All the best!
A VA loan is not always favorable to a seller due to some of the things listed below by others. It is going to be harder to get an offer accepted with your VA, its possible but takes a little more work.
Thank you for serving our great country! I wish the VA loan process was better for all parties involved.
We do have some other 100% money available if you are ever interested.
Ideally, your Realtor will be communicating to the listing agent who can give a determination of the turn time. Turn times now are much quicker and can be as little as a few weeks, however if shortsale request is just being placed, then it takes several months. So even though you may get an acceptance from the seller; you are going to be in limbo status until you get an "Agreement and Acceptance of Shortsale" from the bank. This will be several pages with you listed as the buyer and the terms and the conditions of the sale that the lender has agreed to. At this time is when you can move forward and order your appraisal and get your loan moving forward.
With regards to VA financing, there is usually confusion from the seller thinking that their out of pocket costs are much higher. This is a result as a VA buyer you cannot pay certain fees. If your lender can price it out or not even charge the fees that are not allowed by you to be paid then you are good. Typically what I do is I write out the VA non-allowable fees, on the contract, if the lender isn't able to waive them. This usually puts the seller and the listing agent at ease knowing what the costs are upfront and they can determine if the "net" proceeds are worth accepting your offer as a Veteran. Hopefully this info helps. Good luck and best wishes.
I do agree with you in regards of how great and secure a VA loan can be. The problem in our market right now, is the lack of investory in the PHX area. This causes homes to receive several offers, and buyers like you end up competing with cash offers that end up not having to face an appraisal challenge. The basic problem that will will encounter is that some areas are selling for over the listing price. IF you decide to come over the listing price and the "subject property" (property that you are buying) does not appraise. You will have to come up with cash from your wallet to pay the difference. The VA loan will only cover what the property appraises for.
Short sales are an amazing product, that when negotiated correctly and by an experienced professional can be closed smoothly and successfully. The estimated period of waiting time changes from bank to bank. usually anywhere between 90 to 120 days. I have seen amazing transactions with one loan in the short sale approval process that have closed in less than 40 days, but this is VERY unusual and not the norm.
You need a very aggresive and knowledgable realtor to place your offers. In this market the "who" counts a lot and makes a difference between getting your offer accepted or not. Also, having a realtor that has access to several listings could be an option to find you a home through an easier outlet.
Good luck :)
If you need help, check my website and feel free to contact me
Yes, the short sale process can be pretty comfusing. I've found that the process and time-line is different depending on the Lender. I suggest you select a Licensed Real Estate agent as your Buyer's Broker and work though the details of what you want ot have happen and then let your Broker/Agent work through the process with you. Your Broker/Agent will represent your best interest in the transaction and bring their best experience to a successful outcome.
All the best.
As for VA loans, I actually like buyers that are using VA financing. The only issue I've ever run into is with appraisals on VA loans. Other than that VA buyers are preferred unless the home is in very bad condition.
Best of luck!
John Hall and Associates
Certified Short Sale Negotiator (CSSN)
Short Sale and Foreclosure Resource (SFR)
Please see my blog for a full list of tips, expanationas and advice on buying a short sale.
Here’s an example of a short sale. Electronic store has going out of business sale. They are selling a 60 inch flat screen TV advertised on sale. Only 1 left at the store. You go there to buy it. The sales guy says well leave a down payment and we will notify you if 3 months if you can buy it or not. We might need to charge you more money. It’s advertised at $400 bucks but we need to get a more correct appraisal. More than likely it will sell for around $1,200.
Short Sales definition. Waste. More like long sale. False advertising. Get a life.
A short sale response can take from weeks, to months to a year and often never. The bank just forecloses. Some banks have a guarantee on a foreclosed mortgage loan and have no motivation to approve a short sale. Others have serious matters to work out with the seller and the buyer and their offer just wait. It has nothing to do with the offer.
A short sale with a "pre approved" price by the bank, where the previous buyer "walked" during their wait will be your shortest wait for approval.
