Home Buying in 20876>Question Details

Ranedae, Renter in 20876

My landlord plans to short sale our town home and has offered us first right of refusal to buy. All rent could be put in escrow to aid in our down.

Asked by Ranedae, 20876 Fri Jul 13, 2012

1. I don't know if he understands the short sale process. 2. Should I ask for a discount on rent to keep in show condition? 3. If we decide to buy, does the escrow account of our paid rent option sound fishy?

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Bruce and Laura touch on very important factors. First, if the sale is not professionally negotiated, the deal could last a VERY long time. Second, you need to know if you can afford buying the house, and that a lender is willing to lend you the money to do so. The other factor is the owner needs to show the bank a, "hardship." Just saying he doesn't want to be a landlord anymore may not work depending on the bank. So there are clearly more questions on this one than answers. The bottom line is you should have someone work with you on this. Either a Realtor or an Attorney.
0 votes Thank Flag Link Wed Nov 14, 2012
Hi Ranedae,

Make sure the terms of your agreement are in writing. I would agree with previous comments that it would be best to have your own representation.
0 votes Thank Flag Link Sat Jul 14, 2012
Hi Renedae,

In addition to hiring an agnt to represent YOU you also want to chose and agent that uses a 3rd party short sale negotiation professional with a history of success. Both of these services are 100% free to you and your Landlord (as long as a deficiency waiver is negotiated). If your Landlord is working with the HAFA program things may be a bit more streamlined but it's still not something he will want to take on alone. Best of luck and contact us if we can help.
0 votes Thank Flag Link Fri Jul 13, 2012
Hi Ranedae - I couldn't agree more with Robert's advice below. If you have any interest in the property, then you should definitely get representation so that your interests are protected -- do not simply rely on your landlord to guide the purchase process.

Having a rental agreement in place on the property really doesn't give you any special consideration with a purchase -- these are two separate things. I can't imagine a contract (or bank) that allows you to make period payments to an escrow account while your short sale is being negotiated. Definitely smells fishy to me.

First, do you want to buy? And second, are you qualified to buy? Talk to a loan officer and see if you can make a purchase. Then, if you want to move forward, I would review this home along with other homes in the market. Ultimately, if you can get a good deal on your rental home, and this home is the best fit for your needs, then get representation and make an offer.

Good luck.
0 votes Thank Flag Link Fri Jul 13, 2012
Sounds like he has no idea what he is doing. If he really is going to short sale it then just make an offer on it when it gets listed by someone. I am guessing he is trying to get around listing it with a Realtor and in that case someone needs to know what to do to get it to close, which is never easy. I would get a lawyer involved to help you and protect you if there is no Realtor involved. Why would you want to keep it in show condition if you are making an offer on it. You just need to take care of it because you could someday own it.
0 votes Thank Flag Link Fri Jul 13, 2012
First, I would not sign anything without having a REALTOR or an Real Estate Attorney representing your interests if you are truly interested in this property. His/Her Realtor should be contacting you with all the required forms, etc. As far as the reduction in rent to keep it in show condition, that is probably between you and the owner.
0 votes Thank Flag Link Fri Jul 13, 2012
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