Home Buying in Owatonna>Question Details

Nedkelly, Home Buyer in Owatonna, MN

I am looking for a different home, I have discovered the term "short sale" I have cash to buy a house! How long do I give the bank to?

Asked by Nedkelly, Owatonna, MN Wed Mar 9, 2011

decide?

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8
All buyers have cash, some just borrow it. The further your offer is from the value the longer it will take, usually.
0 votes Thank Flag Link Wed Mar 9, 2011
Hi, Nedkelly!
As the other agents have said, short sales are not always easy and sometimes do NOT go through. I had a cash buyer last summer purchasing a short sale and it took 6 months. SOME of the banks are getting better about having a process, but most are still pretty slow.

It is good that you are a cash buyer. If you get your offer in first, it is highly likely that the bank will look favorably on your cash status.

Good luck!!!
0 votes Thank Flag Link Wed Mar 9, 2011
Nedkelly, Great question! While a short sale is by no means an indicator of it taking less time. A short sale versus a traditional sale will save you money. As a cash buyer you may be able to achieve greater savings by purchasing a foreclosure. However, I do think that you having representation such as a buyers representation. This will ensure that your best interests are looked after as you negotiate and understand your transaction.

Best of Luck to you in your home search!

Chris Rocheford, Realtor
Keller Williams Realty Integrity NW
Licensed in MN
0 votes Thank Flag Link Wed Mar 9, 2011
If you're familiar with short sale homes, you're aware it can take weeks to months for the bank to approve a short sale.

If you choose to write an offer on a short sale, Minnesota has a 'short sale addendum' which does two things;

1. Allows you to set a specific date where if the lender has not approved the short sale on that date, the purchase agreement is canceled.

2. Allows you to withhold the earnest money check until the bank has approved the offer and allows you to perform inspections only after the bank has approved the offer.

If your agent doesn't know about the short sale addendum, please bring it up when you write the offer. This will save you time and money.

Personally, if I had enough cash to buy a home, I would concentrate on foreclosed properties. Cash has the greatest leverage when purchasing foreclosed homes as it allows a shorter closing period and the home won't get ensnared with FHA guidelines regarding condition (and most foreclosed homes have condition issues).
0 votes Thank Flag Link Wed Mar 9, 2011
In my experience with short sales, it depends on your funding, how close you are to the appraisal price in your offer and the response to the inspection. It is very important for the buyer to have all their ducks in order when they make the offer and not expect all the closing costs they request or the negotiations and counter offers can prolong the process. My experience says allow 3-5 months. Be patient and committed and you can get a great buy.
Nancy Legacy Realty Group
0 votes Thank Flag Link Wed Mar 9, 2011
My experience will answer your question with..."it depends on the lender who has the mortgage." Some mortgage companies are quicker to respond than others. You can expect an answer anywhere from 30 days to 5 months. A short sale does not mean a fast sale.
0 votes Thank Flag Link Wed Mar 9, 2011
With cash you have a great chances with foreclosure.
0 votes Thank Flag Link Wed Mar 9, 2011
Short sales are by no means fast sales unless already pre-approved by the lender; therefore as to how to give the lender to decide will depend on how quickly you need to buy....
0 votes Thank Flag Link Wed Mar 9, 2011
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