Linda Strasberg's Q&A

In our market you will also need to show 6 months in reserve to cover the mortgage on your existing property plus 20-30% down payment required as well as adequate mortgage payments available in reserve for the property you are offering to purchase as lender(s) are smarter than some buyers and sellers think. 

seek credit counseling or start saving some cash

Roberto,There's a very small inventory of homes without offers on them; most of the properties are in pending or contingency status in the MLS in my area.  Check it out on my site...you'll see what I'm talking about, click property search for accurate up to date info.And Roberto, what you say is true...it just keeps real estate prices at record lows while mortgage rates are low for those who qualify along with tax credit extensions in place fueling the frenzy!

What happened to Roberto's pooch?

Dear Roberto, you sold your house, congrats...I've been so very busy...when did it close? Weren't you always saying it's a declining market there?  Aren't you supposed to be grading papers or have you given up being a math professor and are now focusing 100% of your time on real estate?

the correct answer is subject to property condition, recent sales, demand and supply.

Surely you gest!  Any buyer's agent that is willing to work with you and show you "bank owned" properties contingent upon you waiting to have your home sold deserves to be whipped in their local town square by their broker and each agent in their office.  Listing agents of "bank owned" properties wouldn't even discuss this topic let alone entertain it.  If you can qualify to carry both until your home is sold that's another matter.

Last time I looked at who is one of the major sponsors on Zillow...golly gee whiz...it's Bank of America...with helpful tools and guidance for first time home buyers!  I wonder why they'd be promoting themselves here of all places?  Particularly since Klarek and his gloom and doom cohorts recommend to potential home buyers to rethink this big decision and wait to buy until we return to a Seller's Market and continue to rent housing from them.

What is the price range of the multi family property you are qualified to purchase? What are your long and short term goals...income producing...capital gain? 

Is the price negotiated higher than the asking price?  You may make any offer you wish however getting the lender(s) to accept a short sale payoff amount for ridiculously low offer is not the best use of your time as the waiting period may be as long as 60 days to only get a NO...it will however allow the agent to learn what is an acceptable price at which point they can shush in a buyer who is willing to offer what is required.  When i take a short sale listing I will not accept offers that I know will not get approved as then i have to take the property off the market only to start the process all over again or possibly have it fall into foreclosure...this would not serve my client well if this were to happen.