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Old 04-22-2009, 02:20 PM
 
Location: Youngstown, OH
182 posts, read 531,100 times
Reputation: 88

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Quote:
Originally Posted by DDevil View Post
Just got an answer on our offer.
The bank wants more $$, doesnt want to pay any closing costs, and wants to sell the house "as-is", plus wants us to get a mortgage only from them
They really pushed their luck too far, we gave up on this house.

I get the "as-is". I get "no closing costs paid". That's typical.

What I HATEEEEEE is the "more money".

What I think is immoral is the "mortgage from them".

If the seller's bank tells me that on a short sale, I'll tell them to eat sh*t and die. I'm VERY sorry to hear that....
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Old 04-22-2009, 02:26 PM
 
Location: Knoxville
1,155 posts, read 3,380,683 times
Reputation: 372
Short sale agents, are all different and the good ones, will still work with one buyer at a time, and I always wonder how they get around, making the offeror wait, hoping for more offers? When I work as buyers agent, I try and make sure, Im the only bidder, and not waiting on more offers, and I have seen some work that way, but still some put dates to end bidding. If your going to stay active and do find a better deal, be sure your offer is withdrawn, not to expose you to more than one.
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Old 04-23-2009, 09:32 AM
 
Location: North Las Vegas
1,631 posts, read 3,945,268 times
Reputation: 768
Quote:
Originally Posted by DDevil View Post
First time home buyer currently looking to buy a house and I was told by a Realtor that buying a house on short sale takes a few months.

So assuming I make an offer that is accepted and then my wait is say 3 months, what do I do in the meantime?
Do I stop looking at other houses and miss out on other houses if this offer is rejected?

Or do I keep looking but not make any more offers because I can honor only one accepted offer?
Here is a great article that goes over what a short sale is and what to expect.

[SIZE=4]Buying a short-sale property comes with various risks[/SIZE][SIZE=2] [/SIZE]
In the recent past, the inventory of homes for sale was pitifully low. Now, the number of homes for sale has increased in many areas. However, there are listings being offered for sale on less-than-advantageous terms. An example is the so-called short sale.
In a conventional home sale, the buyer usually needs only the seller's acceptance in order to go forward with a transaction.
However, in a short sale, the lender's approval is also needed in order for the sale to close.
A short sale occurs when a property sells for a price that is insufficient to pay back the loans secured against it and the seller's closing costs.

In such a case, the sellers either have to come up with enough cash to cover the shortfall, or their lender(s) must agree to forgive the amount that the sellers are short in order for the sale to go through.
Short sales have not been a big part of the home sale market since the recession of the early 1990s. At that time, home prices dropped as much as 20 percent in some markets.
Some sellers who purchased just before the recession with little cash down were unable to sell for a high-enough price to pay back the amount they owed.
A low cash-down payment at that time was typically 10 percent of the purchase price. During the past couple of years, many high-income, low-cash-down home buyers used no-cash-down, interest-only mortgages to complete their purchase.
If such a buyer is transferred a year later, loses his job or gets divorced and has to sell, a short-sale situation could occur, even if home prices haven't declined.
Here's why. A buyer who makes no down payment has no equity in the property. With an interest-only loan, the amount borrowed isn't reduced during the first years of the loan unless the borrower makes additional principal pay-downs.
If the mortgage is a pay-option variety that permits the borrower to pay less than an interest-only payment, the principal or amount borrowed could actually increase rather than decrease with each monthly mortgage payment.
Couple that with scant home-price appreciation and a seller could come up short even if he or she sold for the amount paid, once closing costs such as the brokerage commission and transfer taxes are taken into account.
HOUSE HUNTING TIP: Beware of sellers in short-sale situations who list their properties at below-market prices in order to entice buyers into making offers. Before getting serious, find out the amount of the loans that must be paid off to close the sale.
If the loan amounts total more than the sellers' asking price, then you will either need to pay more, or the seller's lenders will need to agree to accept less than they're owed.
That is, unless the sellers have savings to contribute to the sale.
Buyers who want to go ahead with a purchase that is subject to the lender's approval should be prepared for a longer-than-typical closing. Usually, the lender won't even take a short sale under consideration until the sellers have accepted an offer. It can then take three or four months before you'll know whether or not the lender will approve the sale.
THE CLOSING: Be sure to include a provision in the contract that allows you to withdraw at any time up until the lender approves the sale. This way you can get out of the contract without penalty if it looks like the transaction has little chance of closing.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books. Copyright 2007 Dian Hymer Distributed by Inman News.
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Old 04-23-2009, 11:22 AM
 