Good deals and often with a more maintained home can be found on a short sale. However, the approval wait or ultimate approval will continue to be an issue.
Asking for a short sale that is being professionallly managed by the seller's experienced and licensed short sale negotiator will increase your odds.
May I wish you the best.
Jeff Masich, Realtor
Arizona Homes and Land
In my experience it can take from a couple of weeks to 3 or 4 months. Most will probably fall within the 30 to 60 days range.
Short sales are fine if you have the time and is willing to deal with the frustration and stress that comes with it. Here is my take on the different types of properties you can buy: (note that this is based on my own experience. Your mileage may vary.)
1 - private sales - these are the "traditional" sales. You can usually get homes in better condition. However expect to pay more because most owners will want top dollar for their homes. One of the benefits is that you can negotiate repairs and response times are usually very fast.
2 - bank owned homes - these are usually pretty straight forward. They usually take longer than a private sale but not by much. Banks want to close as fast as possible. However they have lots of internal steps and bureaucracy that they need to go through. And those steps will add to the timeframe. You can usually find a good deal if you are patient and is willing to walk away from the transaction if the bank becomes unreasonable. Houses will typically require some repair because most banks will not make any repair. Remember that the previous owner was probably not very happy when he had to move out. So expect to see damage to the property. In addition, most bank owned homes will sit vacant for a few weeks before being sold. Burglars may be tempted to break in and cause further damage to the property.
3 - HUD homes - a very specific type of bank owned home. Expect similar condition as bank owned home. One benefit is that the process to buy a HUD home is very well defined and follow a very strict timeline. You submit the offer. Get an answer the next day. Send the paperwork in. Get the executed contract. And transaction closes within 45 days of executed contract.
4 - Short sales - houses in short sales are typically in better condition than bank owned homes. Most owners that are trying to complete a short sale will maintain the property throughout the process. In many cases the owner is still living in the house during the short sale process and will move out orderly once the house sells. The challenge with short sales is that there is no guarantee that the bank will approve it. So you may end up wasting a few months. You can get some amazing deals with short sales - again, if you are patient and is willing to walk away from the transaction if the bank is unreasonable.
Note: some REALTORS do not like to work with short sales and will tell their clients that it is not a good way to buy homes. I believe the main reason is because the REALTOR assumes the buyer will be better of buying a house in a shorter timeframe. However, I am a firm believer that depending on the buyer, short sales can be a very good way to buy a home.
And don't be discouraged by the competition. They are not exclusive to private sales. They happen every time a house in good condition goes on the market. It doesn't matter if it is a private sale, a bank owned, a HUD home or a short sale. Buyers are all looking for good deals. My suggestion is to have all your paperwork ready and when you see a house you like for a fair price, submit the offer that same day. Remember that you still have the inspection period to evaluate the house condition in more detail.
VA loans are excellent products. However VA appraisers tend to be more picky than FHA and conventional appraisers. I am not sure how much of this is reality and how much is just perception. Different loan officers will have different opinions about VA loans. My suggestion to you - if the VA product is the best one for you, don't worry what others thing - go with a VA loan. You will be fine.
I hope this helps.
Jose Dias, REALTOR
Realty One Scottsdale
As stated here already there are a lot of factors that have impact on the timing of a short sale.
Both of my last two VA buyers purchased short sales in less than 90 days from contract to closing.
Hope the hunt is going well, let me know if I can help in any way.
It all depends on so many factors: which bank(s), knowledge and expertise of listing agent who's handling the short sale, the knowledge and expertise of your agent (buyer's agent), etc. The good rule of tumb right now is 2 - 4 months to hear back (but it could take 6 months or longer). I hope that helps! Thanks, Branka
Short Sales really run a wide spread when it comes to response time. I had one approved in one day and also have one that I have worked on since September of 2009.
On average the time is 90 - 120 days for a response.
Do you have to be out of your current situation or do you have flexibility?
Arizona Homes for Sale by a Guy from Iowa