Short Sale

sporting · 09-02-2009, 11:33 AM

I put in offer for a home about a week ago... It is a short sale and the owners have accepted the offer, plus they have deposited my earnest money in escrow.

The question is, should the house now show pending on the MLS or not since the banks have not accepted it?

Would my offer seem strong? I am putting in 20% and waived inspection, plus if accepted I am financing with one of the banks that has to approve it (there are 2 banks)?

I originally put in 30 days for them to review, they've changed it to 60 days. I don't like short sales, but this home is too good to let good. Like the previous post, if there is a bidding war, I am out!

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**LuvMyTSX** · 09-02-2009, 11:50 AM

I'm not sure about the MLS listing. I thought they had 48 hours (or some time limit) to remove it from the listing service.

What concerns me is that you waived the inspection. I hope for your sake that the house is in good shape.

At any rate, good luck. Hopefully your situation turns out better than mine!

**NSXNEXT** · 09-02-2009, 12:09 PM

Quote:

Originally Posted by LuvMyTSX

I'm not sure about the MLS listing. I thought they had 48 hours (or some time limit) to remove it from the listing service.

What concerns me is that you waived the inspection. I hope for your sake that the house is in good shape.

At any rate, good luck. Hopefully your situation turns out better than mine!

^999999

I would NEVER EVER waive inspection. Who's idea was that? How are you sure everything is in working order?

baboya96 · 09-02-2009, 12:15 PM

Just closed on my first home last Thursday which was also a shortsale. House will not show as pending on MLS until the bank accepts it. Is the property bank approved?

sporting · 09-02-2009, 12:39 PM

I waived the inspection because:

1. I live right across the street from it since new. I can pretty much see everything that has or could of happened to it.

2. It's fairly new, 05. Again I lived at my house since new and can see the house from my house.

3. I am fairly handy. If there are anything to fix, I can do it.

Most inspector don't do much for me anyways, I can do what they do, which I do to my own house, I inspect it every few months.

And baboy, how do I know that the house is bank approved?

**juniorbean** · 09-02-2009, 4:57 PM

^ He means has the bank approved the offer. The owners may have accepted your offer, but that does not mean the bank has... and they are the ones who need to accept it for there to be a deal.

As for the inspection... still should have done it. We were looking at a foreclosure near one of our friends, and from all outward appearances, the house looked pretty good. We knew we need to finish construction inside, but we did not mind that.

On a hunch we spoke to the developer for the community next store who's sales office sits in perfect view of the house. After speaking from him we removed all offers and ran until we saw Eskimos. He watched the house be built... construction was shoddy and many corners skimped. He told us things even an inspector would not have found.

Point is, for the few hundred dollars it costs for an inspection you should get one. You say you're fairly handy... but unless you are a certified inspector or a home builder, you should get a professional opinion before putting one dime into it. Just b/c you can see it does not mean you know what is going on behind the walls and under the floors...

sporting · 09-02-2009, 5:16 PM

Quote:

Originally Posted by juniorbean

^ He means has the bank approved the offer. The owners may have accepted your offer, but that does not mean the bank has... and they are the ones who need to accept it for there to be a deal.

As for the inspection... still should have done it. We were looking at a foreclosure near one of our friends, and from all outward appearances, the house looked pretty good. We knew we need to finish construction inside, but we did not mind that.

On a hunch we spoke to the developer for the community next store who's sales office sits in perfect view of the house. After speaking from him we removed all offers and ran until we saw Eskimos. He watched the house be built... construction was shoddy and many corners skimped. He told us things even an inspector would not have found.

Point is, for the few hundred dollars it costs for an inspection you should get one. You say you're fairly handy... but unless you are a certified inspector or a home builder, you should get a professional opinion before putting one dime into it. Just b/c you can see it does not mean you know what is going on behind the walls and under the floors...

I know what you mean. I thought about that though. I've been looking for a home for a LONG time now, and have not seen a home that I would pay a lot of money for, until this one.

