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10/30/2020 2:42:12 PM
Posted: 4/19/2008 8:58:29 AM EST
I have found a house in a area that I am really interested in, its priced better than all of the other homes but my real estate agent has been strongly cautioning me to stay away.

He was saying it takes for ever and at any time the bank could say no
Link Posted: 4/19/2008 9:05:28 AM EST

Originally Posted By 1911greg:
I have found a house in a area that I am really interested in, its priced better than all of the other homes but my real estate agent has been strongly cautioning me to stay away.

He was saying it takes for ever and at any time the bank could say no


I just bought one myself... it just means the owners curently owe more than they are selling for... ie. they are "upside down" and may have to negotiate with their own lender to get their loan balance reduced or risk forclosure...
Took 30 days for me and I am moved in!


J
Link Posted: 4/19/2008 9:07:37 AM EST
[Last Edit: 4/19/2008 9:07:51 AM EST by thelastgunslinger]
In a short sale the owner is trying to convince the bank to accept less than the amount owed.

The negotiations can be long and complicated and the bank can indeed withdraw at anytime.

On the other hand, it is one of the cheapest ways to buy a house.
Link Posted: 4/19/2008 9:12:03 AM EST
Nothing wrong with them if you're patient and don't mind losing at the last minute.  Every bank is different in how they handle them so there's no one way to go about it.  Before writing and offer find out where they are in the process.  Has the buyer sent his financials to the bank and his hardship statement?  Has the bank ordered the appraisal?  Has the bank approved the a short sale?  Are there any other offers on the table?  

It can work, but honestly most of the time it doesn't.  Just be patient.
Link Posted: 4/19/2008 11:14:10 AM EST
ok thanks for the info.  only problem i see is if something else pops up on the market while they are thinking about it.
Link Posted: 4/19/2008 11:15:46 AM EST

Originally Posted By 1911greg:
ok thanks for the info.  only problem i see is if something else pops up on the market while they are thinking about it.



Big deal, you can always withdraw your offer if they haven't yet accepted. The downside for the realtor is less commission.

Link Posted: 4/19/2008 11:27:51 AM EST

Originally Posted By Ponyboy:

Originally Posted By 1911greg:
ok thanks for the info.  only problem i see is if something else pops up on the market while they are thinking about it.



Big deal, you can always withdraw your offer if they haven't yet accepted. The downside for the realtor is less commission.



ahh now i see why they dont like them. Whats the %?
Link Posted: 4/19/2008 11:33:30 AM EST

Originally Posted By 1911greg:

ahh now i see why they dont like them. Whats the %?


It can vary, but usually about 3% per side. So if there are two realtors they will get 3% each but if a single realtor has the listing and the buyer also uses them to buy the house then they get both sides or 6%. It's not set in stone and can be negotiated in most cases.
Link Posted: 4/19/2008 11:34:46 AM EST
IMO, more hassle than it's worth unless you are an investor.
Link Posted: 4/19/2008 11:38:33 AM EST

Originally Posted By kraftwerk:
IMO, more hassle than it's worth unless you are an investor.



It depends on the house. If you're looking for something nice it's not uncommon to save $100k or more. You must have a lot more money than me if $100k isn't worth a little hassle.
Link Posted: 4/19/2008 11:40:54 AM EST

Originally Posted By kraftwerk:
IMO, more hassle than it's worth unless you are an investor.


Not true. I got my house on a short sale this past december. It had been on the market for a bit, price lowered 3 times when I was shown it. Took me 3 weeks to close on it, with no hassles.



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