Offer on a short sale from abroad - plausible or insane? (Gilbert: renters, HOA fees)

[Captain Bill]

Originally Posted by Guitarmaan

I thought I'd run this by the smart folks on this forum....

In view of short sales taking forever to be approved, could it be a viable plan to make an offer on one from abroad when your arrival date won't be until a few months anyway?

Obviously buying a home without seeing it breaks all the rules. But having seen it once you arrive in Phoenix you could either continue with your offer or withdraw it?

I don't know where the law stands or the procedure we'd go through to offer on a US home when we are still in the UK. I do have US permanent resident status and my wife is American. We'd pay cash.

Basically I have seen a home in Mesa and I really like. It's listed as pre-foreclosure and short sale approval required. I'm also not sure exactly what that means.

Pre-foreclosure means the owner has received a Notice of Trustee Sale (NOTS) and the bank can sell the home at the Trustee Sale after 90 days (foreclosure).

Short sale approval required means that the lender must approve the short sale. Short sale means the lender will receive an amount "short" of the amount due on the mortgage. Therefore, the purchase contract between buyer and seller is contingent on the sellers lender approving the sale at that price. The lender may counter with a higher price.

I would not consider buying sight unseen unless I was already working with someone who knows exactly what I want, and I've had experience working with and know I can trust that person.

I was working with several out of country investors who were buying 5-6 homes each. They were here during a couple of their purchases. After they learned how I worked, and knew they could trust me, and I knew what they wanted, they bought sight unseen. However, I sent lots of pictures so they had a much better idea than the pictures on the mls sheet.

Those were also investment properties, not homes they were going to live in.

If you're going to live in a home it will be different. You will want to be more selective in a home and it's amenities. Therefore, it may be best for you to wait until you get here so you can take your time to find what may suit you better.

You will probably pay a little higher price, but the prices are still very low. However, you will be more sure of what you're getting, and that is worth something.

[Guitarmaan]

Originally Posted by Captain Bill

If you're going to live in a home it will be different. You will want to be more selective in a home and it's amenities. Therefore, it may be best for you to wait until you get here so you can take your time to find what may suit you better.

You will probably pay a little higher price, but the prices are still very low. However, you will be more sure of what you're getting, and that is worth something.

Yes I think you're probably right. I also have to keep my wife happy, not just myself. She's very much into how a property looks, while I'm interested in the practical issues only

I'm aware we may have to pay more later, but such is life. If we find somewhere that ticks most of our boxes we'll be happy enough. Thankfully we didn't buy in 2006/2007.

[Zippyman]

With as close together as many homes in Phoenix are, your quality of life can be affected by your neighbors substantially - I've gotten to the point that I knock on doors before writing an offer, even on a rental home, and those five-minute conversations are priceless. The one deal I was involved in where I didn't meet the neighbors before writing an offer was an excellent investment, but I'm counting the days until the ll next-door evicts the "Jerry-Springer" rejects from the home.

[themudpuppy]

Originally Posted by Zippyman

With as close together as many homes in Phoenix are, your quality of life can be affected by your neighbors substantially - I've gotten to the point that I knock on doors before writing an offer, even on a rental home, and those five-minute conversations are priceless. The one deal I was involved in where I didn't meet the neighbors before writing an offer was an excellent investment, but I'm counting the days until the ll next-door evicts the "Jerry-Springer" rejects from the home.

Zippyman, what kind of questions do you ask the neighbors? That's what I want to do, but not sure how to break the ice and what to ask, as I'm pretty shy in person. Neighbor problems are my biggest concern when buying there, as the homes are so close together, so I'd like to get an idea of how the neighbors are.

For my last 2 homes, I would walk around the neighborhood at different times of the day and night, to get an idea of how noisy it was. Now, with multiple offers being made on most homes in my price range on the day they're listed, I won't have that luxury. If I see a home I like, I'll have to place an offer that day if I want any chance of getting it, which doesn't leave much time to get a feel for the neighborhood/neighbors.

[rgscpat]

Given the expense of buying a home, might it not be worth while to fly to the states for a few days to establish a relationship with an agent, take the pulse of the market, and get your spouse's reaction to some possible homes?

[khuntrevor]

Originally Posted by Guitarmaan

I thought I'd run this by the smart folks on this forum....

In view of short sales taking forever to be approved, could it be a viable plan to make an offer on one from abroad when your arrival date won't be until a few months anyway?

Obviously buying a home without seeing it breaks all the rules. But having seen it once you arrive in Phoenix you could either continue with your offer or withdraw it?

I don't know where the law stands or the procedure we'd go through to offer on a US home when we are still in the UK. I do have US permanent resident status and my wife is American. We'd pay cash.

Basically I have seen a home in Mesa and I really like. It's listed as pre-foreclosure and short sale approval required. I'm also not sure exactly what that means.

I've bought three without looking. It is clearly a form of gambling. Condos are more commodity oriented, and high rises even more so and would give you more consistent results. You have a period to review the condo docs and you can kill the deal if you don't like their books, etc.. Using a combination of satellite maps, demographic/school data, and public records will get you a good deal. I also recommend the soils maps which have been posted here. Probably the biggest factor for a foundation.

[ReadyFreddy]

I've gotten to the point that I knock on doors before writing an offer

Wow, that is thorough. So you don't offer if you immediately don't like the person or if their house is unkempt or they have a dog that barks or many kids or something? I too am usually far more concerned with neighbor issues than anything else in a move, but I think if I had to find a place where the neighbors all passed a mini-interview/inspection of mine first AND get my offer in on time, it'd take me 10 years to find a place.

[Zippyman]

Originally Posted by tnp

Zippyman, what kind of questions do you ask the neighbors? That's what I want to do, but not sure how to break the ice and what to ask, as I'm pretty shy in person. Neighbor problems are my biggest concern when buying there, as the homes are so close together, so I'd like to get an idea of how the neighbors are.

For my last 2 homes, I would walk around the neighborhood at different times of the day and night, to get an idea of how noisy it was. Now, with multiple offers being made on most homes in my price range on the day they're listed, I won't have that luxury. If I see a home I like, I'll have to place an offer that day if I want any chance of getting it, which doesn't leave much time to get a feel for the neighborhood/neighbors.

The neighbors have always been quite nice, if they answer the door, if they don't, then that in itself is an answer (if there are cars in the driveway). I'd agree, your odds are 50-50 of meeting anyone if you have to get your offer in today, but most neighbors are really scared when the place next door goes up for sale & they don't want bad neighbors either. When they see that you aren't a slumlord or a bum, they'll often open up & let you know things about the neighborhood. My current neighbor was overjoyed when we bought our current house, having a vacant house next door gave her the willies.

[khuntrevor]

people don't answer to strangers in some pretty nice areas.

[Zippyman]

Originally Posted by ReadyFreddy

Wow, that is thorough. So you don't offer if you immediately don't like the person or if their house is unkempt or they have a dog that barks or many kids or something? I too am usually far more concerned with neighbor issues than anything else in a move, but I think if I had to find a place where the neighbors all passed a mini-interview/inspection of mine first AND get my offer in on time, it'd take me 10 years to find a place.

In my case, we had terrible neighbors in the house we rented, and after that experience, I'd rather sleep in my car than go through that again. I only knock on the doors directly adjoining the house - its definitely not an interview, but i did pass on one house where five poodles ran out when she answered the door.