Post # 1
We just put in an offer on a short sale that was accepted by the owner! My realtor said it could take 4-6 more months for the bank to respond to the seller of whether they will accept the offer as well. We have to pay for a home inspection this week and start our mortgage process.
The owner has 3 mortgages on the property and based on what he paid a few years ago and I’m figuring he owes about $130,000 more than we offered. I’m not sure if the bank will agree to take that big of a hit.
Have you either sold you house through a short sale or bought one? What was your experience??
Post # 3
Wow, you got lucky that it happened so fast for you!
We put an offer on a house the beginning of Jan, still waiting. They have 2 mortgages so we’re expecting it to take a while, but wrote in the contract that we want to know by mid May or we’re out. (I’m pregnant and don’t want to be buying a house and going into labor at the same time).
Post # 4
We were going to put an offer in but were told it’d be 90-120 days until we heard anything. THEN the bank would have to approve it too. They said it could be up to six months which we simply didn’t have.
I’m glad you heard back so quickly. That seems like a good sign!
Post # 5
We put an offer on a short sale with only 1 mortgage, offered $6000 less than asking plus up to $7700 in closing costs (our agent at the time said it was a great offer, as did the listing agent). That was submitted on March 7th, the respond to date was March 25th, our agent advised us to extend it to April 15th “because our offer was so low and doesn’t appeal to the bank” I could’ve smacked her, I was livid.
They’ve kept us updated, they ran a BPO and are looking at the seller’s financial condition.
Post # 6
Well, we were on the other side: I talked my husband into selling short because that house was dragging us down financially. He makes a good living but the mortgage was killing us. We just closed last month and our short sale was really easy. He only had one mortgage and was about $80,000 underwater.
The buyer did pay for a third-party loss mitigation company and I know that helped move things along quicker plus it was great to have experts to fill us in on every step. The buyers are happy and we are even happier. Yay!
Good luck and I hope you get your house:)
Post # 7
@PutABirdOnIt:Did you have to come to the table with any money or did the bank wave your balance? I’m concerned that the bank may want to settle with the seller but ask him to pay some of the balance, and he might decide not to go forward with the short sale.
Also, how would it help for the buyer to hire a third party loss mitigation company? Isn’t the loss between you and the bank? Why would the buyer be involved with that mitigation?
Post # 8
@CanAmBride: Well, the bank did come back and ask the buyer to come up $5,000, which isn’t really a big deal in terms of a long-term loan and my husband had to come up with $3,000 at closing. We felt it was reasonable and we all wanted the sale to go forward. If the bank had asked us for say, $10,000 it would have been a very different story.
The third-party loss mitigation company is a liasion between you, the seller, the bank and the realtor. Most Realtors don’t know how to handle short sales-they’re complicated and the paperwork is confusing. I am certain we would still be in the process if we didn’t use them. All these companies do is deal with short sales and the like. I say it’s worth the money if you really want the house.
Post # 9
We have offers on two short sales right now. The first one we sent in a month ago but they have not yet replied (our offer says 45 days). The second was from last weekend and we’ll likely be a backup offer though we made it as good as possible, with $15K over list price and we’ll pay closing costs.
We also put in two other offers, only to find out that one of them was about to go into escrow (which the seller never told us) and the other was an REO too close to auction and the bank wasn’t really accepting offers.
It’s really disheartening to think no one wants to be upfront about the process. We’d like to buy before the rates go back up but I don’t think we’ll ever be able to afford something that isn’t a short sale.
Post # 10
I’m just interested in seeing responses.
Post # 11
We put an offer in on a short sale and about 40 days later it was accepted. We did the inspection and realized that when we intially put in our offer the house did not have a leaky fridge. Well in those 45 days, apparently the fridge started leaking and when we walked into the dining room, the wood floors were squishing underneath – then due to the sitting water for 40+ days mold was forming in the closet. Of course, the sellers wern’t willing to fix that prob, they were in a short sale afterall. So we moved on.
Post # 12
Well we put an offer in on one March 7th, ask to hear back by the 25th, had to extend that to the 15th of April. We got a counter back yesterday the 30th.
We offered $6000 under the list price (it’s way way overpriced for the size and this area) and ask for closing costs, not too bad we didn’t think? Our agent agreed it was a good offer. Then at the end she blamed our offer being to ridiculously low and the slow response time, REALLY?
So the counter yesterday was for $11,000 OVER the asking price and less than half the closing costs paid by seller only if we countered at or ABOVE their counter. So we fired our agent (she was not a very smart lady, you don’t talk to your clients like they’re children if you want to keep them as clients.) and found a new one through my lending office, took a look at another shortsale. We’re going to back to look at it again in about 5 minutes! Everything in our price range in this market is a short sale, not hardly any are bank owned anymore. All the owner’s selling are very high priced, I guess because they’re so much easier to purchase.
Short sale = NIGHTMARE!!!
Post # 13
When I put in an offer on a short sale is was accepted about 2 months later. It can really vary though.
Post # 14
We had our inspection and it went really well! Now we just have to wait for the seller to negotiate the deal with the bank. I still find it difficult to believe that the bank will let him walk away from 3 mortgages. I guess we’ll just sit and wait until we hear anything…
Post # 15
This may be an obvious question but i’m just starting all this research…what is the difference btn a short sale and a foreclosure?
How do you find out about short sales?
Post # 16
- Wedding: August 2013 - An amazing non-profit retreat
I’m going to take the term “short sale” literally. SO and I decided we wanted to buy and started looking in late June. We looked at a few houses in our price range which were…crap. I discovered (our now house) online and although he was feeling jaded about the search, SO decided to check out the listing. We went and saw it twice in early July.
During the second showing, the price dropped $10,000. I had an inspection done, and a couple of days later, SO and I decided that we’d put in an offer that day and we agreed on a price before we both headed to work. I was at work when he called me from the realtor’s office and told me that BAM, we had the house. Our offer was accepted immediately.
Turns out, we were just in time because an investor had put in a higher offer that same day. We beat him out by a couple grand. The longest wait of the whole process was waiting until we could move in the next month. The best part is, the house is brand new, it was truly loved by the previous owner, and it is far nicer and more unique than I ever thought a starter home could be.