Location, location, location... If (hopefully not) there is/are anything wrong with the home in question, I would not mind because of the location. I can't seem to find any home better located than being a few hundred feet away from where I am now. Again, my situation is different.

Oh and they just took the home off the MLS as of today.

Just My

**NSXNEXT** · 09-03-2009, 9:40 AM

I don't understand why you wouldn't pay a licensed inspector a few hundred dollars to look around. Hell I'll finished basements, built editions, and I would never buy a house without an inspection. I have good eyes, but 4 are better than two.
I also think taking the emotion out of buying a home is a good thing. An independent inspection is money well spent.

I am going to provide you two tidbits of wisdom, then I will drop the discussion.

http://993c4s.com/wp-content/uploads/2008/08/penny-wise-pound-foolish.thumbnail.jpg

**juniorbean** · 09-03-2009, 10:27 AM

Quote:

Originally Posted by sporting

I know what you mean. I thought about that though. I've been looking for a home for a LONG time now, and have not seen a home that I would pay a lot of money for, until this one.

Location, location, location... If (hopefully not) there is/are anything wrong with the home in question, I would not mind because of the location. I can't seem to find any home better located than being a few hundred feet away from where I am now. Again, my situation is different.

Oh and they just took the home off the MLS as of today.

Just My

Well, I guess what's done is done.

Still doesn't make sense to me that for one of the the biggest investments of your life which will cost you hundreds of thousands of dollars you do not fork over a couple hundred for the peace of mind and another set of eyes (who also happens to be a professional) to look over the place.

Hope everything works out and I hope there are not any hidden surprises.

Good luck!

**juniorbean** · 09-03-2009, 10:28 AM

Also, out of curiosity, how long was the house on MLS? Short sales here vary. Some are scooped up quick, others not so much.

sporting · 09-03-2009, 11:22 AM

Thank you for your advices! I really do appreciate it.

Juniorbean, the home was on the MLS for 1 day when I saw it and I jumped on it like a lion on a gazelle. Actually I waited a week and the price dropped 41k and I found out that the owner's had not paid the mortgage for 4 months. That same weekend I put in the offer and am waiting patiently.

Short sales seems to be a lot around my area. I look at the price it was bought for and the price it is selling for. Most are selling for wayyy less than purchase price.

**juniorbean** · 09-03-2009, 2:05 PM

^ Yeah, we had an $400k offer in on the foreclosure mentioned above and the house was valued around $1.5 million (county tax value). The asking price was $415k, so we would have likely got it had we not pulled out before signing anything after we found out more about the place.

Keep in mind that even though you waived inspection it does not mean you cannot hire an inspector anyway (after closing). This way you can have someone look it over and know what, if anything, you need to fix.

**LuvMyTSX** · 09-03-2009, 2:44 PM

That's strange. I guess it depends on the area. Up where we are looking in NY, the short sales are less than 100k off the price the last owner bought it for. Not as good of a deal, and a hell of a lot more aggravation, it seems. I wonder why it is so different there than other places. This annoys me.

(For example, the house I was referring to in my thread was purchased for around $450k IIRC, and now it is listed as a short sale for $399,900. It's also been on the market since April 2008.)

**LuvMyTSX** · 09-03-2009, 2:44 PM

Quote:

Originally Posted by juniorbean

....

Keep in mind that even though you waived inspection it does not mean you cannot hire an inspector anyway (after closing). This way you can have someone look it over and know what, if anything, you need to fix.

^ I would definitely do that.

sporting · 09-03-2009, 3:01 PM

Quote:

Originally Posted by LuvMyTSX

That's strange. I guess it depends on the area. Up where we are looking in NY, the short sales are less than 100k off the price the last owner bought it for. Not as good of a deal, and a hell of a lot more aggravation, it seems. I wonder why it is so different there than other places. This annoys me.

(For example, the house I was referring to in my thread was purchased for around $450k IIRC, and now it is listed as a short sale for $399,900. It's also been on the market since April 2008.)

My potential home is ~80k off the original purchase price of 460k.

baboya96 · 09-04-2009, 9:23 AM

Quote:

Originally Posted by sporting

I waived the inspection because:

1. I live right across the street from it since new. I can pretty much see everything that has or could of happened to it.

