Archive for the ‘Helping Families’ Category

Question by advisor20: Has anyone dealt with a house that is a “short sale”?
I put a bid in on a house listed for short sale – it’s in pre foreclosure. Our bid is only k below asking price. It’s been a week and I have not gotten any response from the bid. This is going to be my second time dealing with a foreclosed home and it ending up going nowhere. I’m already approved for financing. It seems like every house I look at is in foreclosure

Best answer:

Answer by Lisa L
The company holding the mortgage has to agree to the short sale so that could be the hold up. Be sure you have an iron clad agreement from the company also. The attorney handling your closing needs to be in close contact with the mortgage company involved with the sale.

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Question by Holly B: What does this mean: “Bank approval required for short sale“?
I am looking at houses online for sale and I don’t know what this means exactly. I was hoping for an answer tonight – I’ll talk to my realtor tomorrow. Thanks!

Best answer:

Answer by trcharest
This only means that whatever is offered for the property, even though it may be full offer or better and the owner approves, the lender must approve of the amount so that they will know exactly what they will get from the sale.

“Short sale” means that the lender will be getting less than what is owed. This is also a lengthy process. I could take more than a several weeks to get a response from the lender.

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Question by #3 due 4/10: Has anyone ever been in a sale of a “Short Sale” and actually have it go through?
I am waiting to hear back from the bank on an offer we made and it’s a short sale. It seems as though these are very hard to close from what I hear

Best answer:

Answer by Marina R
We just closed on one, it took about 2 months to process, sale price 375,000 loan amount 495,000.

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Question by Radman: What should I know about buying a “short sale” house?
I understand there is no warranty and the buyer has to pay all the closing costs. Can I offer lower than the short sale listing price?

Best answer:

Answer by patrick
You can always offer less than asking. in addition, if you are using a real estate agent, you need to make sure the commission costs are included in the purchase price.
Be prepared for a long process. Bank owned property sales move at a snail’s pace. Often, the bank cant find the deed, because the mortgage has been sold so many times, so it would be prudent to ask if the bank has possession of the deed early in the process.

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Question by oldyogi: What does it mean when a property is listed as a “short sale?”?
I’ve seen several houses that note that the property is for sale as a ’short sale’ but don’t understand what that means to me as a buyer.

Best answer:

Answer by Kristy
The owner wants to sell the property before it goes into foreclosure. It had to sell quicly.

To you as a buyer, you’ll get the house at or below market value.

It is best to speak to a Real Estate Attorney when looking into short sales (which you need anyways when buying a house)

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Question by rebecca4444: How does a “short sale” work?
I am going to look at a home next week that is listed at a good price but it’s a short sale. I’ve been told that these are very hard to close. What can I expect?

This home is listed at 0,000 and I am ready to offer 0,000. Is it true that it takes months and a lot of times these homes go for more than the original listing price???

Best answer:

Answer by micki
You’ve been misinformed or are confused…

A short sale is just a way of saying that the lending agent (most cases the bank) who wrote the mortgage to the buyer of the house agreed to take the house back from the buyer -then owner- for less (“short”) the full pay off amount of the mortgage so that they were not forced through a foreclosure.

It shows up on the credit report as a short sale rather than foreclosure, although it has much the same effect…course no one tells them that since there wouldn’t be much reason from a credit point of view to give them a dime if it’s still going to negatively impact their credit rating!

It should not be difficult at all to purchase a property that’s been returned to the mortgage holder or take any longer. They have no right to ask you to pay more than the going rate for this property…if they’re trying to tell you they do and it’s because it’s a short sale, run screaming in the opposite direction because they are trying to actively defraud you and you’re better off without this property or further dealings with them.

Generally speaking, as much as they like to poor mouth it, they don’t lose a dime on their original loan amount when accepting a short sale, so there is no reason to pass that assumed/proposed loss on to the next buyer. What they “lost” money on was the expected earnings from the interest over the full term of the loan. Understand? Banks don’t like it when a borrower pays off a mortgage early…it cuts into their expected profits since the pay off is less 100% of the interest from the date of pay off until the end of the term (and it will make you sick to see how much money that is.)

Your realtor has access to the records that will show you exactly what the last owner paid for the house and what the bank accepted as a short sale…telling you exactly if and how much they lost on that original loan. If you don’t have a realtor, definitely get a real estate attorney to help you sort through all this and he will have access to all the same documents.

There should be no more issues with closing this type of property than any other, just make certain the title work is done and you have title insurance so that the previous owners “mis-conduct” doesn’t haunt you.

Good luck!

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Question by R1980: Real Estate: What does “act cont short sale” mean on a MLS listing?
Real Estate: What does “act cont short sale” mean on a MLS listing?

Best answer:

Answer by Landlord
It is for sale, but the owers have submitted an offer to the bank already. The bank has not accepted it.

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