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  1. #1
    Join Date
    Jul. 29, 2006
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    Colorado- Yee Haw!
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    2,756

    Default curious on other's experiences buying a short sale

    We just got the seller to sign a contract today. Now we wait for the bank. I'm curious what experiences others have had with buying or trying to a short sale. We've had really bad luck with this purchase so far (big inspection or title issues on multiple contracts.) We're not in a hurry- just want something to pan out.



  2. #2
    Join Date
    Aug. 18, 2011
    Location
    CT
    Posts
    223

    Default

    We bought one almost exactly a year ago! Put in the (full price, as it was plenty reasonable) on 4/15, closed in mid-June.

    We were dealing with a local bank, which I'm told is a Good Thing in these situations. Also, we were fortunate in that we were renting month-to-month, so we could sit back and wait for everything to work itself out (or get worked out, thanks to the excellent lawyer our realtor--and barn mate--recommended). Actually, the worst part was dealing with our mortgage broker, and that didn't have anything to do with it being a short sale! Wishing you good luck!
    Horsey romances written by a horsey person
    www.JesseHayworth.com



  3. #3
    Join Date
    Dec. 4, 2005
    Location
    washington state
    Posts
    6,872

    Default

    Local banks will make your life easier. Short sales can take 6 months to a year if you get stuck dealing with BofA, Wells Fargo, etc

    I bought a foreclosure last month, took 5 weeks to close from offer to keys. Nice local bank out of Spokane, AmericaWest bank, wonderful to deal with!
    The Knotted Pony

    Proud and upstanding member of the Snort and Blow Clique.



  4. #4
    Join Date
    Jul. 8, 2007
    Location
    Maryland
    Posts
    1,314

    Default

    I'm currently waiting on a seller's bank to respond. Offered asking price. More than 2 months now and we are still waiting! Luckily we aren't in a rush.



  5. #5
    Join Date
    Sep. 5, 2007
    Posts
    905

    Default

    No personal experience, but have known a few people who have gone through (and one trying to buy one currently) short-sales and have found them to be not-so-short-on-time sales. The people currently going through it found out after they got attached and entrenched that it was a short sale. Apparently in the state they are moving to, disclosure of a short sale doesn't have to be obvious, as long as it's anywhere in the contract. Their agent apparently wasn't smart enough to read ALL the small print. They are pretty upset, but really like the house and are trying hard to get this to go through.



  6. #6
    Join Date
    Jul. 29, 2006
    Location
    Colorado- Yee Haw!
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    2,756

    Default

    Quote Originally Posted by jess h View Post
    We bought one almost exactly a year ago! Put in the (full price, as it was plenty reasonable) on 4/15, closed in mid-June.

    We were dealing with a local bank, which I'm told is a Good Thing in these situations. Also, we were fortunate in that we were renting month-to-month, so we could sit back and wait for everything to work itself out (or get worked out, thanks to the excellent lawyer our realtor--and barn mate--recommended). Actually, the worst part was dealing with our mortgage broker, and that didn't have anything to do with it being a short sale! Wishing you good luck!
    Thanks! I'm curious what your lawyer did to help it along. We have never engaged a lawyer but with everything we've been through are considering it. We did a cash offer so we're hoping that helps.


    1 members found this post helpful.

  7. #7
    Join Date
    Nov. 1, 2005
    Location
    Bonsall, CA- with my horses finally home again!
    Posts
    2,165

    Default

    We are on our second short sale. The first one, we were renting and therefore had no contingencies on selling our house. That one took 3 months for the bank to come back to us from offer accepted, and another 2 months to close due to various things (mostly driven by the bank taking forever). Wrinkle there is that I had just had my second child, so that was a bit stressful- the bank came back right as I had him, and we moved when he wasn't even 2 months old! Plus the sellers were really mad to be losing their house (through their own fiscal irresponsibility.... they were those people pulled out a ton of cash by mortgaging it to the hilt at the height of the market, forgetting Econ 101 that no market goes up forever....) and took a lot of stuff they should not have, and were just generally difficult to deal with....................... (sorry, still haven't fixed my "no enter key" issue with the new Windows)..................... the one we are working on now is taking forever; offer went in end of Jan, and we've gotten a verbal approval but still nothing on paper. We won't start inspections without a contract, so we are still waiting. this one is a horse property so much more involved than the first one. The sellers here have been great though- I think they just want out from under their debts........................I think short sales take a LOT of patience. You have to be able to put in the offer, and then be prepared to WAIT. and wait. and wait. And then go-go-go. But if you can do this, you can get a hell of a deal. The house we bought a few years ago has appreciated $200k with the market coming back, and this horse property now is very under-valued (at least, we think so.... once we get in there and inspect it, we may feel differently!). Good luck!
    ~Living the life I imagined~



