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Replies (7)
- Jan Cooper, "Jan Cooper1"
- Contributions:1
- Maria Avellaneda, "MAvellaneda"
- Contributions:278
In My experience as a buyer's agent, they are a nightmare and there isn't much benefit to buying from a private sale. There is nothing short about short sales. Banks usually take as long as they feel like it . Do not want to make repairs required by FHA and prolonge and some times prevent the closing. Or the buyers has to make repairs prior to closing which is a risky move that I do not recommend. If the deal doesn't close the seller is out the money.
Another issue which many buyers ignore and agents do not explain sometimes, is that the lsiting price is not necssarily the amount of money the bank is willing to accept for the property. So sometimes banks counter with higher offers that the buyers cannot afford.
Lately some short sale did not get to table because they were condo s and at the last minute lost their FHA approval due to deficiencies percentage.
OF COURSE THERE SOME VERY EXPERIENCED SHORT SALES AGENTS AND BANKS THAT KNOW WHAT THEY ARE DOING.
Another issue which many buyers ignore and agents do not explain sometimes, is that the lsiting price is not necssarily the amount of money the bank is willing to accept for the property. So sometimes banks counter with higher offers that the buyers cannot afford.
Lately some short sale did not get to table because they were condo s and at the last minute lost their FHA approval due to deficiencies percentage.
OF COURSE THERE SOME VERY EXPERIENCED SHORT SALES AGENTS AND BANKS THAT KNOW WHAT THEY ARE DOING.
- Lawrence Tolchinsky, "Real Estate Lawyer"
- Contributions:5
As a 15 year plus real estate attorney practicing in the Miami area, I have to suggest to anyone considering a short sale in this country that they need to get legal advice before proceeding with a bank in negotiations involving a short sale. Why?
In too many states, like Florida, not only are there the dangers of damaging credit scores and having surprises at tax time, but lenders that don't agree in writing to accept that short sale as full payment of the outstanding mortgage amount can still come after the short seller for a deficiency judgment. And they may have a long time after that short sale is completed before they file a thing, depending upon the state's limitations statute.
Right now, all over the country in states that allow deficiency judgments, "vulture" companies are popping up that buy the outstanding mortgages from banks for a song (banks are more than happy to sell them in bundles) and then the vultures sue on those deficiencies with all the warmth and understanding of your average collection agency.
It's a nightmare that is growing.
Bottom line: short sales are good, but everyone needs to be careful right now. Very careful.
Sincerely,
Larry Tolchinsky, Esq.
[hotlink removed by Zillow moderator]
In too many states, like Florida, not only are there the dangers of damaging credit scores and having surprises at tax time, but lenders that don't agree in writing to accept that short sale as full payment of the outstanding mortgage amount can still come after the short seller for a deficiency judgment. And they may have a long time after that short sale is completed before they file a thing, depending upon the state's limitations statute.
Right now, all over the country in states that allow deficiency judgments, "vulture" companies are popping up that buy the outstanding mortgages from banks for a song (banks are more than happy to sell them in bundles) and then the vultures sue on those deficiencies with all the warmth and understanding of your average collection agency.
It's a nightmare that is growing.
Bottom line: short sales are good, but everyone needs to be careful right now. Very careful.
Sincerely,
Larry Tolchinsky, Esq.
[hotlink removed by Zillow moderator]
- sunnyview
- Contributions:25139
Short sale does not need to be considered by any owner without getting solid legal and tax advice first.
Short sales for buyers can be good as long as they are willing to wait. The wait times may be little shorter than they were, but it is still along haul.
Short sales for buyers can be good as long as they are willing to wait. The wait times may be little shorter than they were, but it is still along haul.
- Karla Casey, "Karla Casey"
- Contributions:45
Short sales can be difficult. It depends on the investor, how many lenders the listing agent has to negotiate with and if the seller has any additional liens on the property that need to be taken care of. I have represented a number of short sale sellers here in Hawaii and I have a 100% success rate.
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
I've been through the short sale ringer more than I care to recall.
Short sales are not for the faint of heart. On top of all of the administrative issues (and there can be many), the property generally will have a lot of delayed care issues....which it seems like so many people forget. A house might pass inspection, but may have thousands of dollars &/or hundreds of hours of work. The house value probably won't get nailed if every window, and plumbing fixture needs caulk - but you could lose a weekend over it and many other "light projects." These repairs often signal things home inspectors do not or cannot easily catch (like hidden water damage).
That being said, short sales can be a good buy if you are handy with loads of patience.
Short sales are not for the faint of heart. On top of all of the administrative issues (and there can be many), the property generally will have a lot of delayed care issues....which it seems like so many people forget. A house might pass inspection, but may have thousands of dollars &/or hundreds of hours of work. The house value probably won't get nailed if every window, and plumbing fixture needs caulk - but you could lose a weekend over it and many other "light projects." These repairs often signal things home inspectors do not or cannot easily catch (like hidden water damage).
That being said, short sales can be a good buy if you are handy with loads of patience.
- Colorado Expert Jeff Hansen, Realtor, "jeffhansencolorado"
- Contributions:105
My experience has been, like most things in life, both positive and negative. More positive as of late. Banks are catching on and getting caught up on the backlog. Still, I see some banks taking forever. It is hit or miss, but if you have the patience, great deals exist! Some brokers are better than others at knowing what to look for when finding those deals. Again, like in life, experience matters!
Short Sales Update
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