Short sales ?

Dh and I have been house hunting since dec. we haven't looked at any short sales because our realtor really steered us clear of them. There are a few short sales we are interested in. I know the risks of waiting for both the homeowner and than the bank to make decisions. We aren't in a rush to move so we have the time to invest. What are the other drawbacks? The realtor we were using basically felt that most people in short sale really don't want to sell their homes and play games. Any insight is greatly appreciated.

Message edited 3/17/2014 10:09:07 AM.

Re: Short sales ?

From my experience you're realtor is right. There is a small chance they work out, but it has taken a very looong time. We have had a few issues with short sales since DH is a contractor and into flipping houses. There has been nothing but headaches. The lawyers even start to give up.

Re: Short sales ?

What if the home in not occupied by the homeowner does that make it any easier since they homeowner isn't looking to hold onto the house? Are they really not worth looking at?

Re: Short sales ?

I'm short selling my house right now. As the seller, I will tell you that it really s*cks. The waiting can kill both the buyer and the seller. It's stressful for BOTH parties. If you're not in a rush and understand that you could be waiting months to hear from the bank (who may not even approve the offer), then you could get a very good deal. Many short sales also need work though, so that's something to keep in mind. My buyer will be making out very well if the deal goes through! So for the most part, your realtor is correct.

Where s/he is wrong however, is about the seller playing games. I know I'm only one case out of god knows how many, but think about it like this: people who are short selling their homes want out. or need out. And for whatever reason (and there are many) cannot afford to do a traditional sale. There is no reason for the owner of a short sale to even care too much what the offer is because they aren't profiting. The perk for them is that they're getting out without having to owe a lot of money. At the end of the day, it's only the bank that cares. In my case, my home Take it from someone who is on the other side - there is absolutely no incentive for a seller to play games.

Short sales ?

i sold my first home through a short sale and for me, the seller, it was a very smooth process. contracts were signed around december and we closed in may. as long as you're not in a rush you can really get a great deal.

Message edited 3/17/2014 11:56:37 AM.

Re: Short sales ?

Message edited 3/17/2014 12:12:41 PM.

Re: Short sales ?

Short sales ?

I purchased a short sale almost a year ago. The sellers (divorced) just wanted out so they signed. Your issue is really how involved is the bank. I was luck to have the sellers realtor was really into moving this property for the bank. She knew everything and had a contact within the bank. Our bank and lawyer were very involved and as long as all the documents are signed and sent correct, there shouldn't be an issue. Short sales from what i heard have a tendency to sit until some review process some time down the road.

We figured we had time to save more money cause of a short sale. WRONG! We ended up closing just over 35 days or so on the signed contract. Everybody was surprised everything move so quick and easy. I believe it was possible again cause of the selling Realtor knowing the situation, how much was required to move it and making sure the bank had everything they needed, when they needed it.

And yes, we were afraid to look at them to and we said what do we have to lose other then time as there was nothing else really on the market. It proved to be our happy home!

Message edited 3/17/2014 1:05:18 PM.

Re: Short sales ?

Re: Short sales ?

Re: Short sales ?

I was first going to rec the LIF agents. Secondly, I think it depends on the situation. If it's sadly due to a divorce, I'd imagine it would be a little easier. There have been a few people who posted about people losing their home and trashing it as a big F U to the bank because they probably couldn't afford it to begin with. I also heard of one where there were renters involved which would raise a red flag. I have good friends who got a short sale in Lindenhurst for their dream home and it was a divorce situation. It was stressful though because for them, the bank took months and months. They sold their first house which was good but had to couch surf with a young child in the meantime.

Re: Short sales ?

We just closed on a short sale in September. It took 9 months from the day we signed the contract to the day we actually closed...

I can definitely vouch for Beth! It was a bit of a nightmare situation (the seller's bank, missing documents, the lawyer., etc) but Beth was able to get the job done, which included calling the seller's lawyer on a daily basis We were able to get the house for below market value and we've been renovating since September. It's been a long process but we finally just moved in a few weeks ago and it's coming along