  8. #8
    Join Date
    Dec. 31, 2000
    Location
    El Paso, TX
    Posts
    12,276

    Default

    If the price was already approved with the bank prior to listing, then it should go smoothly. If it wasn't, then if you can pull up the deed history on the house thru your county deeds/recording/county clerks office, you can find out what the mortgage amt was. Most likely they will take 80% of that or higher. That's because PMI will cover up to 20% of the loan, so the bank won't lose money doing that.

    Make sure you do a walk thru 2 or 3 days before closing and again the day of closing (as close to the closing time as possible). That way you can make sure house is still in the same condition as when you agreed to buy it. Try all appliances, and make sure they work (if they worked before, and are the same as the ones that were there when inspected. Ck that AC, water heater and furnaces are there and hooked up/working.) Many people try to steal them or steal them and put in non working ones.

    If you can, close before noon, so it will fund the same day, and get locks changed immediately, to prevent pissed off sellers from going in and stealing anything before you get possession.



  9. #9
    Join Date
    Jul. 29, 2006
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    Colorado- Yee Haw!
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    Default

    Just an update- we're still waiting. We heard the BPO and HUD statement were sent in the past week or two.


    1 members found this post helpful.

  10. #10
    Join Date
    Jul. 29, 2006
    Location
    Colorado- Yee Haw!
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    Default

    Ha Ha- I thought I'd dredge this one that started on Memorial Day up- since we're still waiting :-)

    Anyone else had a short sale go 6+ Mo? We came to an agreement 6 weeks ago with the bank- then we inspected and the pipes had frozen- so we wrote a new offer and we're waiting. Sounds like there is some action on it lately from the title company and realtors, but nobody has told us anything directly.



  11. #11
    Join Date
    Sep. 5, 2007
    Posts
    905

    Default

    Yup! I've known someone who waited a whole year. They really really wanted the house and could sit it out though.

    The other people backed out after they found out the house they were buying was a short sale and went with something else (their house was sold and they needed out ASAP). That house is still not sold!



  12. #12
    Join Date
    Nov. 1, 2005
    Location
    Bonsall, CA- with my horses finally home again!
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    2,165

    Default

    We ended up waiting 9 months for the property I mentioned earlier in this thread. finally closed over Labor Day. Just like I mentioned, we waited almost 8 months and then once the bank approved the sale, we had 30 days to get inspections, secure our mortgage, and get ready to move. And then 10 days after we moved I had to leave for a week-long business trip. Oh and of course it was the hottest week of the year when we moved.

    It was hectic but we got it done and it was worth it.

    One aspect of this particular transaction is that the bank countered our original offer as by the time they got around to it, the market had definitely come up significantly. We found a few surprises during the inspection, but still ended up accepting the counter as we still felt the property was worth well more than we ended up paying for it, even with the inspection issues and some "deferred maintenance" that we knew it would need right away.

    I love looking out my back window and seeing my horses with a huge field to hang out in instead of a 24x24 pen in Orange county. I love being able to ride them at lunch. I love seeing the owl that lives in one of our palm trees (whom I immediately named Horton) swoop out at dusk and taking my kids on night walks to hear him "who-ing" (hence his name! ). I love seeing my kids ride their bikes all over our place and not worrying about the traffic. I love that the school system is excellent. I love that I can get to hunt fixtures in an hour instead of 2.5 hrs, and my husband can still surf even though it takes him 20 minutes to get there instead of 10 . I love that we hosted 14 people for Thanksgiving yesterday at our new home!
    ~Living the life I imagined~


    1 members found this post helpful.

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