Short Sale Timeframe - Beat the 1st time homebuyer deadline!? (2010, real estate)

[AtlantaGal]

Greetings!

I recently saw an amazing townhouse - it is an approved short sale. Currently listed at $200k - started off at $265k in early June 2009. Every week it has basically dropped 5 - 10k. Also, this townhome is no longer occupied (I know many short sales are still occupied by the owners, but this one is not).

Okay, so in short, I'm a first time homebuyer and I'm trying to qualify for the tax credit - so I must close by November 30th. Because of situations with my new job - I will not be able to get my finances fully qualified until Sept 1st. So, I don't think I'd be able to submit a legitimate offer until I get those qualification papers. I've heard (and read) that short sales take forEVER to close - do my chances look good that I'll be able to close on this property by Nov 30th?

BTW (in case this matters) I haven't looked @ comps yet, but I'm sure this unit is priced as a GREAT deal and I'm willing to offer verrrry close to asking price. Is that likely to help the deal go faster if I offer close (or exact) asking price?

Thanks In Advance

[Liza54]

AAAH...I'm in the same situation and will just die if I don't get that 8k- that's huge to me!! With this short sale, it would be cutting it soooo close. I can't imagine they won't extend it past Dec 1, even if it's to Dec 31st, but you never know..

[chet everett]

Several separate and important issues.

FIRST: The reason short sales take a long time to close is that lenders generally have a bizarre and mixed up process to ACCEPT any offers on a short sale. If you can get an answer with a high degree of HONESTY from the SELLER and their AGENT as to what conversations have taken place with the LENDER you will have a much better idea of what the LENDER truly expects to happen with this property. If the lender is satisfied that they are MOST LIKELY to take the SMALLEST LOSS by accepting a short sale then MAYBE they can close in a timely fashion.

SECOND: I have seen many REO properties that have recently gone to "cut a fixed amount in regular increments". These tend to be vacant. ARE YOU SURE this is not REO? Is the "home owner" / borrower really current? Are the staring down foreclosure??? If this goes to foreclosure the TIMETABLE for the courts in EACH STATE vary widely...

THIRD: All sellers, including sellers with a lender breathing down their necks, MUCH prefer a buyer that is fully qualified and ready-to-close ASAP as a starting point. If that is no you right now MAYBE you should not be shopping.

FOURTH: First time home buyer credit is A BAD REASON to buy a starter home. Do NOT rush to "get a deal" for the $8K. You will be much better off buying when your finances are in order. My gut tells me that with the recent action on the "cash for clunkers" there will be other options when it comes to helping to keep real estate moving...

FIFTH: Nothing is good deal without knowing the comps AND knowing the DETAILS of the townhouse you are considering. There are WAY TOO MANY over priced properties in way too many communities, many of which also have some very very shaky reserve funds / condo board situations. BE VERY CAREFUL!!!

[AtlantaGal]

Thanks Chet for your insightful words!!

In response: I am very well aware that I need to know the details of the property before submitting an offer - I fully intend to continue my research (this forum is just one avenue to get little answers to random questions). Also, I understand that buyers must be fully qualified - which is why I stated I will not be submitting an offer without all of my ducks in a row... which is why I asked the likelihood of being able to close by Nov 30th with an offer submitted early September as oppose to now. I'm not shopping just yet - I'm researching - which I figure is a good way to start; before shopping. Also - the 8k tax credit is not a reason for my first time home purchase - it's an incentive. If you had the $$ to purchase a brand new shiny car and planned to in 2010 - but was then told that govt would give you $2k to purchase that brand new shiny car by December 2010... that $2k is an incentive..an "extra"..but certainly not a "reason"... you planned to purchase anyways. You've been saving for this car for years, your finances are in order, and the $2 would be a great addition.

Thanks for your add'l information. I will certainly inquire about the REO situation. I just saw the property today and will have my realtor look into this (and I'll try my hardest to do more research on this end!)

Thanks again!!