Home Buying in 12601>Question Details

Steve, Home Buyer in 12601

Is it true that with a "short sale" property, a bank is not going to really look at an offer that is a FHA (not FHA 203) loan?

Asked by Steve, 12601 Wed Aug 15, 2012

I submitted an offer and the bank went with another submitted the same time, so we're next. I called the listing agent as a buyer and was told they're still accepting offers while there's on contract in place, they're waiting on the inspection I was told. I asked my agent to match the listing price and was told "being you have FHA, there is no chance they will take it."

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I don't know anything about your specific case. But in general terms, a bank will accept an offer made with a 203k loan. However, they might still give preference to an all cash offer, even if the cash offer is for less money. If you are using an experienced short sale agent, they should be able to discuss this with you in more detail. Good luck!

Gregory Schreiber
Licensed Real Estate Broker
0 votes Thank Flag Link Wed Aug 15, 2012
Short sales are a pain to deal with. Sometimes they do different things in different ways so you never know for sure. What is happening is the seller is accepting offers and showing them to the bank to see if the bank will accept one. I don't believe that is the best or correct way to do it, but..... A better way would be for the seller to collect the offers and at some point tell everyone that submitted an offer to make your final and best offer since they are multiple offers. Then the seller signs it and presents it to the bank for consideration which can take months. maybe this is what they are doing and it would be the correct way to go.

I don't think the bank will give a darn what sort of loan you have as long as you can get it, it will be allowed on the home and won't be disallowed because the home will not be able to go with a FHA loan. The bank will look at the bottom line so if you are asking for closing costs they will take that into account and it will reduce the bottom line the bank looks at. Maybe your agent knows the house is in such bad shape that it can not go with a FHA loan, in which case you need to change that or look at other homes.
0 votes Thank Flag Link Wed Aug 15, 2012
Thanks, I know construction and it's in great shape. I think he just doesn't want to be bothered in submitting another offer, I just wanted to head off any other bids first...PS: this made me jump ship with another realtor, submitting an offer is just paper in my eyes and she agree's.. lol.
Flag Wed Aug 15, 2012
0 votes Thank Flag Link Wed Aug 15, 2012
i do understand and by no means holding my breath. Better homes that aren't short sales are a little out of reach when child support is in the back ground. I'm just getting to different answers about submitting another offer and if a bank even looks at FHA loans.
Flag Wed Aug 15, 2012
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