Sheen -

You have two issues here and it is always best to make them independant of one another. First: The bond money can always run out and if not receiving that money is a deal breaker, I would suggest that you move swiftly and attempt to get into something sooner than later. Second: The short sale process can be a lengthy one depending on the expertise of your agent and the bank that you are working with. The key here is great documentation and communiction to ensure that the process does not drag on. Short sales are great in some situations and challenging in others. I would not like to see you get burned by either situation so look at your personal needs, the needs of your family, and your time frames and decide accordingly.

Brenda;

I'd be careful about advising your clients to submit multiple offers. That's a game you just don't want to play as it is fraught with so many legal traps that you're going to step into one of them despite your best efforts. Why complicate things? Sheen, keep looking. You may not legally be able to enter into another contract, you'll have to check with your agent to see specifically what you agreed to when you submitted your offer. An offer is binding when signed by the seller, regardless of whether it's a short sale or not. We can write in the contract that it is contingent on approval of the lien holder(s), but any other crossing out or adding to borders on practicing law without a license. As Realtors we are onlly allowd to comment on or advise about forms approved by our local, State and National Board of Realtors. Any other form or document we need to be very careful with and be sure to advise our clients to check with a Real Estate Atty. The short sale addendum obligates you for 60 days if you sign it and precludes entering into multiple offers. If more than one offer is approved you could be on the hook for them all. The possibility of that occuring are a bit remote, but I'm not willing to risk my client nor my license to mess with it.

I'm just sayin........

Sheen, I would definitely keep looking at other homes. You never know what will happen with a short sale and the banks are notorious at taking their time. If you did not have a deadline, I would advise you to hold tight. You can easily withdraw your offer up until the bank accepts your contract. You do not want to lose your down payment assistance. So if you find another home (and hopefully you will look at ones that are not short sales because of your time frame) before the bank accepts and gives you a time frame, you will be ready to jump on it. Keep in good contact with your lender regarding the down payment assistance.

Sheen,
In todays market, I have found it necessary to make simultaneous offers on multiple properties for the buyers I work with. A clause can be added to the offer that protects you from becoming obligated to purchase more than one home. You can withdraw any offer up until the contract is fully executed by all parties in writing and delivered. Most foreclosures and short sales require the buyer to sign an addendum required by the lien holder involved. If you are not in agreement with what is on the bank addendum, then you are not obligated to go through with the sale (as long as you don't sign it) but if you are under a deadline to close before your assistance runs out or to qualify for the IRS tax credit then you could lose the benefits you are entitled to by waiting.

You can have your agent add an addendum with the simultaneous offer clause in it and then look for other homes that are on the market that meet your needs. If you find others, then you can have your agent submit offers with the simultaneous offer clause in it and which ever one comes through first with an acceptance from the sellers, go with that home. That way you are not putting all your eggs in one basket.

Foreclosures have less stakeholders to deal with and are sometimes priced lower than short sales. However, banks do not like to do the repairs necessary to make the home meet your lenders requirements. If you are prepared to pay for the repairs yourself that are required by your lender, then, you may even get a better deal on your new home.

In the meanwhile, have your lender send your loan application through underwriting without a property address selection. This can save you time later because the bank addendums I have seen only give you between 14-25 days for loan approval. Your lender will probably require you to put up $350.00 to send it through underwriting. This money is suppose to apply to your appraisal when a home is selected. Different lenders have different requirements so check with your lender to see what the specifics are for their company. You will want to know if the money can be refunded and under what circumstances.

If you wait too long you will miss your deadlines.
Brenda Gravitt CRS, GRI
Coral Shores Realty
bkgravitt@gmail.com
904-573-9638

Sheen, it depends on several things.
1. What is your time frame to buy a home? It can take 30-60 days (and in the case of some lenders, longer) to get an answer on your offer. Short sales really should be called 'long sales' because they are a long wait for the Buyer. We just closed one in 60 days but we have another where we don't even have a response yet and it has been 90 days. If you have time, can be patient, it is a great deal, and you really love the home, then sit tight.
2. If you are a first time home buyer trying to take advantage of the tax credit, then keep this in mind. The final date to close is November 30, 2009.
3. Your agent can tell you how many liens there are on the property, which banks they are with, and that will give you an idea of how complicated the approval process is going to be.
4. Keep in mind that the rules for short sales are constantly changing - so many things you will hear from other people just may not apply to your situation. Just be sure to get the facts from your agent.
5. Is your agent experienced in short sale transactions? You are on the buyer side, but your agent could help the listing agent keep the process moving if the listing agent isn't experienced.
6. Three weeks isn't a long time to wait. At least 30 days is the soonest you will have an answer. If you love the house and have time, then be patient. If you have a deadline, that's another matter.

Good luck with your new home! I'm sure your agent will let you know if it's time to start looking at other homes.

Thumbs to Eric as he understand the lay of the land.

Well done, good advise - you are good at what you do sir.

John

You should ask your Realtor to find you a house that is not a short sale if you are using the bond program. Most of these bond programs are stricter with the inspections and a lot of these short sales aren't in good enough condition to qualify. Stick with something that's close to move in ready and that you can close in 30 days

It depends on how much you like this property. There are many properties from which to choose but those that are in good condition and not short sales will likely cost more. If you love the property and think that you are getting a good value for your money then why not hang in there and wait for the response from the lender? Your agent should be able to help you make this decision based on his/her experience with the lender in question.

Stay in close communication with your agent and be very honest with your concerns and wishes. We wish you all the best and trust you will make the best decision for you!