Home Buying in 11552>Question Details

A.G.  Pennyf…, Home Buyer in 11552

Can I wait until after the bank accepts my offer on a short sale to have a home inspection and get a lawyer involved?

Asked by A.G. Pennyfinger, 11552 Wed Oct 19, 2011

I made a bona fide offer on a short sale. The offer was submitted to the seller's bank for approval. My real estate agent wants me to get a home inspection ASAP and draft up a contract with my lawyer. I don't see why I should spend money prior to hearing from the bank and seeing if they're going to accept my offer. Can someone explain this?

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Answers

8
Most brokers will not recommend that you have an inspection until their are signatures on both sides of the contract. In addition, because short sales could have additional liens on the property I advise you to ask your agent if a title search has been on the home. This will help you figure out if additional liens such as HOA or even alimony from a previous spouse which could cause a delay in closing.
0 votes Thank Flag Link Sun Feb 3, 2013
Additionally, you should be able to find an attorney who will not charge you unless the deal closes. This should keep your upfront cost down. Good luck!
Web Reference: http://www.bverealty.com
0 votes Thank Flag Link Sun Oct 23, 2011
Your agent is giving you proper advice; if you are serious about the property, conduct an inspection right away and choose an attorney for contract details; unless a contract exists, the offer will not be considered. If the procedure isn't to your liking, perhaps consider non short sale properties...
0 votes Thank Flag Link Thu Oct 20, 2011
You may get home inspection ASAP.Because lender will not approved short sell unless lender see the buyer is ready to buy.
0 votes Thank Flag Link Thu Oct 20, 2011
Hello Home Buyer-

Your agent is correct. Here in NY you submit your offer first, get an inspection and draft a contract.

Joseph Brown
Century 21 American Homes
http://www.EastMeadowJoeBrown.com
516-297-3146
0 votes Thank Flag Link Thu Oct 20, 2011
Hi A.G. Pennyfinger,

In CA, buyers NEVER spend any money (home inspections, etc) until the short sale lender(s) has approved the short sale in writing. There is no guarantee the lender(s) is going to approve the short sale so why would the buyer want to possibly throw their money away. I've NEVER had a short sale lender expect the buyer to spend anything until written approval is received.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Wed Oct 19, 2011
Your agent is right. Typically in a short sale the bank will not give you a final acceptance without being assured that you will take the home if their approval is forthcoming. This means that all inspections have been done and a bona fide contract is executed (signed) by both the seller and the buyer, meaning that you, the buyer, are bound to complete the transaction if the bank gives their approval.

Also, once the bank gives approval there is usually a very short window in which to accomplish the closing - there may not be enough time to have the inspections done and the contracts executed within the time frame that the bank has set for closing.

Good Luck!

Regards,
Arlynn
Arlynn B. Palmer, ESQ, SRES, CBR. CMS,. CNS
Associate Broker, REALTOR
Coldwell Banker Claire Sobel
(516)410-3584
(516)621-6300 x 205
Arlynn@ArlynnPalmer.com
Web Reference: http://www.ArlynnPalmer.com
0 votes Thank Flag Link Wed Oct 19, 2011
Your agent is right. If there is any hesitation on your part, the bank will just go to the next offer in line. If it's a house you truly want, you need to know what you're buying quickly because there are others rigjt behind you looking to purchase the home.
0 votes Thank Flag Link Wed Oct 19, 2011
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