Short sales...

[EmpirE231]

I know they're a "nightmare" to deal with... but say a house is a short sale listed price @ 250k .... can you offer less? offer same or more? what's the best strategy to actually pick one up?

and what's the usuall length for response? 30 days?

the house is a major fixer upper... like ripped out cabinets, holes in the drywall etc.. overgrown weeds.

 

[River Runner]

Call Meagan Hall 626-665-8029

She is my wife and a Real Estate Agent, She can help you with any info you need, her family has been buying houses like this for years and either selling them or renting them. She can provide you with all the help you need. Just tell her that her husband told you to call. my name is Joe.

 

[Outnumbered]

You can offer anything you want. You may or may not get it. Even if you offer over list it does not mean you will get the house, even if you are the only offer. Short sales have to be approved by the lender/bank with the "mortgage". Unless it is a pre-approved short sale it can take several weeks or even months. It really depends upon which lender and what kind of mood they are in. In other words results may vary. The lender will only approve the deal if they feel like it is the best business decision at the time.

Good luck!

 

[Yellowboat]

offer what you want to pay...

 

[locogringo]

I know they're a "nightmare" to deal with... but say a house is a short sale listed price @ 250k .... can you offer less? offer same or more? what's the best strategy to actually pick one up?

and what's the usual length for response? 30 days?

the house is a major fixer upper... like ripped out cabinets, holes in the drywall etc.. overgrown weeds.

Agents will typically list a house for what they feel a BPO (bank appraised value) would come in at. Sometimes what it is listed at is still high in comparison to the market and area.

Many times, agents go as far as listing that it is a short sale when in reality they are just "hoping" that the lender(s) will take less than what is owed.

Here are some important facts to consider:

1. If they have it listed as a short sale, make sure that it truly falls under that classification. Just because a homeowner may owe more than a property is worth doesn't mean that he is behind on payments. From what we have seen, a short sale works best when a property is at least three months behind on payments. With the rate of increased defaults, it is safe to say that banks are definitely more open to reviewing a short sale offer these days even if a borrower isn't behind yet on payments. It is a tougher road to traverse though.

2. Negotiating on short sales is a specialized technique though that requires complete paperwork, an understanding of what to say to the loss mitigator handling the file and substantiating the offer you want to have presented. Make sure your Realtor (or the service she/he is using) is skilled in successful short sales.

3. Based on your offer amount and how capable the people working on the short sale submission are, it could take up to a few months to get back an answer.

Based off of what you said here and that the house is trashed, if the value of the house after it was all repaired is $300,000, my own offer would be starting at $140,000 and there is a 60-70% chance it would be accepted based off of the condition.

Hope this helps and good luck!

Danielson

 

[Ziggy]

Some short sales can take months to get approved. Many factors involved, and some will wait for multiple offers and take the highest bid....which still may get rejected by the bank.

 

[EmpirE231]

Agents will typically list a house for what they feel a BPO (bank appraised value) would come in at. Sometimes what it is listed at is still high in comparison to the market and area.

Many times, agents go as far as listing that it is a short sale when in reality they are just "hoping" that the lender(s) will take less than what is owed.

Here are some important facts to consider:

1. If they have it listed as a short sale, make sure that it truly falls under that classification. Just because a homeowner may owe more than a property is worth doesn't mean that he is behind on payments. From what we have seen, a short sale works best when a property is at least three months behind on payments. With the rate of increased defaults, it is safe to say that banks are definitely more open to reviewing a short sale offer these days even if a borrower isn't behind yet on payments. It is a tougher road to traverse though.

2. Negotiating on short sales is a specialized technique though that requires complete paperwork, an understanding of what to say to the loss mitigator handling the file and substantiating the offer you want to have presented. Make sure your Realtor (or the service she/he is using) is skilled in successful short sales.

3. Based on your offer amount and how capable the people working on the short sale submission are, it could take up to a few months to get back an answer.

Based off of what you said here and that the house is trashed, if the value of the house after it was all repaired is $300,000, my own offer would be starting at $140,000 and there is a 60-70% chance it would be accepted based off of the condition.

Hope this helps and good luck!

Danielson

very good info!! I assume it's way behind on payments, due to the condition of the house.. and it's empty... abandoned.. no trespassing signs etc. I would say fixed up.. in todays market would put it in the mid-high 300's . what offer should I put in? I'll be talking to my agent later today. the people listing it say short sale professionals? so we'll see how that goes.

I was thinking 200k... but based of what you said... would an offer of 18-190 be wayyy off?

 

[Ziggy]

very good info!! I assume it's way behind on payments, due to the condition of the house.. and it's empty... abandoned.. no trespassing signs etc. I would say fixed up.. in todays market would put it in the mid-high 300's . what offer should I put in? I'll be talking to my agent later today. the people listing it say short sale professionals? so we'll see how that goes.

I was thinking 200k... but based of what you said... would an offer of 18-190 be wayyy off?

I just bought a house at auction a few days ago.....scary thing to do.

 

[Outnumbered]

very good info!! I assume it's way behind on payments, due to the condition of the house.. and it's empty... abandoned.. no trespassing signs etc. I would say fixed up.. in todays market would put it in the mid-high 300's . what offer should I put in? I'll be talking to my agent later today. the people listing it say short sale professionals? so we'll see how that goes.

