Zillow Advice: Buying Foreclosures - short sale

No one wants to show them ...

Mon, 22 Jun 2009 12:55:00 GMT

No one wants to show them because they won't get paid for 3-7 months. There is a complicated formula that I have found from expeirence. If you e-mail me I will give your the basics.

The problem is that you can ...

Sun, 14 Jun 2009 18:29:00 GMT

The problem is that you can end up waiting 4+ months for bank approval or worse DENIAL. If your offer is rejected you can 'counter-offer' or walk away and start your buying process all over again. At this point are you really going to look at another Short Sale and get tied up for another 4 months? Probably not. The key is to make sure your offer is in-line with the BPO so it gets accepted the 1st time.

That is helpful. Thanks, ...

Sat, 13 Jun 2009 19:10:00 GMT

That is helpful. Thanks, When I said "BUYER" I meant if I want to see it, should'nt my agent show me what I want? They work for me don't they? I do understand it takes more work, but if that is what is available, then that is all I have to choose from. Forclosures are all selling for way over the list price, so I would have to look in the 150 range, and there is nothing at all in my area for that low of a price.

List price is basically irrelevant. ...

Sat, 13 Jun 2009 19:03:00 GMT

List price is basically irrelevant. If the house is vastly underwater, the bank will want close to "market" value - less perhaps 5%-10%, in my experience. So, recently sold comparable sales (the amount that similar homes have sold for within the last month or two) are what matter.

You should not overlook foreclosures based solely on what they are selling for over "list" unless your concern is entering a bidding war (which I can understand and would not want to do either). The benefit to foreclosures is that you can have an answer and close within a short time period. Short sales take months and, frequently, never happen for the waiting buyer.

I don't know what you mean by "BUYER" short sales. However, I bet that a lot of buyers' agents avoid showing their buyers short sale properties due to the time and uncertainty involved. They want that commission sooner rather than later. You may want to keep your eye open for short sales listed with a "bank approved" price. Those have been worked a lot of the way through the bank's system already and give a better chance for an accepted offer within a shorter timeframe.