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Started By
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Stay away from short sales?
Posted on 3/10/16 at 2:20 pm
Posted on 3/10/16 at 2:20 pm
Currently looking at a few houses and recently walked through a house that is up for a short sale. I've heard that this is a chance for a steal but I've also been told to stay away. Any advice on short sales?
3
Posted on 3/10/16 at 2:40 pm to thedentist45
I'm sure others know much more than I do about this, but I do know that short sales (and foreclosures) can take a LONG time to process. So, depending on your situation, that can be a pain to deal with.
Posted on 3/10/16 at 3:12 pm to thedentist45
Which area?
Posted on 3/10/16 at 3:29 pm to TigerTatorTots
North Lafayette
Posted on 3/10/16 at 5:33 pm to thedentist45
It's typically a little bit easier to just wait until the bank forecloses on it, but if you think it gets snagged up fast, make a play on it.
Posted on 3/10/16 at 8:49 pm to ItNeverRains
Short sales can be great deals if you are willing to wait it out.
The real question is...why are you buying on the northside?
The real question is...why are you buying on the northside?
Posted on 3/10/16 at 9:14 pm to theoldwiseone33
I bought a short sale 3 years ago, took 9 months but it can only take 2-3 months.
My advice is to push HARD to figure out why it's being short sold and see if the bank is going to allow it. Sometimes the banks have already agreed to a short sale and a price, those are good buys. Other times crack heads think they can short sale and the bank denies it, so you can wait for months with an offer accepted only to have the bank deny it.
1.) find out if bank has said the house is eligible
2.) if the bank hasn't said the house is eligible, make sure the owner is truly in financial hardship and the bank will
I got my house for 222,000 and it's worth about 302 now. It was worth it, but we had to go through more than most to get it.
My advice is to push HARD to figure out why it's being short sold and see if the bank is going to allow it. Sometimes the banks have already agreed to a short sale and a price, those are good buys. Other times crack heads think they can short sale and the bank denies it, so you can wait for months with an offer accepted only to have the bank deny it.
1.) find out if bank has said the house is eligible
2.) if the bank hasn't said the house is eligible, make sure the owner is truly in financial hardship and the bank will
I got my house for 222,000 and it's worth about 302 now. It was worth it, but we had to go through more than most to get it.
Posted on 3/11/16 at 9:02 am to baldona
Apparently it was oilfield related and owner has made agreement with bank already. My question is how to know what to come in at? Is it generally a percentage of asking or does it vary for each situation?
Posted on 3/11/16 at 10:12 am to thedentist45
there is nothing short about a short sale. The bank is going to sell the home as is. 90% of the time they will not make any repairs. Its a bid type process. Get a good agent and start low and see what they say and then counter. At a min its a 3 month process. As a loan officer I hate these deals!
Posted on 3/12/16 at 10:58 pm to hawkeye007
quote:
hawkeye007
quote:
The bank is going to sell the home as is. 90% of the time they will not make any repairs. Its a bid type process. Get a good agent and start low and see what they say and then counter. At a min its a 3 month process. As a loan officer I hate these deals!
Quoting Hawk but to respond to OP not all mortgage loan originators hate business that requires them to work a little harder than normal. Please don't let this discourage you. Also, the time length can vary as well.
I know hawk may think I'm busting his chops but man sometimes he seems like he doesn't like to work. I know I'm wrong about that. But I have a soft spot in my heart for loans where the Earth must be tilled and fingernails must get dirty.
In short my advice is that your mileage may vary with your experience. Especially if you time your offer correctly. A bank-especially a local or smaller regional bank-that has REO on their books and needs to clear shite off their books if it's end of month/quarter/FY/EOY may be under pressure to clear it off their books and free up their sheets.
Be prepared for the worst but if you are committed to short sale/foreclosures, find a team (realtor and mortgage professional) who share your commitment to this path and are familiar with these deals and the process.
Good luck.
This post was edited on 3/12/16 at 10:59 pm
Posted on 3/13/16 at 9:41 am to GFunk
Thanks for the help.
Posted on 3/13/16 at 11:14 am to thedentist45
Yes Definitely make sure your realtor is not modest or shy, the ones that have been around since 2008 and have done a few already are the only ones I'd use. This is where you want a jerk on your side. They need to request information often from the bank to make sure they are being pushed to close.
My realtor 3 years ago was inexperienced and let things drag on by not staying on top of people. For example, the guy that owned the house was letting someone rent the place the whole time and still was not paying his mortgage. He didn't tell the tenants until 7 days prior to close that they had to move, and law gave them a 30 day notice. So that delayed my closing by 30 days and cost me money to delay my closing.
In order to qualify to short sale I believe you have to had not paid your mortgage in 3 months and be in financial hardship to a point you won't be able to long term. Therefore, the bank agrees to short sale so they don't have to go through the legal process of taking over the house, kicking the owners out, etc. The foreclosure process can take years.
So you want to do everything possible to determine where the bank is standing financially. If the mortgage had not been paid in a long time and they are nearing a foreclosure, they will deal to not go through it. If it's not close, they are patient and it's going to take months.
My realtor 3 years ago was inexperienced and let things drag on by not staying on top of people. For example, the guy that owned the house was letting someone rent the place the whole time and still was not paying his mortgage. He didn't tell the tenants until 7 days prior to close that they had to move, and law gave them a 30 day notice. So that delayed my closing by 30 days and cost me money to delay my closing.
In order to qualify to short sale I believe you have to had not paid your mortgage in 3 months and be in financial hardship to a point you won't be able to long term. Therefore, the bank agrees to short sale so they don't have to go through the legal process of taking over the house, kicking the owners out, etc. The foreclosure process can take years.
So you want to do everything possible to determine where the bank is standing financially. If the mortgage had not been paid in a long time and they are nearing a foreclosure, they will deal to not go through it. If it's not close, they are patient and it's going to take months.
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