Short Sale ???

So, after MONTHS of searching and a few offers we found a house. We are going to see it tonight. Anyhow, It is a SS. so, my question is I know with SS the bank can really hold out for the best offer. If we offer list price will they still wait? Is it possible we can close before the credit deadline. Am I crazy for thinking it will go that easy??

Re: Short Sale ???

there are A LOT of things that can affect the outcome...

we bid on a short sale, waited for 5 months and didn't get the house

and

we bid on another short sale and closed last week!

find out how many mortgages are on the property - hopefully it's just one....if it is your chances of success will increase....dealing with 2nd mortgages can be an issue especially if it's with a different lender than the 1st mortgage....the HELOC on the first short sale we bought was the reason the deal fell through....

when you make your offer do a contingency that the seller will not submit any other offers to the bank - usually you have to have a really good offer to get the seller to agree to that....but if they do, they can't submit any other offers to the bank which again will increase your chance of success...

short sales typically take 3-6 months so i doubt you'll close in time to get the tax credit....

the first short sale we submitted an offer in Jan and it took until the end of May for us to walk away b/c the deal wasn't going to be able to go through....

with the second short sale (our house!!!) it took about 2 weeks to get approval and then 30 days to close...we made an offer in mid July and closed Sept 4th....

Good luck!!!

Message edited 9/11/2009 9:58:30 AM.

Re: Short Sale ???

we bid over asking price, held out from oct-march. never heard a thing. we found another house, pulled our offer out. was told it was the highest.

the short sale sold a month later.

Re: Short Sale ???

find out if there is a bank approval, meaning someone else went through the process to put an offer in and the realtor heard back from the bank with the lowest # they are willing to accept. That is huge, because you might not even consider it then

2nd thing I would say is, I can't see you getting the tax credit because it usually takes awhile to hear back from the bank. you put the offer into the homeowner. They accept and you go into contract with the homeowner. then its submitted to the bank for approval. That can take anywhere from 1 week- several months.

If this house could be "the house" I would sacrifice the 8K because in the end 8k isn't going to give you something another house might be lacking, but can close quickly.

Make sure you do your home inspection prior to your offer going in. Short sales are usually sold as in and a bank will not allow a home inspection clause. (meaning you can't back out of the deal if it has a horrible home inspection) Be prepared to, that they usually need at the minimum a pre qualification letter sometimes even pre-approval from a bank, before even hearing your letter. so to speed up the process, get that done if its not done yet.

GL! Remember if its meant to be, it will work out!

Re: Short Sale ???

ohh yes -the inspection - i forgot about that one!

we had a contingency that we had 10 days to inspect after bank approval and if we didn't like the inspection we could walk away.....

our realtor protected us - she put a lot of things into contract that would benefit us - like having the seller only submit our offer and being able to do an inspection as well....

Re: Short Sale ???

Thx all. We are skipping it. It isn't even approved yet for a SS, and I WANT that credit. Also, it wasn't even "the house" at this point we are settling. "The House" the lady WON'T budge on price. So we will continue to look. Thanks again.

Re: Short Sale ???

Re: Short Sale ???