Is it worth it to offer to buy a short sale? (tenant, foreclosed)
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I am a tenant in a house that is about to be foreclosed on. The house is in need of serious repairs. The biggest being that there is a crack in the foundation, it will be between 10-15k to repair. Another 2k to fix the gutter and soffit that are falling apart, another 5k to replace the crumbling shed in the yard. Other repairs needed as well, but they would have much smaller pricetags.
I'm contemplating offering to buy the house in a short sale. She owes $173k on the house. Full value if the repairs were all done would be about 195k, maybe a touch more. It would be about 25k to do all the repairs, plus another 15-20k to do the remodel I want (add on to the kitchen, enlarge/replace the deck.
I've been here for 11 years. Accumulated a lot of 'stuff', I don't want to pack and move. I like the house, love the location.
How low of an offer would be likely to be approved by the bank, if I can convince the owner to sell? I'm thinking of offering 125k, willing to go up to 150k. Is it worth it to try? Is a renovation loan harder to get than a standard mortgage? I would prefer to do a VA loan, but I don't think they will go for a reno home.
How low of an offer would be likely to be approved by the bank, if I can convince the owner to sell? I'm thinking of offering 125k, willing to go up to 150k. Is it worth it to try? Is a renovation loan harder to get than a standard mortgage? I would prefer to do a VA loan, but I don't think they will go for a reno home.
You've got your questions backward. You need to line up your funding before you even think about buying this house at any price. Get yourself approved for X dollars.
Make your offer when you can back it up with money.
Short sales are a process, and no one can tell you what would be approved based on this info. However, short sales generally sell very close to market value.
Before anything else, you need to call a lender and establish your financing. If that works, then its time to talk to the owner and see if they are interested in selling. By the way - a realtor will be a requirement for a short sale so if you can find one in your area that does a lot of short sales - reach out for assistance.
Sorry to be Negative Nancy, but this isn't 2010. I'd start packing up your stuff.
Not sure what you mean by this, but short sales are still happening, and foreclosure is slower than ever...so assuming the OP can get financing and the owner wants to sell, this is a very viable solution.
I’ve told this story here before, but here it is again: a house was under contract as a short sale for $320,000 or $325,000. The file sat on some bank’s short sale desk. In the meantime, the foreclosure department went ahead and foreclosed, cancelling the short sale, and put it back on the market at $305,000. Mr. Dokie and I bought it. The poor people who were trying to buy it as a short sale were SOL and wasted several months.
I am a tenant in a house that is about to be foreclosed on. The house is in need of serious repairs. The biggest being that there is a crack in the foundation, it will be between 10-15k to repair. Another 2k to fix the gutter and soffit that are falling apart, another 5k to replace the crumbling shed in the yard. Other repairs needed as well, but they would have much smaller pricetags.
I'm contemplating offering to buy the house in a short sale. She owes $173k on the house. Full value if the repairs were all done would be about 195k, maybe a touch more. It would be about 25k to do all the repairs, plus another 15-20k to do the remodel I want (add on to the kitchen, enlarge/replace the deck.
I've been here for 11 years. Accumulated a lot of 'stuff', I don't want to pack and move. I like the house, love the location.
How low of an offer would be likely to be approved by the bank, if I can convince the owner to sell? I'm thinking of offering 125k, willing to go up to 150k. Is it worth it to try? Is a renovation loan harder to get than a standard mortgage? I would prefer to do a VA loan, but I don't think they will go for a reno home.
Good luck getting a bank to loan for that property. Especially with a 10-15K foundation issue.
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