Profile picture for user660401

Buying a short sale with all liens cleared and bank approved price

Hi,

We are first time homebuyers and have fallen in love with a shirt sale home.  I'm aware that buying a short sale can be a long and disappointing process.  We have 4 months left on our apartment lease so need to be in something by then.  The property has had two previous buyers.  What I know is that one of the two buyers backed out, two liens needed to be cleared from the property and the current list price has been approved by the bank.  Does this make the buying process of a short sale easier for us?
  • December 11 2013 - Tampa
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Answers (6)

Profile picture for TabSells
The question you are asking unfortunately I don't think any of us can truly answer with out knowing the full story.  Your Realtor can help you with this.  By liens, could be a 1st and 2nd mortgage or HOA liens etc.  One is easy than the other to get approved.  I can say, speaking from experience that sometimes short sales are a great win and other times they are not.  I have had a bank approved short sale ready to close and the buyer changed their mind and within a week able to get another buyer.  The lender was not willing to accept the approved price and wanted more. So,  if you are on a time crunch I would not gamble with a short sale because usually even a bank approved short sale does take 30-45 days to issue a new approval letter and if you are getting financing that can be up to an additional 60 days. So just consider if you are willing to go through the process of waiting to 1. find out you got the home 2. find out time is being wasted and you will have no where to go.  3.  find out you got the home but may have to find temporary housing until closing

I hope this could be of some help.  

Tabetha Sibley
Realtor-Associate
Tropic Shores Realty
(352)428-2371
TabSells@yahoo.com
www.TabSells.Net
  • December 13 2013
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Profile picture for JoshBarnettREIB
This is a great question for your Realtor Member.  Call your Realtor and discuss with them the pros and cons of a short sale and ask if your Realtor Member is at least SFR certified.  Best of Luck. 
  • December 11 2013
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Short Sales can be hard and long but also can be rewarding. In regards to the two liens do you have an agent who will represent you and does your agent know which kind of liens are involved? Are those liens two lenders with 1. and 2. mortgage or is the second a Home equity loan. There is a difference and it may be difficult to get settled on that home equity loan. Your agent should call the sellers agent and find out about the liens and where they are in the process and how those two lien holders where open to settle in a short sale. This could give a good idea if the short sale offer will be approved or not. 

Start with looking for an agent now if your lease is up in 4 month. You will not find a home right away and if you do go with the short sale home it can take more than 4 month to get it approved. Before you can make an offer on a short sale, consult with an agent who may can recommend a few lenders for your pre-approval for a loan. This pre-approval letter is needed when you submit an offer. 

Good luck to you.
  • December 11 2013
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Profile picture for PatTasker
You need to find out about the lien, and how likely is it, that it can be cleared in order for you to close. Even though you have 4 months til the lease is up, you dont want to be two weeks from that date and find out the closing wont happen if the seller cant clear those liens....
  • December 11 2013
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Profile picture for Outer Banks N C
Previous buyers does often make the process shorter, like having someone start shoveling snow from your driveway before you start and finish the job. With a short sale there is never an approved price, they might have a good idea what they want but they can also change their minds too. 2 previous buyers usually makes it easier for the next, good luck and enjoy the ride.


tim
  • December 11 2013
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If the price has been really approved in the past 30 days, the process may be quicker.

If you do end up with the property, hire an attorney to review all the docs to make sure that you are not stuck with some liens that were missed...especially if the property is in Florida.

Eve

  • December 11 2013
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