Here is a link gets more information about condition: http://fhamortgageinfo.com/
List price is $100,000
Offer will be made at $100,000
Seller accepts offer of $100,000
Bank counters offer at $115,000
It's a long process so get comfortable and find a REALTOR in your area you trust and is good at communicating.
A: Short answer:
Yes - if itâ€™s a single family home/PUD/Townhouse and conforms to FHAâ€™s condition requirements. It has to be completely habitable from day 1.
Yes â€“ if itâ€™s a condo that is on FHAâ€™s approved condo list AND conforms to FHAâ€™s condition requirements.
Here is a link where you can get more information about condition requirements:
The FHA's Minimum Property Standards
Q: What is a short sale process?
A: Youâ€™ve received a good answer below â€“ here is post that may be helpful as well:
Short Sale Myths: 8 CRITICAL Issues You Need To Understand
Great question. I'd like to chime in to answer the part about the Short Sale Process.
As a seller the short sale process consists:
- Submitting to the lender a formal letter describing your financial hardship, in detail, and financial statements documenting that.
- Check to make sure that the financial institution received all of this.
- Waiting for an approval.
- If approved, hiring a real estate agent, with experience in short sales, to list property, set price, accept offers from buyers and present them to lender.
- Communicating through your real estate agent, not directly with the bank. You lender will let you know the offers that have come in are sufficient and approved. Once they approve a price, the sale will close much like the process of a regular sale.
There are more details and information and links that I think you will find very useful within an article I have written called "What is a Short Sale?" https://www.besmartee.com/blog/what-is-a-short-sale
I hope this helps!
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CFS Mortgage assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.
Trevor states, â€œThere are plenty of motivated Sellers with their homes listed on your local MLS.â€ That is actually not true. As of the end of September, there were less than 20 homes on the market in all of San Martin. Sold prices have increased 9.4% in the past 12 months, while list prices are up a whopping 19%. The current lowest price home is an REO listed for $480,000. The next lowest price is $649,950 with the highest price being $3,750,000.
Those of us whoâ€™ve done a high volume of short sales here in the Bay Area can explain the ups and downs of short sales. Itâ€™s true you may have to wait. However, in a rapidly escalating market, you can actually score a good deal on a short sale â€“ if you can win the bidding way to get one. Trevor again mentions, â€œbuy the home you want at the price you're willing to pay. It's a Buyer's Market, after all!â€ Thatâ€™s absolutely not true here. While it may be the case in NY, here in the Bay Area we are in an escalating sellerâ€™s market with multiple offers on almost every home that hits the market.
One thing to keep in mind: when buying FHA, you have limitations on your maximum loan amounts. Contact a local lender to get the limits for your area â€“ this will definitely affect the type of house you will be able to buy.
I've been helping First Time Buyers for 23 years as a mortgage professional and I will tell you what I have always told my clients here in New York: If you are a First Time Buyer, steer clear of foreclosures and short sales.
Foreclosures are someone else's headache. The home probably has not been well-maintained and you're a First Time Buyer adjusting to paying a mortgage. Do you really want to walk in the door to someone else's deferred maintenance that YOU will have to pay for? Also, if you're thinking there are deals to be had in terms of lower prices, mostly those "deals" go to professional investors who can pay cash, negotiate hard with a Lender, and close fast.
For Short Sales, my attitude of late is that First Time Buyers should steer clear. Short Sales tend to be a better deal for the homeowner than for the Buyer. You'll wait MONTHS for the homeowner's Lender to approve the short sale; maybe as long as Six or Seven Months. Meanwhile, you're stuck in a contract to buy that home. I closed a short sale recently with a Buyer who, after seven months said this at the closing table, "I don't even want this house anymore."
And he didn't even get the "deal" on price he thought he was getting! The house appraised for only slightly more than he paid for it at the short sale price. He walked into this deal thinking he was buying a home for $100,000 less than it's value. In the end that wasn't the case.
There are plenty of motivated Sellers with their homes listed on your local MLS. Go find a good Local Mortgage Banker, get prequalified, then find a great, experienced Realtor, and buy the home you want at the price you're willing to pay. It's a Buyer's Market, after all!
As long as the home you are buying meets the requirements that FHA sets forth, you are absolutely able to buy a short sale.,
Re "What is the short sale process" here a brief expanation:
A completed Short Sale means that one or more Lenders holding leins (Mortgages) gets less than the full amount required to payoff the mortgage.
When you make an offer on a possible short sale property you are dealing with the current home owner. If accepted by him/her your offer must now be approved by all lenders holding mortgages on the property. This is the cause of most problems with short sales as the sale cannot be completed without all leinholders agreeing, and getting that agreement is not a certainty.
Your Real Estate Agent must be able explain what is happening, but will seldom be knowledgable enough to handle the negotiations involved and it is usually better to have a specialist handle dealing with the banks etc which are involved.
If the contract is structured correctly the fee for this person can be (indirectly) paid by the main bank involved i.e. First Mortgage holder.
Short Sales will always take longer than a conventional purchase, and contrary to what you might hear will never be bargains. The Banks who have the final say will have the property appraised and have no reason to sell it for less than it's true value.
The other issues is competing with other offers.
Short sales come with a special addendum and there is no promise that it will close. It can take a while. You agent will go through all the details for you.
To find condo/townhomes in a FHA approved complex visit this website https://entp.hud.gov/idapp/html/condlook.cfm for single family home standards check out this website http://homeguides.sfgate.com/single-family-home-requirements
Remember that while you can bid on a short sale home with a FHA loan, chances are that you will not win when put up against conventional loans or all cash offers. This usually due to the extra time it takes to process a FHA Loan which the seller may not want.
If you have any further questions please give me a call at (408) 840-3852 or Thomas.Feng@gmail.com