Zillow Advice: Buying Process - Short Sale Advice..... how much to gamble

It doesn't matter if the ...

Tue, 10 Feb 2009 13:38:00 GMT

It doesn't matter if the seller signs, that is just the first step. The lender must sign. You shouldn't gamble a thing until all of you hear back from the lender.

Thanks again for the responses. ...

Sun, 11 Jan 2009 19:57:00 GMT

Thanks again for the responses. We have not signed the short sale addendum and have an appointment with our attorney tomorrow. This is why I am trying to get all of the info that I can before we go so that I can ask the right questions and get ourselves covered. Our attorney already sent the letter indicating that the contract was not acceptable as written so we have effectively stopped the 3 day period for having the contract be considered binding and we will add our requests and send back.

We appreciate all of your information which will make for a better discussion tomorrow.

It is not worth the gamble ...

Sun, 11 Jan 2009 19:52:00 GMT

It is not worth the gamble even if your LOVE the house. Please do what you can to redraw the agreement if you still want to give it a shot. You are steering this boat, don't let them pull you along straight into the rapids. A sharp agent or real estate attorney may be able to provide you with a contract that will give you less risk and more legal protection if the deal doesn't go through. If you love the house, it might be worth a $200 consultation with a real estate attorney to see if an alternative contract would get the job done with less financial risk to you. The current agreement provides you with no protection at all.

Thanks for all of the info. ...

Sun, 11 Jan 2009 19:45:00 GMT

Thanks for all of the info. We are new at this and learning fast. Yes we still have the immediate out if the inspection turns up anything as the house is selling as is so the sellers will not fix any defects.

Has anyone out there something good to say about short sales as we would like to hear about that too.

Good advice from the others. ...

Sun, 11 Jan 2009 17:06:00 GMT

Good advice from the others. Short sale prices really mean nothing unless the seller has already negotiated the acceptable sales price with the lender. So you might suggest that they get lender approval on the price and then go into contract. any other buyer, if there are any, will be in the same situation.
Â I would agree that it might be a better gamble to see if the house goes into foreclosure as the price will be lower then. Â The only compelling reason you might go for this deal is if the house is so unique that it couldn't be duplicated by anything else for anything close to the price (even if prices drop further). Â and even then, you need to be able to get out of the deal after the inspection--what if you inspect next week and decide its not worth it--do you still have to wait 90 days to get out?Â

I would never buy or show ...

Sun, 11 Jan 2009 16:57:00 GMT

I would never buy or show a short sale property because.
1. Â They keep taking offers
2. Â The agent sets the price not the lender.
3. Â The lender usually wants more money than the agent is asking.
4. Â Foreclosures usually sell for less than when it was a Short Sale.
5. Â You could wait months for an answer only to have another come in at Â Â Â Â Â last minute that they accept.
6. Â Never, Never would I give them money up front. Â Only after they accept
Â Â Â the offer and you are opening escrow would I give them any money.

Yes it is a pure gamble. ...

Sun, 11 Jan 2009 16:41:00 GMT

Yes it is a pure gamble. If a better offer comes along, you are out and the bank will dump you on the side of the road without a second thought. I've seen it happen a lot, and it happened to me with a client. If your offer is really low, you can pretty much expect that a better offer will come along. That is just the reality of short sale buying. It's a gamble. High rewark, high risk.

-Marc