2. It's fairly new, 05. Again I lived at my house since new and can see the house from my house.

3. I am fairly handy. If there are anything to fix, I can do it.

Most inspector don't do much for me anyways, I can do what they do, which I do to my own house, I inspect it every few months.

And baboy, how do I know that the house is bank approved?

In my experience, the bank (who owns the property) must APPROVE the listing value of the house before you make an offer. Often times, listing agent puts up a price that bank hasn't approved. You as the potential buyer may like the price and offer at 100% but that doesn't guarantee you anything because the bank didn't pre-approve the listing value. That's why, often times you see it thru MLS listing whether the house has been pre-approved by the bank. Keep in mind, once they pre-approve, it also have an expiration date... (in my area usually 30 days but this depends on the bank) Between the seller and listing agent, they have an idea of what they want to let it go for, but it means nothing unless the bank (who ultimately has saying in it) didn't approve. Hope this info helps.

For my house, it was pre-approved prior to us looking at it and only had two weeks left before it was expired. Thankfully, they accepted and it's now ours. Good luck with yours! Shortsale can be such a hassle but it's definitely worth it knowing how much equity you just gained by closing on the house.

As for the inspection... ultimately it's your decision. I'm defintely no handy but I do HVAC/Plumbing work for living. So I wasn't too concerned with the existing system but when it comes to structure, walls...etc I wanted a professional opinion. Like everyone said, several hundred dollars is def worth it. Not only that, it gives a list of things to repair (hopefully nothing major) so you won't have to go out and look for them yourselves.

sporting · 10-24-2009, 2:36 AM

I really don't like short sale!!!

Long story short, my agent wasn't good at dealing (nor the experience at all) with short sale neither was the listing agent. They deposited my earnest money when they were not suppose to and I finally got it back a couple days ago.

At this point my offer is void and I am out! But the escrow said that if the banks ever come back with an answer she will let me know, I doubt it.

But I think I am done with buying a home for now!!!

The 8k deadline is near and not possible, at least for me.

Plus the economy is still in the tank and the future looks grim for at least a while. OK good night!

09-02-2009, 12:15 PM	#4
baboya96 Cruising in ATL!! Trader Rating: (0) Join Date: Jul 2004 Location: Atlanta, GA Age: 26 Posts: 752	Just closed on my first home last Thursday which was also a shortsale. House will not show as pending on MLS until the bank accepts it. Is the property bank approved? __________________ 2003 Acura CL Type S SSM 5AT [font=Arial] - Sold in January, 2008 2004 Lexus SC430 Black on Black All Stock for now...

09-02-2009, 11:50 AM	#2
LuvMyTSX Moderator Trader Rating: (0) Join Date: Jun 2005 Location: New Jersey Age: 30 Posts: 12,570	I'm not sure about the MLS listing. I thought they had 48 hours (or some time limit) to remove it from the listing service. What concerns me is that you waived the inspection. I hope for your sake that the house is in good shape. At any rate, good luck. Hopefully your situation turns out better than mine!

09-02-2009, 12:39 PM	#5
sporting CL 3.0 1997 Acura CL Trader Rating: (0) Join Date: Aug 2004 Location: seattle Age: 27 Posts: 186	I waived the inspection because: 1. I live right across the street from it since new. I can pretty much see everything that has or could of happened to it. 2. It's fairly new, 05. Again I lived at my house since new and can see the house from my house. 3. I am fairly handy. If there are anything to fix, I can do it. Most inspector don't do much for me anyways, I can do what they do, which I do to my own house, I inspect it every few months. And baboy, how do I know that the house is bank approved?

