U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Virginia > Northern Virginia
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 03-16-2010, 06:25 AM
 
53 posts, read 134,701 times
Reputation: 20

Advertisements

We are thinking of moving to the Gainesville/Bristow/Haymarket area this summer from Boston. Over 50% of the homes that come up in our search are foreclosures or short sales.

Has anyone bought a foreclosure or short sale? How difficult is it (especially considering we will be out of state during the process)? Anything we should know about the process would be appreciated.

TIA
Liz
Reply With Quote Quick reply to this message

 
Old 03-16-2010, 07:22 AM
 
Location: Censorshipville...
2,678 posts, read 6,239,535 times
Reputation: 1544
Here's my story from last year: Buying my first foreclosure...

My advice is to get a good realtor that you trust and can work with. They will be your go-between to the bank so hopefully they've worked with foreclosures/shortsales and the selling realtor has experience with shortsales and foreclosures. It can be a hair pulling process at times I'll tell you, but I had a good experience overall.

I hope you'll come down for the house hunting and inspection process. Since the homes are foreclosures/shortsales the previous owners/owners would not always take care of them. The inspection may turn up some things so it'd be a good idea to be onsite when that goes on.

Good luck!
Reply With Quote Quick reply to this message
 
Old 03-16-2010, 07:32 AM
 
309 posts, read 737,496 times
Reputation: 99
We bought a foreclosed property last year and it was definitely more difficult dealing w/ the bank than with a traditional sale mainly because of delayed response from the bank on a number of fronts. This was very frustrating and had us scrambling at the last minute on a couple of items. I agree with the previous poster, you need to find a realtor that has experience with foreclosed and/or short sales. You will find a lot of realtors will not deal w/ short sales or have very limited experience. I also live in Bristow and we were interested in a short sale at one point and where our realtor had given us the pitfalls of trying to go for a short sale he did say this particular listing realtor of the short sale was the "guy" that makes it happen. I'll ping him today and get the name
Reply With Quote Quick reply to this message
 
Old 03-16-2010, 08:46 AM
 
Location: Northern VA
22 posts, read 44,533 times
Reputation: 20
Hello

I have assisted a lot of buyers in buying short sales and foreclosures. I even list them for sale.

My advice to you is simply to not limit yourself to only these listings. The other 50% of the market is often competitive in price since they otherwise have a difficult time selling at a much higher price. If you find one that is the "best deal" then go for it.

What you should be aware of in the beginning is that you are buying the home "as-is." No one is going to make repairs for you. However, you can have inspections done for your informational comfort.

Foreclosures move rather quickly since the bank has already set the price. The bank has not approved the price on a short sale from the time of the listing so you get to wait through the process which can take from 2-12 months. Most of them take only a few months. Depending on how many banks are involved this process gets more involved. This is the most frustrating part of the short sale.

The good news is that you have ways out of the contract (assuming your agent writes in contingencies to protect you) in case you get tired of waiting for the bank to respond or find a better home.

I hope this helps.

Jonathan Bunn- Realtor
Century 21 Redwood Realty (required by law)

Last edited by FindingZen; 03-16-2010 at 08:49 AM.. Reason: borderline advertising
Reply With Quote Quick reply to this message
 
Old 03-16-2010, 09:43 AM
 
845 posts, read 2,067,598 times
Reputation: 296
What percentage of shorts have seconds? That's why I wouldn't touch them. I have bought three foreclosures. One Credit Suisse, one First Horizon, one Sercretary of HUD. Some of the experts are calling for 7 million more foreclosures.
Reply With Quote Quick reply to this message
 
Old 03-16-2010, 10:00 AM
 
Location: Northern VA
22 posts, read 44,533 times
Reputation: 20
Great question... To be honest, I don't know the exact answer. From my experience, around 65% of them do. This is just a guess.

This is from the days were almost everyone got more than one loan to avoid paying for mortgage insurance. People would get an 80% loan and then get a 20% loan or a 10% loan to pay for the difference in what they were putting down.

This has changed over the past couple of years as the sub prime market has gone away and we are seeing more loans with only 1 trust and mortgage insurance.

Jonathan Bunn
Century 21 Redwood Realty (required by law)
Reply With Quote Quick reply to this message
 
Old 03-16-2010, 10:36 AM
 
309 posts, read 737,496 times
Reputation: 99
There was a great article in the Post on Saturday regarding new short sale legislation, etc
Reply With Quote Quick reply to this message
 
Old 03-16-2010, 10:51 AM
 
Location: Heart of Dixie
140 posts, read 226,862 times
Reputation: 138
I've been watching the Bristow/Gainesville market for almost 6 months. We're moving there from California in June.

From what I've experienced talking to multiple lenders, many short sales are underwritten by overseas investors. They have to approve unloading their investments at a loss before the bank will approve the sale. Given that some of these investors can be in India, China, etc, it can take many months to get them to release the investment. Once that happens, the bank wants to move fast, so you have to be ready.

Pretty much anything built from 2002-2007 is going to be a short sale. Prices were so inflated during that time that unless someone had $300,000 down, they are now upside down on their mortgage.

Since we're moving 3000 miles to get there, I'm not even going to try and do a short sale. At least in Boston you could drive down in a day.

B
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Virginia > Northern Virginia
Similar Threads
View detailed profiles of:
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 08:04 AM.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top