Alex J asked:


I put in an offer for a home up for short sale. It has been on the market around 82 days.

Anyway, the bank that would finance me is actually the bank that the owner defaulted on. Does this help me?

Elliott

4 Responses to “Short Sale Real Estate Question?”

1. jpocia03 on March 28th, 2009 5:22 am

   In most cases banks will only allow themselves to finance a purchase of a short sale or bankruptcy. Because it allows them full access to all information regarding the condition of the property, marketing,etc. It allows them to minimize the costs on the home.

   This could work for or against you. The bank will know how much they are in the home for, and might sweeten the deal by providing you credits for repairs and what not.

   It’s a neutral either way. Make sure that you have a quality inspector to inspect the property really well. Most people that are kicked out of there homes, don’t go quietly. So there might be significant damage, either visual or structural.

   Do not use an inspector that any real estate agent recommends if they are involved in the deal. Because in most cases these people have a relationship with the real estate person. And might not be as diligent as you would need them to be.

2. cusefan on March 31st, 2009 8:53 am

   It probably won’t have too much effect. The real points that will help or hurt you are your credit score, income history, and down payment.

   I hope this helps, good luck.

3. Landlord on March 31st, 2009 1:33 pm

   It helps, many like you to be preapproved by them.

   However, the main issue is with the seller, there is not much you can do there.

4. godged on April 2nd, 2009 6:14 am

   Not really. Some lenders will not finance their short sales or foreclosures. There must be a reason for this, but I haven’t gotten a straight answer about why this is, it is typically some generic answer of “it is against company policy.”

   Thanks Skippy for all that info.

   Short sales can be a grind, you might need alot of patience on this.