09-02-2009, 4:57 PM	#6
juniorbean Mega Moderator Trader Rating: (3) Join Date: Oct 2000 Location: The QC Posts: 20,314	^ He means has the bank approved the offer. The owners may have accepted your offer, but that does not mean the bank has... and they are the ones who need to accept it for there to be a deal. As for the inspection... still should have done it. We were looking at a foreclosure near one of our friends, and from all outward appearances, the house looked pretty good. We knew we need to finish construction inside, but we did not mind that. On a hunch we spoke to the developer for the community next store who's sales office sits in perfect view of the house. After speaking from him we removed all offers and ran until we saw Eskimos. He watched the house be built... construction was shoddy and many corners skimped. He told us things even an inspector would not have found. Point is, for the few hundred dollars it costs for an inspection you should get one. You say you're fairly handy... but unless you are a certified inspector or a home builder, you should get a professional opinion before putting one dime into it. Just b/c you can see it does not mean you know what is going on behind the walls and under the floors...

09-03-2009, 9:40 AM	#8
NSXNEXT Mega Moderator Trader Rating: (0) Join Date: May 2000 Location: TBD Age: 40 Posts: 21,948	I don't understand why you wouldn't pay a licensed inspector a few hundred dollars to look around. Hell I'll finished basements, built editions, and I would never buy a house without an inspection. I have good eyes, but 4 are better than two. I also think taking the emotion out of buying a home is a good thing. An independent inspection is money well spent. I am going to provide you two tidbits of wisdom, then I will drop the discussion. http://993c4s.com/wp-content/uploads/2008/08/penny-wise-pound-foolish.thumbnail.jpg

09-03-2009, 10:28 AM	#10
juniorbean Mega Moderator Trader Rating: (3) Join Date: Oct 2000 Location: The QC Posts: 20,314	Also, out of curiosity, how long was the house on MLS? Short sales here vary. Some are scooped up quick, others not so much.

09-03-2009, 11:22 AM	#11
sporting CL 3.0 1997 Acura CL Trader Rating: (0) Join Date: Aug 2004 Location: seattle Age: 27 Posts: 186	Thank you for your advices! I really do appreciate it. Juniorbean, the home was on the MLS for 1 day when I saw it and I jumped on it like a lion on a gazelle. Actually I waited a week and the price dropped 41k and I found out that the owner's had not paid the mortgage for 4 months. That same weekend I put in the offer and am waiting patiently. Short sales seems to be a lot around my area. I look at the price it was bought for and the price it is selling for. Most are selling for wayyy less than purchase price.

09-03-2009, 2:05 PM	#12
juniorbean Mega Moderator Trader Rating: (3) Join Date: Oct 2000 Location: The QC Posts: 20,314	^ Yeah, we had an $400k offer in on the foreclosure mentioned above and the house was valued around $1.5 million (county tax value). The asking price was $415k, so we would have likely got it had we not pulled out before signing anything after we found out more about the place. Keep in mind that even though you waived inspection it does not mean you cannot hire an inspector anyway (after closing). This way you can have someone look it over and know what, if anything, you need to fix.

09-03-2009, 2:44 PM	#13
LuvMyTSX Moderator Trader Rating: (0) Join Date: Jun 2005 Location: New Jersey Age: 30 Posts: 12,570	That's strange. I guess it depends on the area. Up where we are looking in NY, the short sales are less than 100k off the price the last owner bought it for. Not as good of a deal, and a hell of a lot more aggravation, it seems. I wonder why it is so different there than other places. This annoys me. (For example, the house I was referring to in my thread was purchased for around $450k IIRC, and now it is listed as a short sale for $399,900. It's also been on the market since April 2008.)

10-24-2009, 2:36 AM	#17
sporting CL 3.0 1997 Acura CL Trader Rating: (0) Join Date: Aug 2004 Location: seattle Age: 27 Posts: 186	I really don't like short sale!!! Long story short, my agent wasn't good at dealing (nor the experience at all) with short sale neither was the listing agent. They deposited my earnest money when they were not suppose to and I finally got it back a couple days ago. At this point my offer is void and I am out! But the escrow said that if the banks ever come back with an answer she will let me know, I doubt it. But I think I am done with buying a home for now!!! The 8k deadline is near and not possible, at least for me. Plus the economy is still in the tank and the future looks grim for at least a while. OK good night!