Location: the D
347 posts, read 1,355,184 times
Reputation: 171
Totally agree with 007 license to sell.
Be wary of short sales priced below market value.
But that is something to think about.
The comparable house prices that you see are from the last 6 months, and since real estate values have been falling over the last 6 months, it is a little difficult to decide on a price.

And yes, we had the clause in our offer that we could walk away on the day of closing if the house was not in the same condition as we had seen it the first time.
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Old 04-24-2009, 12:19 PM
 
Location: Both Miami and Baltimore
5 posts, read 17,178 times
Reputation: 13
Thanks. We are just waiting for a closing date now. Its been a week since the offer was accepted. I am still very nervous. I won't relax until we have a closing date.
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Old 04-24-2009, 12:24 PM
 
Location: MN
761 posts, read 3,409,283 times
Reputation: 447
Awesome! Ours is assigned to a negotiator as of Wednesday so now we wait while the short sale mitigator bugs him everyday for an answer.

If it doesn't work out, it sure was an experience I may say, you can compare it kind of to a time share sales presentation, (you will only do it once!).
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Old 04-24-2009, 01:36 PM
 
Location: Both Miami and Baltimore
5 posts, read 17,178 times
Reputation: 13
Good Luck!
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Old 05-15-2009, 10:05 AM
 
3 posts, read 9,094 times
Reputation: 10
I have been waiting for so long to buy a certain property across the street from me. I placed an offer of full asking price that very morning (the very first offer), showed proof of funds, signed signed a ton of paperwork, wrote earnest money check, and asked for an account for the money transfer. I was finished by 9:30AM. By noon I was called and told the bank wants to "wait and see" if a better offer comes along. At least they will tell me in 4 days if the offer will be accepted or not. There is a constant stream of Looky-Loo's wandering through the house I have wanted for a decade. It is heartbreaking and there is nothing I can do. Short sales seem kind of mean.
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Old 08-11-2009, 01:34 PM
 
4 posts, read 29,982 times
Reputation: 12
Could someone clarify for me dangers and consequences of extending more than one offer at the same time on different properties? Basically, if I put an offer on short sale and wait for the response, and during that time find another acceptable house. Can I put another offer? What am I risking? My deposit obviously, in case both offers get accepted, but besides that? Even with deposit, if my offer is accepted, I can still walk away if inspections find something wrong (and get the deposit back, correct?) Since with many offers on the same property, buying each particular might be a slim chance, it seems fair for buyers to be able to try for different properties, just like sellers can get many offers.
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Old 08-11-2009, 02:10 PM
 
Location: Palm Coast FL
2,394 posts, read 2,966,973 times
Reputation: 2805
Quote:
Originally Posted by DDevil View Post
First time home buyer currently looking to buy a house and I was told by a Realtor that buying a house on short sale takes a few months.

So assuming I make an offer that is accepted and then my wait is say 3 months, what do I do in the meantime?
Do I stop looking at other houses and miss out on other houses if this offer is rejected?

Or do I keep looking but not make any more offers because I can honor only one accepted offer?
Finally a question I can answer! This is what I do. I eat all day and I grind my teeth all night. I've gained 50lbs and my jaw hurts. Seriously.

While working and snacking, I check houses online and I keep a back up list in case this falls through. I also keep checking the prices of similar houses. I get references for yard care companies, bug guys, etc. I research appliances. I also drive by it often. I was never neurotic like this until I tried to buy a short sale.

Our first attempt to buy a short sale fell through, but this one is looking good. It's been 4 months so far. We expected an answer yesterday, but didn't get it. The first mortgage has approved our offer and now we're waiting on the second mortgage.

It does seem odd to pay for inspection if your offer hasn't been accepted.

And today my dentist said my teeth were fine, but that we should close soon to prevent any damage to them.
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