Foreclosure in Portland>Question Details

Elisa Boynton, Both Buyer and Seller in Portland, OR

Are short sales available for a newbie investor and if, what kind of lenders are open for financing investor short sales?

Asked by Elisa Boynton, Portland, OR Wed Apr 25, 2012

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Marvin Von Renchler’s answer
There are no limitations on who can purchase a short sale. All the bank cares about is the color of your money. Though many real estate agents have gone through some course and claim to be short sale experts, Ive found that you are best served by paying a true expert who has done nothing but loss mitigation and short sale negotiating for private buyers and clients of real estate brokers.

As a former 30 year mortgage company owner, I recommend Metro Mortgage Consultings Bill Kimmer. Contact me if you want his information---I dont want his email or phone here to be spammed. I will not try to solicit your business, as I dont take personal interests in mind when making a recommendation.

There is a fee for this type of help but its worth its WELL worth it.
0 votes Thank Flag Link Thu Apr 26, 2012
Nice to meet you Elisa,
All types of buyers can offer on short sales. Your lender looks at your credit and down payment to give you a loan. The seller's lender will look at the price and terms on your offer. Short selling owners quite often do not have the means to do repairs. If You are an FHA or conventional buyer, your lender will require the home be in finance-able condition. If you are a cash buyer you have a better chance at homes in dissrepair.
I do have a list of great mortgage brokers on my website.
Where do you look for properties? You can email me through my site, and look at everything listed, including short sales and foreclosures.
0 votes Thank Flag Link Wed Apr 25, 2012
No, short sales are not good for a new investor. IMO, short sales aren't good for any buyer.
0 votes Thank Flag Link Thu Apr 26, 2012
For many short sale and HUD homes, there is a waiting period before investors can offer or purchase. The objective is to get owner occupation. In our hot market, you may miss this window on some houses. To finance investment property is still quite doable - you will most likely pay a bit higher interest rate and have a down payment requirement. I have many lenders and debt negotiating partners to help make the process somewhat less stressful. I am a short sale expert (having brokered in Florida for 8 years) so please let me know how I can be of service.
0 votes Thank Flag Link Thu Apr 26, 2012
I am a Florida Realtor so check in your area for verification. Short Sales may now require that you not resale the property for 90 days. You will not know until the end of the process when the short sale approval letter is received.
0 votes Thank Flag Link Thu Apr 26, 2012
HI Elisa
As mentioned, lenders don't care if its a short sale or not. In fact they will preapprove you before you make an offer, but they won't be involved again until you have an offer approval letter from the seller and any 3rd parties that are behind the scenes on the seller side that must approve it as well. So by the time the lender gets involved, it's no different than any other approved offer.
You just need to be approved before you do anything, and I wouldn't limit yourself to short sales. With a good Realtor (I'm sure any of us would be happy to help!) you can look at bank-owned properties, short sales, and homes being sold by an owner, ie everything that's for sale, and then decide what property best meets your investment goals.
When you do offer on short sales, you truly need to understand that a million things can happen before approval is in your hand, it can take several months or more of limbo while the approval process on the seller side is happening, and they are more "iffy" than the other 2 options. That needs to be considered in the evaluation of the pros and cons of each property.
I think one of many attractive options for investors is a Fannie Mae owned property. Contact me directly and I'd be happy to tell you some of the advantages for investors buying a Fannie Mae home. I'm also certified by the National Association of Realtors as a Short Sale and Foreclosure Resource, with increased training and knowledge of short sales and bank-owned homes, and happy to share my multiple experiences in these different types of transactions.
Best to you,
Marge Bare
0 votes Thank Flag Link Wed Apr 25, 2012
Lenders don't care if it's a short sale being purchased but you will want to be pre-qualified better yet pre-approved. As an investor you will need at least 20% down.
0 votes Thank Flag Link Wed Apr 25, 2012
I am not quite sure if you are asking if you can buy a short sale property or if you are saying you are a new investor and need to sell a short sale property. If you want to buy - a short sale or foreclosed property may be the way to go - it will depend on what size of home you are looking for and what might be available on the market. As for financing - even as an investor, you need to have great credit and at least 20% to put down plus closing costs. I hope that helps!
0 votes Thank Flag Link Wed Apr 25, 2012
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