Zillow Advice: Buying a Foreclosure - Many questions | First time buyer http://www.zillow.com/advice-thread/Many-questions-First-time-buyer/529869/ Zillow Advice | Zillow Real Estate Jimmy, As a first time buyer ... http://www.zillow.com/advice-thread/Many-questions-First-time-buyer/529869/ Jimmy, <br/>As a first time buyer you'll have many questions and you deserve many answers.&nbsp; You can ask them here and will get a variety of answers, but the answers you need should come from an agent who works for you.&nbsp; <br/>If you have all cash, you don't have a loan.&nbsp; If you are pre-approved, you're using a loan and it's subject to many issues that are ahead of you.&nbsp;<br/>There are various ways of holding Title to a property. Research Joint Tenants, Tenants in Common for starters. There are more options, but I'm not an attorney and want you to get the right advice.&nbsp; Each of these options have pros and cons depending on your situation.&nbsp; <br/>If one partner who owns property is sued and has a judgment against them, it could attach to any assets owned by that person, so there is always a chance. Be cautious about who you go into business with. <br/>When a home is a short sale, first anything can happen.&nbsp; The only guarantee is a uncertain, unpredictable ride for 3 to 9 months or more while other homes come and go from the market and&nbsp;rates rise and fall and the lender may do what they want, when they want for whatever reason they&nbsp;want.&nbsp;<br/>I've been doing short sales&nbsp;since 2002 when&nbsp;most people had&nbsp;never&nbsp;heard of them.&nbsp; They are the cause of more frustration for buyers, sellers, agents and the industry than anything else you can ask about.&nbsp; I've had banks foreclose in the midst of negotiations while&nbsp;using an attorney.&nbsp; I've had buyers get work out&nbsp;offers from&nbsp;another department of the bank in the middle of negotiations and cancel the sale, I've&nbsp;had buyers get&nbsp;tired of waiting and move on 2 weeks before approval.&nbsp; I've&nbsp;had homes deteriorate and not&nbsp;be worth&nbsp;the original offer.&nbsp; I've had banks come back after months of waiting and demand&nbsp;a higher price.&nbsp; I have closed the vast majority of my short sales and I continue to do them, but you need to know what you're getting into before proceeding.&nbsp; Some are good&nbsp;deals, but only if they close at a&nbsp;reasonable price, with a decent rate on the financing and within a reasonable time frame.&nbsp; None of this is guaranteed.&nbsp;&nbsp;<br/>Find a great local agent, discuss your real goals.. not the way you think you'll&nbsp;accomplish them, and consider all the market&nbsp;has to offer.&nbsp; The sooner you buy, the better that deal may look in a few months as prices are rising&nbsp;and if the interest rates continue moving up.&nbsp; &nbsp; Tue, 25 Feb 2014 03:49:00 GMT http://www.zillow.com/advice-thread/Many-questions-First-time-buyer/529869/ 2014-02-25T03:49:00Z Thanks for the replies guys. ... http://www.zillow.com/advice-thread/Many-questions-First-time-buyer/529869/ Thanks for the replies guys. It is definitely a difficult investment, hence the returns. <br/><br/>I have an experienced short sales relative to watch over me in the area. They've invested in many properties. I'm doing some background homework before I meet with his agent. Tue, 25 Feb 2014 05:11:00 GMT http://www.zillow.com/advice-thread/Many-questions-First-time-buyer/529869/ 2014-02-25T05:11:00Z You can lose a lot of time ... http://www.zillow.com/advice-thread/Many-questions-First-time-buyer/529869/ You can lose a lot of time and money investing in short sales if you dont know what you are doing. <br/><br/>I would partner up with an expert first and learn the trade BEFORE you invest for time or money into it. You arent the first to think you can make a profit from investing in short sales or foreclosure, and experts out there have the advantage over you...... Tue, 25 Feb 2014 05:04:00 GMT http://www.zillow.com/advice-thread/Many-questions-First-time-buyer/529869/ 2014-02-25T05:04:00Z Jimmy, Dan's answer was very ... http://www.zillow.com/advice-thread/Many-questions-First-time-buyer/529869/ Jimmy, Dan's answer was very good and thorough. Just adding a couple of points to it. The short sale becomes a foreclosure typically when the home is sold at auction. I say typically because there are times when the homeowner files a bk and the foreclosure sale is rescinded and it goes up for sale again, or the homeowner works it out with the bank somehow. If an investor buys the property at the auction, they then go through the process of getting the homeowner out and selling or renting the home. Be careful here if you want to buy and flip the property, because there may be a deed restriction in selling the home up to 1 yr. There could be a tax lien or other liens on the property when you buy it at auction. If no one buys the home, it reverts back to the bank holding the lien in 1st position, assigned to an asset manager, who then markets the property as an reo ( real estate owned) acronym.People that buy an reo are not worried about other liens, they just pay the price of the new listing and closing costs.<br/>&nbsp;As Dan pointed out , find a local agent and look for one with a designation like SFR. This agent has went through training on short sales and reo properties and should be best equipped to help you through the process. Good Luck &nbsp; Tue, 25 Feb 2014 04:21:00 GMT http://www.zillow.com/advice-thread/Many-questions-First-time-buyer/529869/ 2014-02-25T04:21:00Z