(Closed) buying a short sale home..any advises?

posted 4 years ago in Home
Post # 3
Member
3430 posts
Sugar bee
  • Wedding: June 2013

@ddsfam:  Short sales are hideous! I cringe when a client wants to make an offer on one. If you need to move in by August, I would keep looking. The odds of that happening are slim. Is this an approved short sale at 390k?  Meaning has the bank approved the sales price? Are you using a buyers agent? he/she should be guiding you. 

Post # 4
Member
274 posts
Helper bee
  • Wedding: April 2014

Be prepared because in my experience short sale usually means really efling long sale. 

Post # 5
Hostess
3376 posts
Sugar bee
  • Wedding: May 2013

I do have one friend who their short sale actually went REALLY quickly, but I had more friends with negative experiences. I think if you need to move by August you should look at other options, for sure. Just remember, what’s meant to be will always find its way. 🙂

Post # 7
Member
3430 posts
Sugar bee
  • Wedding: June 2013

@ddsfam:  If you have an executed contract both (you and the seller) have agreed to its terms I am not familiar with standard contracts in your state but ask your sister what will happen if the seller defaults.  

 I have seen many a short sale fall apart in the last hour. Banks are skanks..they will look at comps and try to squeeze every dime they can out of you.  So the bank is set to foreclose on the 28th of June? are you prepared to come up in price if the bank counters?  I would continue to look just in case.

I am not familiar with CA real estate/laws, I’m licensed in IL.  Good Luck and don’t be discouraged if this doesn’t go through..it may be for a reason 🙂

Post # 8
Member
7312 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

If the house next door is about to close for $440k, I’d say there is a very slim chance that the bank will close your deal for $390k. Banks are greedy to a ridiculous extent. On our second short sale (because the first one failed and we didn’t learn our lesson the first time) the bank demanded $500k because they thought the house was worth it (based on the bpo). We offered what we thought the house was worth ($450k) and the bank just stopped responding in negotiations. We walked away, that house sat on the market for almost a year more, and finally closed for $403k. The bank lost $47k by not taking out offer, and $97k based on their (incorrect) bpo. Banks are stupid and greedy and useless.

Post # 11
Member
1510 posts
Bumble bee
  • Wedding: December 2014

Our short sale process dragged out for 5 months, so be prepared for super long process! They could drag it out for 5-9 months, and then you don’t even get the house! Thankfully we got ours!

Post # 12
Member
3430 posts
Sugar bee
  • Wedding: June 2013

@ddsfam:  I was referring to the seller defaulting on the terms of your contract. Ie accepting subsequent cash offers while in an executed agreement with you Etc. Not sure how they work it In CA but here a property will forclose prior to auction.  Sounds hairy! do you have a real estate attorney? may want to get one, they’re only 350 bucks here and they may be able to help you sort it all out

Post # 13
Member
1980 posts
Buzzing bee
  • Wedding: March 2014

We didn’t buy a short sale, but we bought a REO property. That means it got foreclosed on, went to auction, did not sell at auction, and is bank-owned being listed by a real estate agent. 

We looked at it in early March, put in an offer on a Monday evening. Our offer was all cash, full asking price, no contingencies, immediate closing. Our offer was accepted on Thursday morning, and we closed (with keys and all papers signed and done) exactly 28 days later. It was painless.

Post # 16
Member
10368 posts
Sugar Beekeeper
  • Wedding: September 2010

We bought in the San Fran area last November, and it’s the same type of aggressive all-cash market.

Short sales can be a pretty raw deal – between the lack of closing assistance, HOA liens, and the fact that most short sales – especially in LA/San Fran/etc actually do not sell for below market, it can be a really bad deal.

I think you should wait until you find either a short sale that isn’t so upside down with HOA fees, or keep on bidding on regular sale homes. We got lucky when an all-cash bidder backed out and we were the next highest bidder. It IS possible, you just have to be patient. I suspect, as housing prices rise, there will be more underwater sellers who are no longer underwater, and inventory will rise. That means the fury of bidding wars driven by the low inventory will subside.

Don’t buy at “any cost” just to buy. You may not recoup those upfront costs that you are paying for.

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