Buying a Short Sale

[HLAuburn]

Does anyone have any experience with a short sale home? I found a great house and it seems like a really good deal, but its a short sale. The only thing I know about short sales is that the generally take longer than a "regular" home sale, but is that always the case? And can you still offer a lower price than they are asking and maybe get a counteroffer if they don't accept it? Do you still get an inspection like a regular sale, too?

Thanks!

 

[kimmar067]

RUN!!! Run away from it AS FAST AS YOU CAN!!!!

 

[Bob NC]

The problem with a short sale is that nobody involved, (on the seller end), has an interest in the property so there is no motivation.

After you make an offer it can sit on the desks of various bank employees for weeks or months. They are in NO hurry.

These sales are usually "as is" because the bank is losing money already, they sure as heck aren't going to do any improvements.

You can get a good deal and it could be a great way to go for you as long as you are in no hurry and have some patience.

Hopefully this reply is more useful than the last one.

 

[The Mystery Machine]

Yes a short sale will take longer. Not sure about the other stuff, it really depends on the banks, seller, and the person handling the sale.

As far as a "good deal", it is not really a "good deal". The price is just being lowered to the new appraisal/comps for the area. Now you might get something off however if you think it is "BIG SAVINGS" more than often it is not. It is just the "new price" of the area. SO be be cautioned there.

What is happening is that the seller is overextended on the loan and they cannot make up the difference in the sale.

 

[mykidsand_i]

We've purchase 2 different short sale homes in our 10 years of marriage...AND I've had a lot of 'experiance' with the process.

No, you do not need to run (I do not agree with pp at all). Short sale is not 'forclosure'...Forclosure- yeah, run! BUT, there is a huge difference.

You can get involved with a short sale through any realtor- and they have TONS of info. for you.

1. It will take longer (sometimes longer than people expect)...ours took 2 months to hear back just about the offer alone. This house was 100% worth it. We were in no Rush and that why it worked out for us.

2. Short sale allows a buyer to get more home for less money (in most cases). The person doing the 'short sale' still NEEDS to sell the home, because they still 'own' it, but they've made an arrangement with the bank- so both the bank and the owner will be selling it, not just the owner as a regular sale. It is not like a forclosure where the bank takes over, so the person(s) living in the home trash it before they are thrown out of it.

3. There is less 'wiggle room' to mess with on an offer (once again in most cases). The sellers are usually selling it for what THEY own on it. The bank has to agree (this takes time) and the seller has to agree on what the sale is. The bank and seller will not take less than what is owed on it, they need to AT LEAST break even.

 

[mykidsand_i]

The problem with a short sale is that nobody involved, (on the seller end), has an interest in the property so there is no motivation.

Not true in all cases. I've purchased 2 short sale homes and my husbands co-worker put his house on 'short sale' so I've seen it from both ends.

- from the sellers end, they still need to sell that home and in most cases they have an agreement with the bank that they will do all they can to get it sold. (at least in my area). The bank also does WANT this home to sell, because they'll finally get their money that is owed. IT DOES MOVE SLOW, because of 'hold ups' with the bank and agreements (stupid!!!)-

-the two homes we've purchased on short sale both had 'motivated' sellers/banks because in BOTH of our cases the sellers NEEDED to get it sold, so they'd be able to get into a different home- when that 'loan' was still opened for them, they couldn't get another loan to get a different house. We talked to the 'sellers' of the home we live in now and BELIVE ME, they were motivated. Their loan on the bank for this home was in 'hold' mode, but they still couldn't get any type of a small loan to buy their NEXT home until this one sold. Just because they aren't making payments, doesn't mean they aren't motivated. The bank is the main factor in time because of how stupid their process is. I mean, you think they' want to hurry things up when it's THEM who's gettin paid!