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Replies (7)
- Vivianne Rutkowski, "VivianneRutkowski"
- Contributions:923
Km9,Legally speaking contract is a contract is a contract, and should never be taken lightly.Once you submit an offer and the contract is ratified be prepared to seat at the settlement table - provided that the lender agrees to the sale. Obviously, if you submit a few offers it can become complicated.
Short sales are hard on the buyer because the contract is contingent on the lender approving the short sale, which can take months.
However, you can write the contract in a way that propects you, the buyer.
Short sales are hard on the buyer because the contract is contingent on the lender approving the short sale, which can take months.
However, you can write the contract in a way that propects you, the buyer.
- Craig Whitlock, "Craig Whitlock"
- Contributions:33
While I fundamentally agree with Vivianne's opinion, I would nonetheless say by all means, keep on looking and if/when you find something you like, write an offer. Short sale offers can be emotionally taxing and logistically burdensome - particularly with lining up your financing.
Most pre-approvals have a shelf-life at best of 3 months and it wouldn't be wise to lock-in a finance rate with that much potential wait time ahead of you.
When you write an offer on a short sale property, it should be constructed so that 1.) you have no commitment to this transaction until notice of lender approval is received (which could take 3 months or longer) and 2.) no initial deposit monies are given until notice of lender approval is received.
While usually a bird in hand is better than 6 in a bush, I'd take the bush option in this case. Good luck!
Craig Whitlock
Coldwell Banker Residential Brokerage
Brentwood West Office
[content removed by moderator for being self promotional]
Most pre-approvals have a shelf-life at best of 3 months and it wouldn't be wise to lock-in a finance rate with that much potential wait time ahead of you.
When you write an offer on a short sale property, it should be constructed so that 1.) you have no commitment to this transaction until notice of lender approval is received (which could take 3 months or longer) and 2.) no initial deposit monies are given until notice of lender approval is received.
While usually a bird in hand is better than 6 in a bush, I'd take the bush option in this case. Good luck!
Craig Whitlock
Coldwell Banker Residential Brokerage
Brentwood West Office
[content removed by moderator for being self promotional]
- Johnny James, "Palmdale Mortgage"
- Contributions:406
Short sale buyers try all combinations of the above and then some. It is painful to wait 6 months and find out the bank went with a better offer. It is also painful for the seller to find out after 3 months the buyer has bailed and put hopes on another property. I think the earnest money deposti is crucial in determining whether the buyer is serious or not.
- Jeff Konstant, "jkonstant"
- Contributions:1970
Craig Whitlock has answered the question correctly. Keep looking and dump the short sale if something better comes along. As he said, be sure the offer is written so you can.
One last piece of advice. Stop using words like bid or bidding. You are making an offer, not engaging in an auction. This is a catchphrase to generate excitement and tap a buyer's emotional buttons.
One last piece of advice. Stop using words like bid or bidding. You are making an offer, not engaging in an auction. This is a catchphrase to generate excitement and tap a buyer's emotional buttons.
- John Valdez, "John Valdez"
- Contributions:419
Unfortunately the banks hold all the control. I have a client that had to wait 8 months until the bank approved the short sale. The new HAFA program is supposed to streamline the short sale process so we'll have to wait and see. Good Luck!
- sunnyview
- Contributions:25115
This post is from September 2009. I am not sure they will benefit much from your advice at this point.
- O. Kheir, CDPE-REOS, "okheir"
- Contributions:112
Consider your exit when making a short sale offer, you can always ask your short sale certified REALTOR to use an addendum identifying a date after which you can walk away if the approval has not happened. In other words, we're willing to wait 180 days for all approvals or "buyers walk."
I have worked with buyers who put in several simultaneous short sale offers knowing that one or two would work out.
My best advise for buyers is, don't miss a great deal waiting around for a short sale approval. Sellers, a short sale may be the most graceful exit to your hardship.
I have worked with buyers who put in several simultaneous short sale offers knowing that one or two would work out.
My best advise for buyers is, don't miss a great deal waiting around for a short sale approval. Sellers, a short sale may be the most graceful exit to your hardship.
When people bid on a short sale...
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