Short Sales

[Bill Keegan]

Originally Posted by oneasterisk

I would expect it to be somewhat discounted because if the current residents are no longer able to pay for the mortgage, then more than likely maintenance or care has been deferred on the property. Not always the case, but what I've seen from touring homes the past few months. Also the residents are motivated to get out of the house so they will accept a lower price than a traditional sale, not to say the bank(s) will approve that price but it can happen.

Fair enough. But that's a discount for the condition of the home, not for the financial status of the owner. And that's to be expected.

[VivaLaEvie]

Originally Posted by VivaLaEvie

We went ahead and did an inspection on the house before we had a final agreement of sale. We knew we were getting close to having a deal, and that once we did, it could close very quickly. Because our schedules are very hectic and unpredictable, we decided to go ahead and do the inspection when we were both available and could devote the attention to it that it deserved.

It also allowed us to be sure we wanted the house before waiting for the entire, excruciating process to go through. It was worth it to us to sacrifice a few hundred bucks in the interest of getting it done and out of the way. Now, once we have our final deal, we can just sign the papers and get it closed in a couple of days.

In the interest of full disclosure, we ended up bailing on this house. We could not get the 2nd mortgage holder to agree to the terms, so we are our our inspection money.

I think for us, the few hundred dollars isn't really the point (part of it, but not the whole issues), but doing inspections does put you in the house and make you really think about it being yours. So if the deal doesn't go through, it is a disappointment.