I was thinking 200k... but based of what you said... would an offer of 18-190 be wayyy off?

No disrespect intended but if you are asking these questions here you need a new Realtor. Find a pro, not a friend or relative with little to no experience. This is a major investment, don't base your offer off of internet forum info. We don't know enough info to make informed advice as to a specific offer. Your Realtor needs to do a complete CMA and help you decide on how to structure the offer. An experienced agent will make a world of difference and save you money as well as grief.

Good luck!

 

[boatnam2]

I know they're a "nightmare" to deal with... but say a house is a short sale listed price @ 250k .... can you offer less? offer same or more? what's the best strategy to actually pick one up?

and what's the usuall length for response? 30 days?

the house is a major fixer upper... like ripped out cabinets, holes in the drywall etc.. overgrown weeds.

You can offer less but it was my experience after looking for a home to buy, most short sales are way under priced to get mulitple offers plus the loan deal is tough right now and trying to get a loan on a house that is all torn up may be a chore.

 

[EmpirE231]

No disrespect intended but if you are asking these questions here you need a new Realtor. Find a pro, not a friend or relative with little to no experience. This is a major investment, don't base your offer off of internet forum info. We don't know enough info to make informed advice as to a specific offer. Your Realtor needs to do a complete CMA and help you decide on how to structure the offer. An experienced agent will make a world of difference and save you money as well as grief.

Good luck!

none taken... I played phone tag with my agent yesterday.. and made a call today.. but not sure if he's in town. he's not family... actually one of the best agents in my area. I was just asking on here, because I knew there were some people with some experience. :beer

 

[locogringo]

very good info!! I assume it's way behind on payments, due to the condition of the house.. and it's empty... abandoned.. no trespassing signs etc. I would say fixed up.. in todays market would put it in the mid-high 300's . what offer should I put in? I'll be talking to my agent later today. the people listing it say short sale professionals? so we'll see how that goes.

I was thinking 200k... but based of what you said... would an offer of 18-190 be wayyy off?

There are so many things to factor in...

REO compared to short pay analysis

If the loans have any RESPA issues, if so and you make a strong case, I can guarantee that most offers will go through.

Factoring in the TRUe value

Having full control over the deal.

I always get the deed on any property I am attempting to purchase. The way I hold that deed a little more unique but that is one of my own personal requirements. On prettier houses, the deed is usually held in escrow until acceptance and if not accepted then quit claimed back.

From what you are saying, if it is worth $350k after fully repaired in today's climate, I would honestly say that in 6 months it would be worth about 10-15% less (depending on the areas, sometimes more). So at best, it is worth $300,000.

My offer based off of the littel I know would be what I mentioned before and I chances are high it would be accepted.

Good luck and keep us posted.

Daniel

 

[Ivan Dan]

none taken... I played phone tag with my agent yesterday.. and made a call today.. but not sure if he's in town. he's not family... actually one of the best agents in my area. I was just asking on here, because I knew there were some people with some experience. :beer

First thing I would tell you about short sales is every transaction is different as every bank has different procedures they want you to follow when attempting a short sale. At this point, I would say the average time frame for feedback on short sale offers is 60-120 days and my experience has been right around 90 days as a general rule of thumb.

You also need to know how long it has been on the market and if there are currently any other offers on the property? If there are 10 offers on the property have your agent sweet talk the listing agent to find out where those offers are price wise. If they are above what you are looking to spend then move on and find another one. If there are no offers then throw in a lowball offer and see if the bank will entertain it. If you decide to do this, you really need to make sure that your agent stays on top of the listing agent to see if any other offers come in that might be better than yours. This is really important because you might be waiting around for 2-4 months for an answer from the bank when you aren't the best offer on the table (trust me the listing agent will not notify your agent of this unless your agent is calling on a regular basis for a status update).

Feel free to call me 714-746-4496 anytime if you need any help or have any questions.

Dan

 

[Ziggy]

First thing I would tell you about short sales is every transaction is different as every bank has different procedures they want you to follow when attempting a short sale. At this point, I would say the average time frame for feedback on short sale offers is 60-120 days and my experience has been right around 90 days as a general rule of thumb.

You also need to know how long it has been on the market and if there are currently any other offers on the property? If there are 10 offers on the property have your agent sweet talk the listing agent to find out where those offers are price wise. If they are above what you are looking to spend then move on and find another one. If there are no offers then throw in a lowball offer and see if the bank will entertain it. If you decide to do this, you really need to make sure that your agent stays on top of the listing agent to see if any other offers come in that might be better than yours. This is really important because you might be waiting around for 2-4 months for an answer from the bank when you aren't the best offer on the table (trust me the listing agent will not notify your agent of this unless your agent is calling on a regular basis for a status update).

Feel free to call me 714-746-4496 anytime if you need any help or have any questions.

Dan

Finally someone who lets him know to have some patience and not to expect it to be "Short". Lots of "ifs".
Took me 5 months of monitoring/research/monitoring and spending lots of time on the courthouse steps to get the house I was after at auction......

 

[Wendi]

New lender guidelines as well. If your buying investment properties be prepared to come in with 30-40% down payment. Investors are cracking down.

As a lender we won't even let you lock the loan until we are ready for docs. Too many fall outs with short sales. And the bank that owns that short sale moves at snail pace.