I JUST closed on our first home (still moving boxes!!) and it was a short sale.  We put in our offer in October, and closed on January 6th.  Patients really is the key. 

My friend had to wait 5 months before she got an approved offer from the bank she was buying through.  Bank’s are NO FUN!!  Good luck!

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